Corporate America gains momentum, both due to positive quarterly reports and news on the media front. The Dow Jones index gained 0,45%, the S&P 500 0,35% and the Nasdaq 0,22%. The Beige Book shows that in June, American consumption continued to grow at a "modest to moderate" rate. Janet Yellen's hearing in Congress did not add any significant news. But the markets have now started the return of capital to the USA: the rise in yields on bonds has stopped, the dollar has taken the path of an upward trend. The US currency strengthens against the euro to 1,352 yes, close to the lows of January 2014. The weakening of the single currency, analysts say, is the factor that can trigger the recovery of European stock markets, as demonstrated by yesterday's session.
Instead, Tokyo is advancing at a slow trot this morning (+0,08%), despite the good news from the USA. Hong Kong falls - 0,23%, not at all impressed by the rise in Chinese GDP, the result only of the credit expansion decided by the authorities. Entirely different music in Europe. In Paris the market closed up 1,4%, Frankfurt +1,4%, Madrid +1,7%. London advanced by 1,1%. Much more pyrotechnic Milan: the FtseMib index ends the day on highs with a rise of 3,17% to 21.069 points. The spread between the BTP and the Bund closed at 162 basis points, remaining almost unchanged from the 163 basis points at the opening, and the domestic 2,82-year yield settled at XNUMX%.
MURDOCH HUNTING FOR TIME WARNER (+13%)
In addition to the quarterly earnings, Wall Street was ignited by Rupert Murdoch's rejected mega offer (at least for now) on Time Warner, which jumped up by 16% to 82,4 dollars. The valuation made by Twenty-First Century Fox for the media group corresponds, between cash and shares, to an equivalent value of 86,3 dollars. Time Warner is a conglomerate of media businesses ranging from television to content production and publishing.
Another driver of the bull was Intel's accounts, +6% to 33,6 dollars, a price it hadn't seen since January 2004. For the chip giant, the worst for the PC market is now behind us. And the demand is growing in all segments of the electronics market.
NOW IN TELECOM NOBODY HAS MORE THAN 8%
The undisputed queen of the session was Telecom Italia (+7,9%) at 0,909. In the evening, with the stock exchange closed, the explanation for this leap was given: Telefonica has started the process of reducing (and perhaps exiting) the former Italian incumbent. Yesterday the Spanish group announced the issue of a bond by converting Telecom Italia ordinary shares for a nominal amount of 750 million and with a three-year maturity. Based on Telecom Italia's market capitalization today, equal to 12,2 billion euros, the amount of the convertible would correspond to approximately 6,1% of Telecom Italia's capital and consequently to over a third of the share package held to the Spanish group.
Telefonica is thus starting to reduce its shareholding in Telecom Italia below 10% (from 14% to 8%) as requested by Cade, the Brazilian authority. The bond will pay an annual nominal fixed interest of between 5,25% and 6%% and additional interest linked to dividends and cash distributions corresponding to Telecom shares. The hypothesis of the merger between Wind and 3 has also contributed to pushing Telecom's prices, which will simplify the picture of the offer on the crowded Italian market.
Mediaset, a fresh ally of Telefonica, rose by 1,7%. Telecom Italia Average +4,6%.
GTECH HAS BINGO IN LAS VEGAS. AND PUT HOME IN LONDON
GTech reacted positively, up 4%, to the announcement that it will buy (partly cash, partly in shares) the American International Game Technologies +7,7% on Wall Street, world leader in slot machines and gaming systems. The two companies will merge into a newly established holding company incorporated under English law. At the end of the merger, Gtech will no longer be listed on the Piazza Affari. The value of the operation is 6,4 billion dollars (4,7 billion euros), including the estimated 1,75 billion dollars (1,29 billion euros) of debt of the US prey. The new group, based on aggregate data from the last 12 months, will have more than 6 billion dollars in revenues and over 2 billion in ebitda.
LUXURY: PRICES ON SALE, PURCHASES ARE BACK
The third arrow of Piazza Affari yesterday was the luxury sector, relaunched by analysts in light of the prices on balance after the recent decreases. Ferragamo gained 5,2% thanks to the promotion of Société Générale which raised the recommendation to Hold from Sell. Driven by the Florentine maison Yoox rose by 4,8%, thanks to the upgrade of Equita to hold, with a target price set at 19,3 euros. Tod's +2,3%, Moncler +3,4%.
LISBON SAVE THE HOLY SPIRIT, BANKS TO THE RESCUE
All Italian banks are up, after the intervention of Lisbon to protect Banco Espirito Santo. The drop in the euro favored purchases from overseas. Banco Popolare leads the race with a leap of 7,98%, followed by Ubi Banca + 5,86%. Intesa + 4,27%, Mediobanca + 3,77% and Bpm + 3,97% are also in turmoil. Bper +3,14% and Unicredit +2,5% are also advancing. Mps rose by 2,24%: the latest Consob communications on relevant holdings revealed that following the capital increase, Jp Morgan almost eliminated its stake in the capital of the Sienese institute from 2,527% to 0,058%, as did T .Rowe Price Associates fell 2,112% to 0,217%, while UBS fell 2,382% to 1,524%.
Among the Generali insurance companies + 2,3%. UnipolSai +1,9%.
VOLA STM DRIVEN BY INTEL
StM exploits +5,3%, encouraged by the growing results announced overnight by Intel, world leader in computer chips.
Among the industrial stocks, Fiat advances +0,8%. Norges Bank rose to 2,154%. Finmeccanica +2,6%, Prysmian +4,3%. Snam +1,59% and Terna +2,49% are up. The managing director of Cassa depositi e prestiti, Giovanni Gorno Tempini, said that the transfer of Tag (the gas pipeline that carries a third of the gas to Italy from Austria) to Snam is being studied. Regarding the sale of a minority stake in Cdp Reti, Tempini declared that negotiations are underway and that the timing of the announcement is confirmed by the end of the summer.
Enel gained 3,4%, A2A +3,9%, Snam +1,5%. Eni rose by 2,6% while Brent oil futures traded at 106 dollars a barrel (+0,1%). Saipem +0,3%.
