Yen, Swiss franc and gold rose. These elements are enough to bear witness to the search for "safe havens" by financial operators in the face of general uncertainty. And so the yen, a classic safe haven asset for Asia, strengthened during the night to 111,7 against the dollar. Gold is at its highest since the end of July at 1.227 dollars an ounce. The franc traded to new highs this morning at 0,9982 against the dollar.
TRUMP ATTEMPTS TO SHUT DOWN THE KHASHOGGI AFFAIR
Geopolitical tensions weigh heavily together with doubts about Wall Street's ability to bear the Fed's choices. More than the rate increase, the squeeze on liquidity caused by the withdrawal of funds given during the recession weighs heavily. In this climate, concerns about the Chinese situation and the crisis with Saudi Arabia after the assassination of journalist Jamal Khashoggi are being felt. Donald Trump, in an attempt to put out the fire that threatens relations with the Saudi monarchy, one of his main allies, sent Secretary of State Pompeo to Riyadh.
Brent oil is trading on Asian markets this morning at 81 dollars a barrel. In Piazza Affari yesterday Saipem +1,8% after the announcement of new contracts for 400 million dollars.
Asian stock markets slow down after a positive session. In Tokyo, the Nikkei index is at parity. In the Japanese market, the technological giant Softbank gains 3%, from yesterday's -7%. Softbank has recently launched a super fund ($100 billion) thanks to the support of Saudi Arabia.
Hong Kong loses 0,2%, from +1% tonight. The CSI 300 index of the Shanghai and Shenzhen stock exchanges is unchanged, around 3.125 points, on the lows of the last two years. Against the tide the +0,5% of the Indian Stock Exchange.
CHINA HOLDS BACK APPLE. WEAK BOFA AFTER THE ACCOUNTS
This morning's data confirmed the slowdown in Chinese inflation, a new negative sign on the health of the economy. Chinese stocks listed on Wall Street were also negative yesterday: Alibaba -2%, Baidu -2%.
Wall Street closed lower last night, at the lows of the day, with sales mainly on high-tech companies. Dow Jones -0,35%, Nasdaq -0,88%, S&P500 -0,58%. Apple closed down 2,1% as Goldman Sachs signaled that China's slowdown could negatively impact the company's earnings growth trajectory.
Weak Bank of America (-1,9%) after accounts. Today it's the turn of Goldman Sachs and Blackrock.
ADMINISTRATION AND TIGHTENING ON THE BANKS IN THE MANEUVER
In Europe today attention will be dominated by the examination of Italian maneuver sent to Brussels yesterday evening. The document sent to Brussels provides for the amnesty (20% of the undeclared can be paid in 5 years) as the League asked for "equalization" by the "handcuffs to the evaders", time dear to the Five Stars. There is an agreement to start the 100 quota on pensions from next February while taxes will increase, says the League, only for banks and insurance companies. For banks, the deductibility of interest expense could end up in the crosshairs, which would drop from the current 100% to 86% "There is a continuous dialogue with the EU Commission, this maneuver does not want to blow up Europe" he said the Minister of the Economy Giovanni Tria: the sentence on the markets from today.
BUSINESS PLACE UP SLIGHTLY
Piazza Affari closed yesterday's session slightly higher in a climate of weakness throughout Europe. At the end of the day, the Ftse Mib rose by 0,16% to 19.287 points.
Paris moved little (-0,02%). Madrid +0,24%. The electoral defeat of the government majority Frankfurt does not slow down (+0,78%).
London is also advancing +0,48%. Same variation but downwards for the pound at the start of a crucial week for Brexit. This week's European Council may fail to deliver a Brexit deal, while some EU countries, like France now, underline the need to prepare for the scenario of a no-deal exit of the United Kingdom from the Union.
Against this background, tensions on bonds remain in view of the verdict of the rating agencies at the end of the month.
SPREAD STABLE, PUBLIC DEBT DOWN
Yesterday the yield on the 10-year BTP remained around 3,56%, the highest since the beginning of 2014. The spread with the Bund rose to 306 basis points from 308 basis points on Friday evening, below the peak of 317 for the week last year, maximum since the end of May.
Bank of Italy has announced that the public debt, after the record in July, fell in August: -15,5 billion, for a total of 2.326,5 billion euro.
The value of Italian government bonds held by foreign investors rose again in July from the minimum for more than a year recorded the previous month. According to the data contained in the monthly document "Public finance, borrowing requirement and debt" released this morning by the Bank of Italy, in July the value of the portfolio held by non-resident investors amounted to 672,464 billion euro, 33,8% of the total .
THE DEFICIT/GDP RATIO IN SPAIN RISES TO 1,7%.
On the debt front, the effect, however contained, of the promotion of Portugal by Moody's should be noted: the spread with the Bund fell below 200 points.
On the other hand, the Spanish bond weakened, to 1,70% yield, after the Minister of the Economy, Nadia Calvina, said in a press conference that Spain expects a GDP deficit ratio of 2019% for 1,8 , compared to the 1,3% deficit to which the Rajoy government had pledged.
FEATURED TELECOM, LUXURY AND AUTO SUFFER
Telecom stands out in Piazza Affari (+2,04%): the rotation between market topics continues. The entire European telecommunications sector is in great shape: Stoxx +1,7%. In addition to Tim, Deutsche Telekom and Telefonica also rose by around two points.
On the other hand, stocks in the luxury goods sector, among the most affected in this phase of the market, suffer. Moncler drops by 1,6%. Ferragamo -0,1%. The family seems to believe in the revival and intend to maintain control.
In contrast Tod's, up by 1,48%. Equita analysts have highlighted that the reorganization of the Della Valle family holdings could be "potentially preparatory to a possible future sale of the company".
Not only the luxury suffers, but also the car. The entire European automotive sector has been under pressure since the beginning of 2018 with a 20% drop. Ferrari (-1,2%) participates in the problems of the two sectors. Brembo (-3,4%) slips to the levels of July 2016. Exor -1%.
THE BANKS HOLD, LESS FUNDS IN THE BONDS
The banking sector was positive overall (+0,35%), which is also preparing for the flurry of tax increases. In August, Italian banks reduced their exposure to public debt securities by 9 billion. This is what emerges from the latest bulletin "Banks and money" of the Bank of Italy. But the system is still exposed on Bot and Btp for 372 billion.
Intesa rose by 0,77% and Unicredit substantially flat. Carige stands out (+8,16%). Banca Generali (+1,0%) expects to increase assets under management, also thanks to acquisitions.
ASTALDI, BONDHOLDERS GET ORGANIZED
Astaldi dropped 5,47% after failing to attempt an initial rebound. In the last 12 months he has lost almost 90%. It seems that the times for the merger with Salini-Impregilo are getting shorter. In the meantime, the bondholders who remained stranded after the company resorted to the blank agreement (890 million in total) met in a committee. The bonds have lost 65% of the nominal value in anticipation of the restructuring plan.
Heavy losses suffered by some pocket multinationals: Datalogic -5,1%, Ima -4,92%, Amplifon-3,9%.
