Nothing new on the central bank front. The ECB reiterated its readiness to increase the firepower of QE if necessary, both by the amount of purchases and by the duration of the stimulus. The recovery strengthens but is not enough to let inflation take off: "Domestic pressures on prices remain tepid overall and still do not show convincing signs of a sustained upward trend". After the Fed, therefore, the ECB too has launched a signal of continuity on the course already traced. And the Bank of England and the Swiss National Bank did the same during the day.
USA, SKIP NET NEUTRALITY. BATTLE ON THE TAX
With these messages archived, the markets turned their attention elsewhere. Particularly in Washington, the scene of the next battle for the approval of the tax reform, which the Republicans intend to pass before Christmas, but also the scene yesterday of an epic clash on Net Neutrality. The Fcc, the communications authority, has canceled the principle of equal access rights on the web. From now on, telephone operators (the owners of the tracks on which the network runs) will be able to give priority to some operators and slow down other "trains". The reform passed with 3 (Republican) to 2 (Democrat) votes. The novelty promises to have a profound effect on the future of the Internet but also on the evolution of the media on the day of the announcement of the century: the transfer of a large part of Rupert Murdoch's empire to Walt Disney for $66,1 billion. Fox shares rise by 6,5%, Walt Disney +2,8%.
BITCOIN STILL UP. NETANIAHU: BANKS WILL DISAPPEAR
In this context, the undaunted march of Bitcoin starts again, firmly above 17 dollars ahead of Ethereum, another electronic currency that set a new record price overnight (753,12 dollars) with a dizzying rise (a year ago it traded at 7,8 $.40). It is mainly the Japanese who go shopping who, after the prohibitions imposed by the Chinese authorities and the threats of the Korean ones, represent over XNUMX% of the buyers.
Meanwhile, cryptocurrencies have found an authoritative sponsor: Benjamin Netaniahu. “Are the banks destined to disappear? The answer is yes,” said the prime minister of Israel, a key country for the development of fintech. “When will it happen? Already tomorrow? And because of Bitcoin? This is the question mark,” added the leader filmed on YouTube while discussing with collaborators.
ASIA WEAK. SALT ONLY MUMBAI
The rise, for the fifth month in a row, of the Japanese business confidence index (to its 11-year high) was not enough to give momentum to the Bull on Asian stock markets.
In Tokyo, the Nikkei index (-0,1%) is about to close the last session of the week with a slight decline, as is Sydney. Korean Kospi advances (+0,5%). Yesterday Premier Moon visited Beijing, without however obtaining major reassurances from Xi Jingping on the Chinese commitment to keep Kim at bay.
The Hong Kong Stock Exchange loses 1%, the same variation for the CSI 300 index of the Shanghai and Shenzhen stock exchanges.
India, on the other hand, is on the rise, awaiting an electoral victory for the governing party. Mumbai's BSE Sensex index gains 0,7%. Prime Minister Narendra Modi's BJP is expected to have at least a hundred seats in the Gujarat state parliament, well over the 92 needed to have a majority. The rupee strengthens against the dollar to 64,1 from 64,3 the day before, the cross is at its highest since September.
ALSO BRAKS WALL STREET. LIVE OIL
The rise of Wall Street has also stopped, awaiting the outcome of the duel on the tax reform. The declarations of Senator Marco Rubio have curbed the upward push, threatening not to vote on the current text if there are no corrections on aid for minors.
The Dow Jones index falls by 0,3%, the Nasdaq -0,28%. S&P 500 index slips 0,41%
Oil prices are under tension, supported by the difficulties of the British oil pipelines. The WTI rises to 57,19 dollars (+0,8%), Brent to 63,35 dollars (+0,1%).
Eni up (+0,2%) in Piazza Affari (+2,8%). The company closed the sale to Exxon Mobil of a stake in a field in Mozambique: proceeds of 2,3 billion dollars, about 17,8 billion dollars in capital gains. With this operation, the debt falls to the lower end of the corporate indications. Goldman Sachs has raised the target price to 1,8 euros. Saipem -1,5%, Tenaris -XNUMX%.
BUSINESS PLACE, SALES DON'T STOP (-0,93%)
The second consecutive correction of banking stocks, accompanied by that of utilities, drove the European stock markets into red, which closed at the day's lows. Milan, as always happens in the most difficult days for the credit sector, was the worst stock market. The Ftse Mib index fell by 0,93%, to 22.191 points. The retreat below 22.450 points is the first concrete sign of weakness but, unlike Wednesday, the decline was general. Therefore Piazza Affari maintains the advantage accumulated since the beginning of 2017: +16% against +8,5% of the global Eurostoxx index.
The decline involved all the price lists: Madrid -0,82%, Paris -0,78%, Frankfurt -0,44%. The research institute Ifo has improved its growth forecast for the German economy in 2018, when GDP growth is expected to come in at 2,6%, from 2,0% in its previously indicated estimate. The GDP growth estimate for this year is confirmed at 2,3%.
RATES, BANK OF ENGLAND AND SWITZERLAND ALSO STOPPED
London -0,65%. the Bank of England Committee unanimously voted against a rate hike, keeping them at 0,5% and also leaving the quantitative easing program unchanged at 435 billion pounds. For the technicians of the English Central Institute, the macroeconomic data suggest a slowdown in the growth of the British economy in the fourth quarter of 2017, while inflation is close to its peak after rising to 3,1% in November.
Zurich was also down (-0,12%). The Swiss National Bank still believes ultra-accommodative monetary policy is needed despite the recent decline in the franc (-8% this year). The central bank maintained the target range for the three-month reference rate at -1,25/-0,25%, in line with expectations.
BUT THE ECONOMY IS GOING. MARKIT: A SUPER YEAR END
Eurozone companies are closing 2017 on almost seven-year highs, with demand recovering, prices rising and leading indicators pointing to an activity-packed start to 2018. Manufacturing companies scoring the best month in two decades of history of the survey and with an acceleration of activity also for the tertiary sector. "It's a super year-end… It's a solid picture of wide-ranging expansion," commented Chris Williamson of IHS Markit, the institute responsible for the survey.
THE SPREAD CLOSE TO 150 POINTS AGAIN
The BTPs closed lower, especially in the extra-long section, pending today's exchange operation into government bonds.
There was a certain amount of volatility in the afternoon. After falling to a low of 145 basis points during Draghi's press conference, the Btp/Bund spread quickly returned to the top. The Italy-Germany spread widened by 10 basis points, closing at around 150. The 1,80-year bond came close to XNUMX%.
In today's exchange, the sixth since the beginning of the year, via XX Settembre will offer a maximum of 2 billion BTPs over August 2039 against the withdrawal of five between Ctz, Ccteu and Btp with maturities between March 2018 and August 2019.
BAD CREDIT, WELL MANAGED
Banks are still under fire in the Milanese list. The confirmation, albeit expected, of the ECB's accommodating policy combined with the climate of pessimism on the Italian political structures has favored new sales in the credit sector. The index of Italian bank stocks fell by 1,4%, the European Stoxx sector -0,6%.
Intesa (-2,23%), Bper Banca (-1,98%) and Ubi (-1,64%) marked massive declines. Against the trend Unicredit (+0,4%).
Conversely, asset management was positive, benefiting from a situation of real returns on risk-free assets close to zero. Banca Mediolanum +1,3%, Azimut +1,4%.
Insurance is good too. Generali is up by 1%, UnipolSai by 0,7%.
VIVENDI DESERTS THE ASSEMBLY OF THE BISCIONE. TESTS OF UNDERSTANDING
Vivendi will not participate today in the Mediaset shareholders' meeting (-0,2%) convened to deliberate the change of the statute with the introduction of the increased voting list. The company headed by Vincent Bolloré has not deposited its package of Mediaset shares, equal to 25,753%. A soothing signal that could facilitate an agreement before the court hearing on December 19 for the dispute over Mediaset Premium. In the meantime, Nielsen has released the first indications on the advertising market in Italy: in October, Mediaset revenues fell by 7,9%.
Heavy Telecom Italia (-1,7%): in the absence of news on the separation of the network, the market is now discounting a postponement until after the elections.
LUXOTTICA, YES EU TO THE WEDDING WITH ESSILOR
Positive notes coming from luxury. Yoox Net à Porter (+2%) was the best among the Italian Large Caps. Luxottica +0,6%: according to Reuters, the European Union Antitrust has given the go-ahead for the merger with Essilor. The company also renewed its exclusivity deal with Tiffany.
EXPRIVIA BUYS ITALTEL, DIGTAL MAGICS IN THE FOOD
New decrease for Trevi (-5,43%) pending news on the standstill agreement.
On the other hand, Exprivia (+10,45%) stands out. The company subscribed 81% of Italtel, historical leader in the telecommunications market and today engaged in the development of technologies and solutions for digital transformation.
Digital Magics is highlighted in the Aim list (+4,1%), driven by the news of the entry into the team of the business incubator of SmartIsland, a startup that develops technological products and services for the agri-food industries.
