Concerns about the health of the global economy are growing. It is not yet a recession alarm, but the worrying signs are multiplying. Yesterday the Chinese currency suffered the heaviest devaluation since last August: lo yuan it slipped to 6,4943 against the dollar, a drop of 0,60%. The US currency also continues to rise against the euro: the dollar trades today at 1,150, the same level as last night's close.
Il Petroleum turns around after a positive start: Brent loses 0,5% to 44,80 dollars. It had gone as high as $46. The American WTI leaves a dollar and a half on the ground and trades at 43,5 dollars.
The concerns coming from Beijing have not weighed much on Wall Street, grappling with the negative numbers coming from the domestic economy. Macroeconomic data show that the American economy is losing ground: above all, it is slowing down the creation of new jobs. US private companies created just 156 new jobs in April against a forecast of 196: it was the weakest month since November 2013. Attention is now focused on the overall hiring data, due out tomorrow.
The price lists go back Use: the Dow Jones index loses 0,7%, S&P500 -0,6%, Nasdaq -0,6%. Banks are still down: Goldman Sachs -1,7%, JP Morgan-1,4%, Citigroup -2,4%. The blue chips of industry are also bad: General Electric -1,2%, United Technologies -1,6%. Cisco loses 1,6%. The best stock is Time Warner (+3%): the media company, which controls Cnn and the production house Hbo, increased its profit for the quarter to 1,2 billion dollars from 933 million a year earlier.
After the heavy red accused in Tuesday's session, the European stock exchanges continued the race to the bottom. Piazza Affari The Milanese stock market closed down by 0,2%, at 17935 points. The other European equity markets were also negative: the Cac-40 in Paris closed at -1,1%, the Dax-30 in Frankfurt at -1,1% and the Ftse-100 in London at -1,3% . At sector level, in Europe the Stoxx index of raw materials lost 2,9%, Telecommunications -1,8%, Banks -1,5%, Oil -1,3%.
in Frankfurt Dialog Semiconductor lost 8,6% as the maker of the chips used in Apple and Samsung smartphones reported a 58% drop in underlying operating profit. Piazza Affari Stm paid the price, down by 3,2%.
Deutsche Telekom it lost 2,1% after announcing a drop in revenues in domestic businesses. Orange fell by 3,6%, but Telecom Italia closed up by 1,1%. Italy has officially notified the broadband plan to Brussels, after concluding the investigation that began in December, and expects the go-ahead soon. Meanwhile, the undersecretary for economic development with responsibility for communications, Antonello Giacomelli, said that the Italian government is following the fate of Telecom Italia Sparkle with particular attention.
Megafine effect in London for Bhp Billiton, the world's largest mining group, fell 5,7% after the judiciary in Brazil yesterday filed a 155 billion real ($44 billion) civil suit over a dam collapse that killed 19 last November and the pollution of a river.
Bond weak, with the peripheral paper – including the Italian one – losing ground compared to the Bunds, traded at 0,20%. As a consequence, the Btp/Bund spread widened to over 130, returning to the maximum for more than two months. The yield on the ten-year BTP stands at 1,51%. Today, Ascension Day (with open markets but reduced activity in Germany and France), medium-long Spanish placements are on the agenda.
Contrasted the performance of bank stocks. Lead the race to the bottom Carige (-5,1%). Heavy Understanding (-2,2%), on the eve of the Veneto Banca shareholders' meeting: the subsidiary Banca Imi is the guarantor of the bank's increase, leaving between 12 and 14 May to close by June. Down too Mount Paschi (-1,4%): JP Morgan reiterated the Neutral recommendation, cutting the target price to €0,80 from €0,90.
They also go down Pop. Emily (-1,1%) And Mediobanca (-0,8%). holds Unicredit (-0,1%), after announcing that 78% of its shareholders decided to have the 2015 coupon paid in the form of a script dividend, ie in shares and not in cash. Strong upside reaction instead of the Popular Bank (+4%) and of Ubi (+ 1,7%). bpm + 0,2%.
Yesterday, with the publication in the Official Gazette, the decree on the new measures for speed up credit recovery times and on indemnities to the bondholders of the four rescued banks. According to the Minister of Economy, Pier Carlo Padoan, credit recovery times are reduced by three years compared to the 7-8 indicated by the banks.
The excellent performance of asset management should be noted. Bank is highlighted Mediolanum (+3,7%) ahead of Azimuth (+0,5%). Also prominently featured Post (+2,2%), yesterday under the lens of Mediobanca Securities. In a report entitled "Transform the overhang into an opportunity" the broker explained that in 2016 it is possible that the Ministry of Economy and Finance will carry out a placement of 30-35%. So for the analysts the company should make a buy-back, i.e. buy back 10% of its capital using the cash available on the balance sheet.
Fiat Chrysler it closed down by 1% to 6,84 euros, canceling the progress of the day made on the wave of the news of the signing of a collaboration agreement with the Google Self-Driving Car Project to develop autonomous driving technology. Starting today, FCA shareholders will find in the securities dossier the RCS shares that the group has decided to distribute to its shareholders at a rate of 0,067746 ordinary RCS shares for each Fiat Chrysler held.
Salt instead Ferrari (+1,1%) thanks to the final rush. UBS raised its target price to $50 (approximately €43,50) from $48 and confirmed its Buy recommendation. Finmeccanica advances among industrial stocks (+1,1%).
Brembo -0,34%: Kepler-Cheuvreux reiterated the Hold recommendation (neutral), bringing the target price to 46 euros from 41 euros. From the February lows, the stock has rebounded 45%. But the performance since the beginning of 2016 is a modest +4% due to the violent fall of the first month and a half.
The Eurostoxx index of the Oil & Gas sector loses 1,4%. Eni in the end it canceled the progress of the day, ending down by about one point at 13,40 euros. In Milan it also lost ground Tenaris (-0,6%), but not Saipem (+ 1,6%).
Among the utilities, Terna it rose by about half a point to 4,87 euros after the quarterly. The company recorded an Ebitda of 395,1 million euros, higher than the average analysts' estimates which indicated 385,7 million. Even the net profit of 162,2 million exceeds the consensus, attested at 151 million. Enel closed with a slight increase of 0,2%.
Sale Luxottica, thus continuing the rebound started at the beginning of May after six consecutive months of decline (April -2%). Broker Raymond James announced that he has raised his rating to Outperform from Neutral with a target price of 58 euros.
Avanza Ferragamo (+1%). Eraldo Poletto, CEO of Furla, unexpectedly resigned the day after the announcement of Tip's entry into the share capital in view of the listing: the manager should be Michele Norsa's replacement in the Florentine maison. Yoox is still down (-1,3%).
The race continues Technogym (+6%), by far the most successful international freshman since the beginning of 2016.
D'Amico International Shipping closed up 3,3% at 0,4550 euros after announcing first quarter 2016 results. The international leader in the product tanker market achieved an Ebitda of $21,6 million, unchanged over the same period last year but on revenues slightly down from 77 million in the first quarter of 2015.
Here is the comment of the CEO Marco Fiori: “After having recorded three very strong quarters last year, the freight rates of tankers on the spot market calmed down slightly during the fourth quarter of 2015, above all due to a seasonal effect and due to the maintenance of refining facilities in the Gulf of the United States. But in December the market started to grow again, confirming a good level of strength also in the first three months of 2016”. The premises are positive.
