The growth of US inflation to 5%, the highest since 2008, has not frightened the American markets: on Wall Street there was an all-time high for the S&P 500, the 1,43-year Treasury Note continues to strengthen, also because the demand for paper US, as the auctions of the last few days have shown, remains very high: the yield is at its lowest in the last three months, at XNUMX%.
AMERICANS NEVER SO RICH, A BILLION VACCINES FOR THE POOR
Behind these numbers is the well-being spread among Americans by the extremely expansive policy practiced against Covid-19: household wealth has risen to 1.390.600 billion dollars, thanks to the boom in shares (3.200 billion), real estate (1.000 billion) and cash in wallets, never so swollen: 14.500 billion, 850 more thanks to support from Washington. Thanks to these data, the Fed can challenge, for now, the increase in prices, judged "temporary". But until when? This is the question that justifies the markets' caution a few hours before the start of the G7 in Cornwall, which opens with a strong message: a billion vaccines for the poorest countries to "vaccinate the world" by the end of 2022.
The Asian price lists contrasted this morning. The CSI 300 index of the Shanghai and Shenzen stock indexes lost 0,5%, but the Hang Seng of Hong Kong gained 0,5%. Tokyo's Nikkei is flat.
DIDI, THE CHINESE UBER ON THE STOCK EXCHANGE
Didi, China's leading taxi app, has filed an initial public offering.
Mumbai's BSE Sensex is up 0,5%: at these levels the week would close with a 0,8% increase. Since the beginning of the month, the Indian Stock Exchange has recorded an inflow of new capital equal to 1,3 billion dollars. China's stock market recorded a net outflow of $30 billion.
COMMODITIES FOR THE ELECTRIC CAR: +140% IN ONE YEAR
The flight of raw materials continues. According to theEconomist, the five commodities most in demand by the electric car register an average increase of 140% in the last year. Part of the increase, however, is linked to temporary phenomena, such as the boom in airfares, which is expected to subside within months.
WTI oil is flat at $70. The United States withdrew the restrictive measures on three top Iranian leaders, a soothing gesture in view of a possible evolution of the nuclear negotiations.
HISTORICAL RECORD FOR S&P 500, 974 BILLION FOR INFRASTRUCTURE
The US stocks are on positive ground: Dow Jones +0,06%, S&P 500 +0,48%, Nasdaq +0,76%. The stocks of day traders deflate. Game Stop -27,2% after the announcement of a new, forthcoming capital increase.
During the night, news of the bipartisan agreement on the infrastructure spending plan arrived from Congress. The ten senators called by the White House to negotiate have said yes to a plan that according to the Wall Street Journal worth $974 billion over 5 years. The package does not include tax increases or the introduction of new tax instruments.
THE ECB DOES NOT CHANGE AND IT DOES NOT WARM UP THE MARKETS
European stock markets reacted almost flat or with a modest decline to the ECB decisions, which confirmed its expansive strategy across the board, starting with purchases on the market with the Pepp programme. The institute unanimously confirmed the rates: main refinancing at zero, overnight deposit at -0,5%, marginal lending at 0,25%. In the next quarter, the bank will continue with the Pepp purchases at a "significantly faster" pace than in the first months of the year, and will continue to guarantee ample liquidity through refinancing operations. The ceiling on Pepp purchases remains stable at 1.850 billion.
“Monetary policy decisions – wrote Paul Diggle of Aberdeen – have remained identical, almost word for word unchanged since April”. A predictable choice, both because it is logical that the first anti-inflation move should go to the Fed (which is in no hurry), and because only now are we seeing the first fruits of the recovery, still unripe. Woe to pick them from the tree too early.
MILAN -0,4%, INDUSTRY GETTING SPEED UP
Piazza Affari loses 0,4%, falling back to 25.638 points. Industrial production rose by 1,8% in April compared to March, accelerating from +0,3% in March, against expectations of +0,3%. The seasonally adjusted monthly index shows cyclical increases in all the main groupings of industries: positive changes characterize capital goods (+3,1%), energy (+2,4%), intermediate goods (+1,1% ) and, to a lesser extent, consumer goods (+0,5%). Lastly, on a trend level, Istat reports "extraordinarily large" increases in all sectors.
The ECB has revised up its growth forecasts for the Eurozone in 2021 and 2022, respectively to +4,6% and +4,7%, keeping 2023 at +2,1%.
ALTICE TOP BRITISH TELECOM SHAREHOLDER (+6,55%)
The rest of Europe, like Milan, also held up well to the higher-than-expected increase in US inflation: Frankfurt -0,09%; Paris -0,26%; Amsterdam +0,38%; Madrid -0,25%; London +0,11%.
Patrick Drahi, telecommunications tycoon with Altice in France, the United States and Israel, yesterday surprisingly became the leading shareholder of BT Group (+6,55%) with the purchase of 12,5% of the capital.
THE YIELD OF BTPs FALLS TO 0,75%, SPREAD BELOW 100
The BTPs, together with the other securities of the periphery, were the winners of a day dominated more than by the ECB by the signals coming from the US bond market. The spread between ten-year BTPs and Bunds drops below 100 for a few moments, to stop at that threshold at the end (-2,23%). The rate of the Italian benchmark stock also fell to +0,75% (from +0,77% yesterday). The German Bund is at -0,25% (-1 basis point).
The Treasury has placed the maximum amount of 7,75 billion euros in the reopening of the 3, 7 and 20-year BTPs. The seventh tranche of the April 2024 BTP was placed for 3,5 billion at a rate of -0,22%, the lowest since March, compared to -0,06% last month. The July 2028 bond was assigned for 2,5 billion with a yield of 0,46%, the lowest since April, compared to 0,69% of the mid-May placement. The Treasury then placed 1,75 billion in 20-year bonds maturing in March 2041, on the fourth reopening, with a rate of 1,55% from 1,14% in mid-February.
After a small flare-up, the rates of American T-Bonds calmed down and the 1,48-year Stars and Stripes showed a yield of XNUMX% in the afternoon, slightly down on the previous closing.
QUESTION BOOM, STM SPEEDS UP
Among the blue chips, Stm stands out (+1,73%): the CEO Jean Marc Chéry said that demand from customers is about 20% higher than the turnover guidance for 2021 of 12,1 billions of dollars.
The WSTS (World Semiconductor Trade Statistics) has revised upwards its forecasts for the sector for 2021, and now sees an increase in sales of +20% (compared to the previous +11%). The expectations for 2022 have also been published, with growth of +9%.
STELLANTIS PAYS FOR FRENCH DIESELGATE, JEEP OPENS IN DETROIT
Stellantis dropped up to 3% due to the investigation into Peugeot in France on diesel emissions before recovering up to -1,35%. “The news is obviously negative, but the dimensions of the risk at present appear modest,” he writes in Equita. Meanwhile, the government would have included in the recovery plan sent to Brussels an allocation of 600 million euros of public funds to build a giga-factory for batteries. Rome's intention would be to forge a public-private partnership in order to exceed one billion euros in investments to equip the country with a strategic infrastructure for electric mobility.
Meanwhile, yesterday, the Detroit plant was reopened, the only factory in operation in the city, the cradle of the US car. It employs five people for the production of the Grand Cherokee.
Ferrari confirms its decline, -0,51. At the bottom of the list is Cnh Industrial (-2,13%), followed by Prysmian (-1,93%).
ATLANTIA RETURNS TO THE STATE
Atlantic +0,1%. A little over 20 years after the privatization, yesterday the board of directors formally accepted the offer presented by Cdp, in consortium with Blackstone and Macquarie, which values 9,3% of ASPI at 100 billion.
ENI +0,67%: BRESCIA INVESTIGATES THE NIGERIAGATE Prosecutors
Eni is on positive ground (+0,67%). The Prosecutor of Brescia is investigating the deputy prosecutor of Milan Fabio De Pasquale and the prosecutor Sergio Spadaro for having hidden evidence in favor of the defense of Claudio Descalzi and his predecessor Paolo Scaroni, later acquitted in the Nigerian bribe trial. Saipem -0,6%.
CREDIT SUISSE PROMOTES UNICREDIT, “NEUTRAL” ON INTESA
Unicredit (+0,31%) announced yesterday that it intends to bring forward the dates for the approval of the half-year accounts (July 29 against August 4) and postpone those for the presentation of the plan. Credit Suisse raised the recommendation to 'outperform' from 'neutral' and the target price to 12,5 euros.
Intesa instead leaves 0,59% on the ground for the opposite reason: the Swiss Bank has downgraded the share to neutral, from otuperform. Bper (-0,73%), Mediobanca (-0,60%) and Banca Bpm (-0,20%) were also weak.
Bad day also for Mediolanum (-1,83%), after the increases following the collection in May. Moncler also retraces (-1,39%).
FINCANTIERI, BIG SHOT IN INDONESIA, SOMEC RUNS
At the top among the mid caps Fincantieri (+5,12%), toasting the new order from the Indonesian Ministry of Defense for the supply of 6 fremm class frigates and the modernization and sale of 2 mistral class frigates.
Euforica Somec (+14,53%), which in turn acquired new orders for a total value of approximately 100 million euros from Fincantieri for the turnkey construction of glazed enclosures and public areas on nine luxury cruise ships new generation.
SANLORENZO SELLS SHARES, INCREASE HOLDS BACK AUTOGRILL (-2,2%)
Giù San Lorenzo (-3,47%): the Holding Happy Life of the Perotti family, controlling shareholder, sold shares equal to approximately 3% of the capital of the yacht company, through an accelerated bookbuilding procedure, at 24 euros per share .
Black session for Technogym (-2,86%) and for Autogrill (-2,24%) after the announcement of the capital increase.
GOLDMAN AND MEDIOBANCA LOOK TO SECO
Of note is Seco (+1,34%): on the company that deals with industrial design and hardware Goldman Sachs has started hedging with a buy rating and target price of 5,2 euro per share, while Mediobanca Securities has assigned outperform and tp of €4,25 per share.
In evidence Unieuro (+2,25%) after the BoD approved the five-year Strategic Plan'.
SOSTRAVEL, A STEP TOWARDS US PRICE LISTS
SosTravel shined on Aim (+6,03%) which celebrated the completion of the consultancy contract with Mango Capital, which will act as sponsor for the admission of securities to the American Otc-Qb market.
