Stock exchanges restart and central banks, starting with China, recover. There is also room for show politics. A few hours ago Donald Trump gave a triumphant speech on the State of the Union, underlining the successes of the US economy, after having blatantly turned his back on the speaker of the House, the Democrat Nancy Pelosi, a partisan of the impeachment who, in turn, he tore up the text of Trump's message in front of the cameras.
TRUMP/PELOSI, DUEL IN WASHINGTON
The unexpected show in Washington came at the end of a field day for the stock markets, in full recovery despite the damage that the epidemic continues to inflict: the dead have risen to 490, from 425 yesterday, the sick to 24.300, 4 thousand more than yesterday. There have been new cases of contagion in Japan (10 passengers on a cruise ship), Korea and Singapore. But the liquidity injections of the People's Bank of China (1.700 billion yuan in just two days) have provided the market with the necessary capital to withstand the stress.
SHANGHAI ADVANCES, OIL ALSO MOVES
The Shanghai Stock Exchange is up 1,6% this morning, Hong Kong is up by half a point. Positive ground for the other Asian stock exchanges: Tokyo's Nikkei +1,4%, Seoul's Kospi +0,5%.
The reaction involves the currency markets. The Chinese yuan stabilizes around the seven level. The dollar-yen exchange rate did not move much.
Signs of recovery also for oil, victim of the sharp decline expected in Chinese demand. North Sea crude is trading at $54,6 a barrel, up 1%.
Thanks to BP's 2019 results (+4,5% in London), oil companies anticipated the rally yesterday: Tenaris rose by 2,1%, Eni and Saipem by around 1,4%.
The rally, for now, has not involved other industrial raw materials, affected by the problems of the Chinese production cycle: the Korean Hiunday has had to interrupt production due to the lack of supplies of components from China. Copper futures delivered in March, which fell on Friday to its lowest since August, is only on the second day of a timid rebound.
USA PRICE LISTS IN RALLY, E-BAY FOR SALE
The rally, robust throughout the day, gathered pace on Wall Street, supported by the strong growth in industrial orders.
Wall Street is back to breaking records: the Nasdaq (+2,1%) has set a new historic record; Dow Jones +1,44%; S&P 500 -1,50%, after the best performance in the last five months.
Tesla continues to fly (+13,7%), also driven by the coverage of short sellers. The capitalization of the company exceeds that of Volkswagen by 50 billion.
Worth noting is the starting point of eBay (+8,8%) awaiting an offer arriving from the Chicago list.
Walt Disney (+0,41%) announced that subscribers to streaming services have risen to 26,5 million.
MILAN +1,6%, SPREAD TO 135
The Stock Exchanges of the Old Continent are also running, indeed galloping, supported in particular by the accounts of the credit institutions. In the meantime, Reuters points out that 300 billion euros are available to banks for Tltro loans, which could further lower the cost of credit for businesses.
Milan advances by 1,64%, to 23.844 points. The other markets were no less brilliant: Frankfurt 1,84%; Paris +1,76%; Madrid +1,61%; London +1,56%.
In the Eurozone, in December, the industrial production price index in the Eurozone remained unchanged month on month and fell by 0,7% year on year, in line with consensus expectations.
On the government bond front, the spread closed down at 135 points. The yield of the 0,94-year BTP is XNUMX%.
2020 BILLION SECURITIES WILL BE COMING IN 400 (ALSO IN DOLLARS)
The Treasury will close 2020 with a total issue volume of around 400-410 billion euros. This was stated by the debt management manager, Davide Iacovoni, explaining that the data is in line with that seen in 2019.
The medium-long term issues are aimed at covering 202 billion in medium-long term securities maturing with an expected requirement of around 40-45 billion euros, equal to 2,4% of GDP.
As regards the Bots, the head of debt management also said that maturities are expected for the Bots amounting to a total of 140-150 billion euros.
Iacovoni also announced that the Treasury is considering one or more dollar issues to round out the yield curve, following previous placements at 5, 10 and 30 years. Unlike previous issues, the Treasury could issue on a single maturity and not in a multi-tranche manner.
FIREWORKS FOR AGREEMENT, TOP COMMISSIONS
In the spotlight yesterday the banking sector, illuminated by fireworks insured by quarterly accounts of Intesa Sanpaolo (+2,91%), from which emerge operating revenues and profits higher than expected. CEO Carlo Messina confirmed “the 80% payout ratio, with a dividend of 3,4 billion, which places us in all probability at the highest level among European banks in terms of dividend yield”. The interest margin was slightly better than expected, amounting to 1,74 billion euros, +0,3% on the previous quarter and +0,5% year on year. The positive surprise of the quarterly are the commissions, which rose by 10,2% year compared to the third quarter to 2,16 billion euros.
The rest of the sector is also effervescent. Purchases in the sector also focused on Ubi (+3,9%), Banco Bpm (+3,5%) and Unicredit (+3,1%), which will reveal their accounts in the coming days. Mps is running, up 5,5% on short-term expectations of the EU decision on the demerger plan for Mps' impaired loans to be transferred to Amco.
ATLANTIA, THE BEST TITLE
However, the best stock was Atlantia (+4,1%). The market is betting that, after the withdrawal of the appeal on the Milleproroghe by the holding company, an agreement is looming between the government and the top management of the company on the issue of motorway concessions.
Prysmian was also strong along with the other industrial values: Stm +3,53%, Cnh +3,31.
Ideas on FCA, up 1,6% after the positive data on registrations in January, in contrast to the negative national market.
FERRARI BRAKES, BENEFICIAL TAKES ON NEXI
In contrast, Ferrari loses 2,3% afterwards fourth quarter results and the outlook for 2020 which, although improving, was slightly below analysts' expectations.
Profits taken on Nexi: -1,35% after the leap on the eve of +4,92%.
Weak Mediaset, which lost 0,5% after yesterday's mini-rebound in the wake of the news of the rejection, by the Court of Milan, of the request for precautionary suspension presented by Vivendi on the MediaforEurope project.
