Even Winnie the Pooh pays the price of the tariff comparison between China and the US. The Beijing authorities have banned the distribution in China of "Christopher Robin", the latest film in which the bear appears, "guilty" of looking too much like the president. This is also why Walt Disney left 2,2% on Wall Street yesterday. That wasn't the only Chinese response to the pressure on Donald Trump's tariffs: Beijing has announced 25% duties on goods imported from the US for 16 billion. Once again, as in the case of soybeans, these are targeted measures: this time the target is petrol and other petroleum derivatives. The news hit the oil market, already held back by the unexpected increase in US stocks.
The effect of the other measures decided by China to break the siege of Washington is even more robust. China's Securities Regulatory Commission said yesterday it will review the rules on foreign ownership of listed companies in China's stock exchanges, allow investments now prohibited and give the green light for Chinese companies to be included in the FTSE Russell indices. The response from the price lists was eloquent.
NTT DOCOMO SELLS GOOD MORNING
The Shanghai index gained 2,3%, Hong Kong +0,8%, and the other Asian stock exchanges did well.
The Japanese stock market is down slightly. Ntt Docomo has put up for sale the Italian Buongiorno, bought in 2012 for 267 million dollars to develop content (especially ringtones) for mobile.
The recovery in inflation (2,1% in July) and the stability of currency reserves are also supporting the market: China has not wasted ammunition in supporting the yuan.
STOCKS RISE, OIL FALLS
Oil sharply down after the release of the report on American oil stocks: the September contract drops 3,96%, to 66,33 dollars a barrel. Brent falls back to 77,8 dollars. In the week to Aug. 4, stocks fell 1,351 million barrels as analysts expected a contraction of 2,3 million barrels.
The decline in crude oil has hit oil: -0,8% for the Wall Street energy index. In Piazza Affari Eni -0,7%, Saipem -0,8%.
CONTROVERSY ON TESLA, TRUMP IS GOOD FOR THE NEW YORK TIMES
Last night the US markets closed with modest changes. S&P500 -0,03%, Dow Jones -0,18%. NASDAQ +0,06%.
Down Tesla (-2,4%), while the controversy over Elon Musk's announcement via Twitter that he wants to withdraw the stock from listing. The deal, which could require $72 billion, was briefed to advisers just a week ago.
The Trump effect continues to do well according to the accounts of the New York Times, the president's opponent. In the second quarter of 2018, the publishing company reported net income of $23,6 million, or 14 cents a share, up 51,7%.
BITCOIN FALLS: -55% FROM THE BEGINNING OF THE YEAR
New splash for virtual currencies. Bitcoin loses 7%, to 6.455 dollars, -55% since the beginning of the year. The US SEC has postponed its decision on the application for approval of an ETF with underlying bitcoin until the end of September. The verdict may not arrive at the end of next month: the agency has the right to open an investigation and take more time.
In Europe, uncertainty about the Italian maneuver and, even more so, about the basic guidelines of the economic policy of the government chaired by Giuseppe Conte, who also yesterday denied the existence of alternative plans for the Minister of European Affairs, Paolo Savona. “There is no plan A, B or C but a single maneuver on which the government is working, no derailment or parallel path” by Savona or another minister, Conte said. But in the evening, the Deputy Prime Minister anticipated that with the European Union there could also be a clash over the budget law. Here is Bank of America's comment: “Considering the economic fundamentals, we are convinced that the current level of the spread between BTPs and Bunds is transitory. For December we expect the spread to narrow to 170 points or widen to 400”.
STRONGER EURO, MILAN -0,3%
The euro strengthened for the third consecutive day to 1,161. The Milan Stock Exchange lost 0,29%, at 21.790 points. The other European lists were also weak: Paris -0,35%, Madrid -0,28% and Frankfurt -0,12%.
The exception is London, the only one with a positive increase of +0,8%. Due to fears about a hard Brexit, the euro/sterling exchange rate rose above 0,90 for the first time since 15 November.
THE SPREAD RETURNS TO 250, AT 2,9% FOR TEN YEARS
The Italian secondary slows down, after the brilliant performance of the last two days. After the good reception given to the interview by Economy Minister Giovanni Tria, in which the minister claimed the sustainability of the next maneuver, the operators reduced their (already thin) positions pending the majority summit. The precedent of last Friday's similar meeting weighs heavily, which put the market's nerves to the test by pushing the spread between 270-year BTPs and Bunds up to XNUMX basis points.
And so, after having dropped to 241 points, the spread closed back to 250 basis points with a fluctuation of about ten cents. The yield on BTPs is approaching the alert levels, around 3% exceeded last week: the 2,9-year bond trades at XNUMX%
BPER IN DEEP RED, CARIGE SUFFERS
Bper Banca closed at the bottom of the index (-5,9%), which ended up in a volatility auction several times. The lender closed the second quarter with an operating profit down 23% year on year to 358 million. Total revenues, also due to the 1% decrease in the interest margin, amounted to 509 million. Operating costs increased sharply (+12% to 358 million) and Common Equity Tier 1, down slightly compared to March, to 11,6%.
Carige was also in the red (-2,13%) after the rating cut by Moody's.
Banca Bpm recovers (+1,04%) after the recent decreases. Just below the Unicredit parity (-0,4%) after Société Générale lowered the target price to 16,6 euros, the day after the presentation of the quarterly data.
Flat Mps which did not react to the words of the economy minister, on the return to the market.
STILL IN THE PIRELLI RALLY
Instead, the effect of the accounts continues for Pirelli (+2,4%), which closed the second quarter with revenues down by 2% year on year, to 1,31 billion, slightly below expectations. Adjusted operating profit up 10% to $232 million, better than expected. The tire manufacturer has revised some objectives for the current year, confirmed that relating to operating profit.
Earnings above the percentage point also for A2A (+1,6%). Ferrari +1%. Fiat-Chrysler +0,9%. Leonardo (-1,5%) and Telecom Italia (-1,3%) lose out.
FINCANTIERI BUYS VITROCISET, SALINI SELLS IN THE USA
Fincantieri (+1,4%) and Mer Mec (a company of Vito Pertosa's Angel group) have signed an agreement for the joint and equal acquisition of 98,54% of Vitrociset, a company that operates in training and support activities in the ICT in the defense and security markets, as well as in the logistics, transport and space sectors.
Salini Impregilo +3,94%. The board examined the binding offers received from the subsidiary Lane Industries Inc for the sale of the Plants & Paving segment. The final phase of the sale now begins.
Ima is also in evidence (+3,63%) after the publication of the half-yearly.
