The revenge of the "old" journalism has been relentless. An investigation of Guardian and New York Times on the political use of data on 50 million Facebook users unlawfully collected by Cambridge Analytica, a company linked to the US right, has opened a serious breach on the credibility of Mark Zuckerberg's company, which now faces the risk of a drop in advertising sales and severe restrictions on the use of data collected from users. “After this episode – writes the Financial Times – politicians must act to save the web”. An appeal that falls on the same day in which the European Commission asked the G20 to address the issue of taxes for the big players on the Internet.
SELF-DRIVEN CAR FATAL ACCIDENT
Making technology day even more disastrous came the news of the first fatal accident caused by a self-driving car. It happened in Tempe, Arizona, where a woman crossing the street was mowed down by an Uber car. On Friday Waymo (controlled by Google) and Uber themselves had urged Congress to change the law to allow the free movement of self-driving cars.
ZUCKERBERG LOSES 37 BILLION, 118 BILLION BURNT BY TECH
The reaction of the markets was not long in coming. Facebook (-6,8%) burned 37 billion in capitalization, but the landslide extended to other securities in the sector: Amazon, Apple and Netflix show losses of more than 1,5%, Microsoft -1,8%. Alphabet, the parent company of Google, lost 3,2%. The sector leaves 118 billion on the ground.
The consequences on the indexes are heavy. The Nasdaq lost 1,84%, S&P 500 -1,42%, Dow Jones -1,35%. Only one blue chip, Boeing (+0,3%), closed the session with a positive sign.
ORACLE COLLAPSES (-7%) BETRAYED BY THE CLOUD
After the stock exchange, Oracle released data for the quarter that was not entirely convincing, especially as regards the cloud area, the title lost 7%.
The high quotations of securities (Friday at an all-time high) and the caution of operators on the eve of the Fed meeting contributed to amplify the decline. half.
ASIA WEAK, ABE'S POPULARITY COLLAPSES
Rain of sales on tech this morning also on Asian price lists. Tokyo retreats by 1%, but the yen does not take advantage of it: Prime Minister Shinzo Abe's popularity continues to collapse under the blows of the school funding scandal. After the revelations on the modification of the documents by the Ministry of Finance, the last 2 polls give the Premier a consensus at the lowest since he took office in 2012.
Losses around 0,5% in Hong Kong and Korea. Chinese price lists are also down -0,4%. Slightly up Mumbai +0,2%.
Some oil prices are weak on the eve of today's meeting between Donald Trump and the Saudi prince Bin Salman: new military moves are looming in an anti-Iran function.
Brent at 66,19, Wti at 62,16. The decline in crude oil prices weighed on oil companies: down Saipem -2,42%, Eni -1,15% and Tenaris -1,24%.
AGREEMENT ON BREXIT, QE TOWARDS END OF SEPTEMBER
Difficult session for the European markets despite the brightening on the Brexit front. The pound rose but also the euro, traded this morning at 1,2345 on the wave of rumors about indications arriving from Frankfurt.
In fact, the news launched by Reuters (almost official source of the ECB's moods) according to which even the "softer" advisers of the European Central Bank are now in agreement on the fact that QE should end this year, had a wide echo. The first increase in European interest rates, according to the picture shared by operators, could be 10 basis points in the second quarter of next year plus at least one more in 2019, while the deposit rate is seen to go from -0,40% to zero within two years.
MILAN (-1%) IS THE LESS WORST
Milan, negative right from the start, suffered a lower decline than the other price lists: 0,98% at 22.633 points.
The heaviest decline was that of London -1,69%, after the agreement reached with Brussels on the transitional phase up to 2020. The decline is partly explained by the currency's appreciation: the pound rose by 1% against the greenback at $1,4088, highest since February 16. Against the single currency, the British currency increased by 0,8% to 87,46 pence per euro.
Frankfurt (-1,39%), Paris (-1,13%) and Madrid (-1%) also closed in deep red.
SLOW DOWN INDUSTRIAL PRODUCTION
2018 for Italian industry began with a sharp drop in production: -1,9% against a forecast of -0,7%. The drop can be attributed, as in the rest of the euro area, to the marked contraction in energy, due to milder than average temperatures in January. The underlying trend remains positive.
Improve the trade balance. Istat announced that in January the Italian trade balance recorded a deficit of 87 million euros, compared to a deficit of 575 million in the same month of 2017. Overall exports in January increased by 9,5% to 34,695 billion, and imports amounted to 34,783 billion, an increase of 7,8% in trend terms.
Other than abolishing Fornero. According to a paper by the International Monetary Fund, Italian pension expenditure is and will continue to be too high in the coming years despite the entry into force of the Fornero reform. For this reason, measures are needed to reduce pensions calculated with the salary-based and mixed method, reduce the criteria for granting survivor's pensions and raise the low level of contributions paid by self-employed workers.
Recovery in the afternoon of Italian securities on the bond markets. In the end, the spread against the Bund stands at around 140 points after having reached a maximum of 141,3. The 1,88-year trades at XNUMX%.
The gap between Italian securities and Spanish Bonos is under tension: the yield spread between Italian and Madrid ten-year bonds widened in the morning from 56 to 62 basis points, the highest since last August.
STM PAYS FOR THE US CHIPS CRISIS
The storm in the tech sector also had an echo in Piazza Affari. Stm paid the price (-1,8%) in the wake of the falls of the Philadelphia Soxx index -3% which groups together semiconductor stocks. Down also the German Infineon (-2,16%).
ITALGAS AND POPOLARI PROTECT THE FTSE MIB INDEX
The best stock is Italgas (+1,89%). Some of the most penalized stocks recently regained the plus sign: Atlantia +0,43%, Mediaset +0,36%.
Telecom Italia defends itself (+0,35%).
Piazza Affari limited the damage thanks to the stability of the finance sector. The banks, the barometer of the price list, held up despite the rumors about the failure to lengthen the Qe: the basket ended trading down by 0,76%.
Weak Agreement (-1,2%); better Unicredit (-0,35%). The fall of Banca Monte dei Paschi -2,72% does not stop. Well Ubi (+0,36%). On the waterline Bper (+0,13%). Fineco Bank -2,08%.
Outside the main basket, Credito Valtellinese is galloping (+5,34%) after entering the FTSE Italia Mid Cap index; the market looks positively to the future of the institution, seen as a possible prey in the event of mergers, after the success of the 700 million capital increase. In the opposite direction Carige: -6,32%.
FITCH PROMOTES POLICIES. BENETTON GROWS IN GENERALI
Insurance companies are limiting the damage after Fitch's report on the sector: the concentration of assets present in the portfolios of Italian companies, we read, constrains the ratings, but the risk is partly offset by the solid business profile and the capital base which represent points of strength in creditworthiness.
Cattolica Assicurazioni advances (+0,4%), UnipolSai (-0,4%) and Poste Italiane (-0,57%) are down. Generals -0,2%. Edizione Holding, the financial company of the Benetton family, is evaluating the possibility of rising to 5%.
BRAK YOUR CAR, FLY CAIRO
The European automotive market was weak (stoxx index -1,2%). In Milan heavy Exor (-2,33%), Fiat Chrysler (-1,95%) and Cnh Industrial (-1,65%). Chief Executive Officer Richard Tobin left the leadership of the company yesterday. Ferrari -1,19% and Brembo -1,09%.
Positive points for luxury: Salvatore Ferragamo +1,18%, Moncler +0,78%. The tender offer for Yoox Pret a Porter began yesterday (+0,13%). Luxottica falls (-1,68%).
Out of the main basket, selective rediscovery for editorials: Cairo Communication +7,2% and Mondadori +4,99%. Conversely, Monrif (-3,92%) and Gedi (-2,45%) suffer. Class Editori (-9,09%) sunk by the announcement of theintegration with Gambero Rosso (+ 14,65%).
From today Giglio Group (+7%) is promoted by Aim on the Mercato Telematico Azionario (MTA), STAR segment.
