Nervous markets and Milan closes at -0,9%, with banks still in a nosedive. However, the worst price list in Europe is Frankfurt at -1,25%. Swing seat for the Btp-Bund spread. After having opened at 188 basis points, the differential drops to 180, and then rises again to 183.00 basis points, with the rate on the ten-year Treasury bond at 2,28%. A good rebound (-3,07%) compared to yesterday's close. Meanwhile, the euro soars. Fractional decreases for Paris -0,75% and Madrid -0,45%. After a positive start, London loses ground -0,27%, while the debate for the start of Brexit begins in the British Parliament, with the provision called: "European Union draft law, notification of withdrawal".
Negative opening for Wall Street and the shock utterances of Trump and his collaborators continue. Today the US president accuses "other countries of taking advantage of America through devaluation" and explicitly mentions China and Japan. Meanwhile Peter Navarro, head of the US National Trade Council, in an interview with FT, says that the euro is nothing more than a "disguised German mark" with a value that is too low and advantageous for Berlin. Angela Merkel's reply is inevitable:? “We have no powers over the exchange rate and we respect the independence of the ECB”. Moral: Frankfurt closes knockout and on the Forex the euro/dollar exchange rate soars, approaching 1,08 (+0,83%). Black gold and yellow gold both in great shape: Brent +1,88%, at 56,36 dollars a barrel; gold +1,48% to 1213.15 dollars an ounce.
A day full of macro ideas on the European front. Eurostat's flash estimates reveal cyclical growth of 0,5% of GDP in the fourth quarter of 2016, higher than economists' expectations, (+0,4%); on an annual basis, +1,8%, versus 1,7% expected. Inflation rose in January: +1,8%, against 1,1% in the previous survey and 1,5% expected. Unemployment rate down in December, 9,6%, lower than the 9,8% expected. In Italy, on the other hand, the preliminary unemployment rate stands at 12%, stable on November.
In Piazza Affari we find the banks still weak: in particular Banco Bpm (-5,12%), Ubi (-3,19%) and Unicredit (-3,97%). Saipem travels downwards (-2,78%) after the cut of the target price by Banca IMI. Eni tries to recover but then loses -1,25%. The six-legged dog group has successfully drilled and tested the Merakes2 well, the first delineation well of the Merakes discovery under the East Sepinggan Production Sharing Contract (PSC). Heavy Leonardo (-2,3%) on the news that Mauro Moretti, CEO of the group, was sentenced to 7 years in first instance by the Court of Lucca in the trial for the Viareggio massacre. Profit taking on Stm (-2,4%). Ferrari (+1,67%) is on the run awaiting the quarterly results on 2 February and Telecom Italia (+1,86%), which will present its accounts on Friday and the business plan next week.
