The UK's go-ahead for the use of Pfizer-BioNTech's coronavirus vaccine hasn't excited markets much, partly on suspicion that London has shortened the time to distance itself from the EU ahead of Brexit (the the next few hours will be "decisive", EU negotiator Michel Barnier has just said), in part because the effects of the pandemic are worsening for the moment. A curious note: the The Washington Post identifies in the Desmon of Nusco the excellence among the refrigeration systems necessary for the conservation of the vaccine. Los Angeles authorities have ordered residents not to leave their homes and businesses that require people to be present to shut down. Yesterday, new hospital admissions in the United States exceeded 100 for the first time. Meanwhile, even before entering the White House, Joe Biden has made it known that the administration will no longer be soft on China. Unlike Trump, he explains in an interview with New York Times, the administration will not focus on the trade deficit but will aim for “real progress on China's malpractice problem, which steals intellectual property, dumps products, illegally subsidizes big companies” and forces American companies to “transfer technology ” to their Chinese counterparts. In this context, it is not surprising that the rush to buy shares is slowing down.
NEW US TIGHTEN ON CHINESE STOCKS
Tokyo's Nikkei floats this morning on parity, albeit close to the highs of the last thirty years. Slight increases for the Kospi of Seoul and for the S&P ASX 200 of Sydney. Hong Kong's Hang Seng gains 0,5% and Shanghai and Shenzhen CSI 300 indexes are down 0,2%.
The US price lists are in balance, supported by the expectation of the longed-for agreement on fiscal stimuli as early as December. The S&P index rose by 0,18% in line with the Dow Jones. NASDAQ -0,05%. Wall Street's future has not moved much.
Tonight the United States House of Congress approved the law that requires foreign companies listed on Wall Street to bring their accounts into line with those of the United States and to provide precise information on the subjects who control them, in order to ascertain whether there are government entities and military.
OIL LITTLE MOVED. IRON AND COPPER RUN
Brent oil moved slightly to 48,2 dollars a barrel, from +1,7% yesterday. It seems that the ministers of OPEC enlarged to Russia are agreeing on a very soft remodeling of the production regime in the coming months. There are still disagreements, especially between Saudi Arabia and the United Arab Emirates, on the beginning of the temper: the former would like to leave everything as it is until March or even beyond, moving forward as far as possible, or at least until the pandemic is completely under control , the increase in production.
The strength of Chinese demand, together with a weakening of supply that has not only seasonal reasons, has pushed the price of iron ore in the last few hours to the highest levels of the last seven years at 136 dollars a ton. Yesterday the Brazilian mining giant Vale, pressed by the need to adapt the production structure to the indications on environmental protection, respect for workers and the peoples of the Amazon, revised its production targets downwards.
The restart of China has also brought copper prices up to their highest levels since 2012. Analysts configure the danger of underproduction, also due to the threat of a strike by the miners of Chile, one of the largest producers on the planet.
Gold is recovering slightly to 1.834 dollars an ounce.
EURO AT THE TOP (1,2110) PUT THE ECB IN CRISIS
1,2110. This is the level to which the euro has risen against the dollar: compared to the beginning of the year, the gain against the dollar is equal to 7,6%, but the single currency also rises against the pound (+6,6%) and other currencies traditionally more solid, see the yen (+3,2%) or the Swiss franc. It is a rise that is not at all appreciated by the ECB due to its effect on deflation and the impact on exports. Hence the importance of the decisions that the Frankfurt institute will take at its meeting on 10 December: but only strong, improbable expansionary measures could reverse the upward trend predicted by the major operators in the short term: Goldman Sachs sees the exchange rate at 1,25 (rising in 2022 to 1,28). Société Générale at 1,23 next summer. The conflict over the Recovery Fund does not help the single currency: the European Union is developing a plan to be able to go ahead with the recovery program even without Poland and Hungary.
Still storm on the Mes. In a letter to the leaders of the M5S, a group of five-star parliamentarians opposed the reform of the Mechanism, threatening to block its ratification in view of the vote in Parliament on 9 December. More than 50 grillini are ready to vote "no" to the reform of the European Stability Mechanism (MES). If that were the case, the government would risk crisis.
MILAN GOES BACK: THE VACCINE PUSHES LONDON
Milan retreats: -0,58%, below the 22 mark (21.972), the worst figure for the day in the Old Continent. In evidence London (+ 1,2%) thanks to the boost ensured by the green light of the British health authorities for the Pfizer and BioNtech vaccine. Within a week, the first vials will be made available to hospitals and centers for mass vaccination.
The European Union has criticized the speed of approval and has specified that its procedure is longer but more complete. The almost immediate green light was considered by many observers as a political maneuver by Boris Johnson. Michel Barnier, the head of the delegation negotiating the terms of the divorce with Great Britain, said that, on some relevant points of the dispute, the distances between the parties remain those of six months ago.
VOLKSWAGEN AND BAYER BRAKE FRACOFURT
In the rest of Europe, Madrid is positive (+0,96%) and Paris, flat, while achievements prevail in Frankfurt (-0,55%). Bayer -2%: since the beginning of the year the performance is -35%, for a capitalization of 47 billion. It's the worst stock in the Dax. The title suffered greatly from the acquisition of the US Monsanto. The problems at Volkswagen continue: production manager Thomas Ulbricht has resigned.
Declining spread on the Italian secondary market: the yield differential with the 10-year Bund drops to 113 basis points (-3,05%); the BTP rate remains slightly above the historic lows, at +0,6%. The EU has placed a 600 million euro bond maturing in 2035, with demand exceeding 3 billion.
UNICREDIT: STOP THE LANDSLIDE, IT'S BUY FOR SANTANDER
Banks are weak, in contrast with the rest of Europe. But, archived two days of passion after Mustier's resignation, Unicredit rebounds (+0,4%). In the afternoon, the institute's nomination committee met under the chairmanship of Stefano Micossi to kick off the selection process for the new CEO. In the Milanese city the name of Marco Morelli, ex Mps, circulates insistently, but the names of Victor Massiah (ex Ubi) and Andrea Munari (Bnl) are also mentioned. Banco de Santander analysts, going against the trend, confirmed the buy on the bank in Piazza Gae Aulenti, with a target price of 10 euros, considering "the sharp correction in prices excessive and the stock now a buying opportunity". The restructuring of the group under Mustier, the analysts explain, "didn't happen overnight, in the same way Unicredit cannot become a bad bank within 24 hours".
DEL VECCHIO RISES TO 11% AT MEDIOBANCA
Consob announced that Leonardo Del Vecchio has further increased the share capital of Piazzetta Cuccia, reaching 11%. The purchases were made between 2 and 9 November, therefore a few days after the shareholders' meeting which renewed the board of the merchant bank on 28 October and in which Delfin supported the candidates of Assogestioni.
BPM/BPER: RISK CAN WAIT
The former Popolari stand out in the negative. Banco Bpm (-3,6%) accelerates downwards after that Vandelli, CEO of Bper (-2,4%), held back on the possibility of a merger on which the market bets. The number one of the Modenese group in fact underlined that the Banco Bpm dossier is not currently on the table, and it is difficult if not "impossible" to start it now, before having completed the integration of the new branches.
In the wake, the main shareholder of Bper, i.e. Unipol, also loses blows, down by more than 3%. The Bolognese insurance group was also affected by the announcement by the Antitrust on the start of proceedings against the subsidiary UnipolSai, together with Generali (-0,6%) and Allianz for unfair commercial practices.
FINCANTIERI, THE FRENCH DEAL IS DONE
Heavy Fincantieri, which yields 3,3% after the rumors about the possible shipwreck of the marriage with the French Chantiers de l'Atlantique.
Among the few upward points, Campari +0,6%: Citigroup slightly raised the target price.
Well, among the oil companies, Saipem (+2,2%) and Eni (+0,7%). In the luxury sector, Moncler +1,7%.
JUVENTUS, THE CHAMPIONS IS GOOD FOR THE ACCOUNTS
Green hydrogen projects are picking up speed. Enel and Eni signed an agreement yesterday for the construction of a plant that involves the construction of an electrolyser for the production of green hydrogen to serve two Eni refineries, yet to be identified. Meanwhile, A2A has signed an agreement with Ferrovie Nord Milano to identify the best method of producing and supplying green hydrogen to power the trains: it starts from the line between Brescia and Lake Iseo. They will replace diesel-powered trainsets.
Among the best titles yesterday Juventus (+ 2%), than yesterday evening beating Dynamo Kyiv, has secured the rights to advance to the next round in the Champion League. In fact, every victory in the Champions League guarantees the clubs 2,7 million euros.
