The latest star on the American Stock Exchange is undoubtedly Cathie Woods, 66 years old but doesn't look them, soul of Ark Investments, the company that last year smashed all performance records thanks to its investments in technology. But Miss Woods is above all the financial handmaid of Elon Musk, the right arm of "TechnoKing", as he defined himself. Well, yesterday Cathie Woods took the field by revising the estimates on Tesla. The stock, currently around $655, according to her it will rise to $3.000 by 2025. And traders believed it without hesitation: Tesla traveled on the Nasdaq with an increase of more than 6%, only to limit its gains in the final. In short, it is true that a rotation is underway on Wall Street, but tech stocks show that they have strong shoulders. Yesterday the Nasdaq rose by 1,23%, against the Dow (+0,32%) and S&P (+0,70%) in anticipation of the new pitched battle of President Biden: the $3 trillion Roosevelt package for infrastructure, environment and technology that will soon face Congressional scrutiny. We will understand something more tonight, after the hearing in the House of Jay Powell, president of the Fed, and, above all, of Janet Yellen, who leads the Democratic spring from the Treasury.
Meanwhile, profit-taking is taking place in Chinese markets. The CSI 300 of the Shanghai and Shenzen lists loses 1,3%: from the highs of 2021, the reference index of shares in China loses 14%. Hong Kong's Hang Seng dropped 1,2%.
Baidu made its debut on the list tonight: for the Chinese Google it was a weak debut, the stock opened slightly up and then lost strength, reaching parity. This is the first return home of a Big from Wall Street.
The EU, together with the US, has also approved sanctions against China for the repression of the Uighurs. Four party leaders ended up in the crosshairs. Beijing's reaction was immediate, which in turn launched sanctions against 10 people and four European entities accused of "seriously damaging China's sovereignty and interests".
Tokyo's Nikkei is down 0,2%. The Turkish crisis has partially returned after Erdogan's reassurances on the Central Bank's orientation. The Turkish lira dollar cross, which flew yesterday close to the highs for the period at 8,5, was little moved this morning at 7,85.
Not just Tesla. The recovery of the titles of the technological list has invested numerous Big, starting from Microsoft (+2,5%), which has set its sights on Discord, a technological platform for exchanging small videos that is great among those who spend many hours playing games . The price that the parties are considering would be in the order of ten billion dollars.
Apple gained 2,8% and Amazon 1,2%. Goldman Sachs has published a report dedicated to the protagonists of the 2020 rally. Analysts believe that there are no grounds for talking about a bubble, because the rise in prices and valuations has been gradual and with few excesses. On the contrary, there are serious economic reasons to justify the valuations of companies that have been the protagonists of the digital revolution for years.
The 1,6857-year T-bond slows down: 1,732%, against a maximum of 61%. WTI oil is trading at $1 a barrel, down XNUMX%.
TURKISH STORM HAPPENS ON THE BBVA IN MADRID
The much-criticized sales policy conducted in Unicredit by Jean-Claude Mustier, which at the beginning of 2020 led the Bank to fall below 20% of the Turkish Yapi Kredit, proved to be a wise choice yesterday. The Milanese bank awaiting the arrival of Mario Orcel limits the damage (-1,1%) in the face of the Turkish lira crisis, whereas the French Bnp Paribas (38.4 billion dollars exposure, more than double that of Italian banks) and especially the Spanish BBVA (83,3 billion, -6,88% at the Bolsa de Madrid) are paying a much higher price. Milan thus dodges the only torpedo on a relatively quiet day, in which the Bundesbank sends the signal you would never have imagined: Germany, held back by the pandemic, will have to make more debts this year and in 2022 will suspend the penalty rules again tax. But it will be, to quote Mario Draghi, "good debt".
BUSINESS PLACE +0,26%. VOLKSWAGEN STILL IN THE RALLY
Piazza Affari appreciates by 0,26%, to 24.262 basis points. Frankfurt is slightly better (+0,29%). Volkswagen's race continues (+6,9%). In the rest of Europe London did well (+0,27%), Paris was down (-0,49%).
KERING OFFER ON RICHEMONT (CARTIER)
Kering loses 2,4% on the wave of rumors of a bid for control of the giant of "extreme luxury" Richemont (+4%), which includes, among other things, Cartier and Van Cleef & Arpels.
In deep red Madrid (-1,54%), overwhelmed by sales on BBVA, a bank that makes about 14% of its profits in Turkey.
ISTANBUL LOSES ALMOST 10%. ALSO SPAIN IN RED
In the morning, Istanbul lost almost 10% and the Turkish lira plunged as much as -17% against the dollar due to the dismissal of Naci Agbal, in office for less than 5 months, after he had raised rates more aggressively than the expected. In the afternoon, an easing note from Ankara favored the recovery at -7%.
ECB INCREASES PEPP PURCHASES
Last week the ECB increased its purchases of securities under the PEPP program to 21,05 billion. This is the first tangible action by Frankfurt after Christine Lagarde, last March 11, had announced an increase in the pace of purchases in the second quarter of the year to counter the increase in yields in the euro area in the wake of the Treasury.
The spread between Italian and German ten-year bonds was stable, closing unchanged at 97 basis points. The yield of the BTP closes at 0,65%.
German Bund down -0,31%. Der Spiegel reports that Germany is considering increasing 2021 emissions by about 70 billion, to 250 billion euros.
SHORT TERM BTPs MAKE THEIR DEBUT. THE CTZ DISAPPEAR
In the auction next Thursday, March 25, the Ministry of the Economy will offer investors for the first time the new instrument called "Btp short term", together with the usual reopening of the ten-year indexed.
A note from the Treasury explains that this new type of securities, identical to nominal BTPs, may have a maturity of between 18 and 30 months and will entirely replace the placements of CTZs, suspended starting from this auction.
Therefore, the new securities of the Btp Short Term segment, as well as the reopenings of the same, will always be offered together with the Btpei on the first auction day of the month-end auction cycle. The new security, with maturity on November 29, 2022, will be offered for an amount between 3,5 and 4 billion euros. The Btpei expiring May 15, 2030 was also auctioned on Thursday, offered for an amount between 750 million and 1,25 billion.
FERRARI SUPERSTAR AT PIAZZA AFFARI, FOLLOWS STM
European equities closed the session with little movement on a day characterized by moderate calm. Some industrial values have driven the list. The pink jersey belongs to Ferrari (+4,88%), which also leads Exor upwards (+2,06% on the eve of the accounts). Stm also stood out (+3,9%) in the wake of Infineon's performance in Frankfurt on the buy of Crédit Suisse and entry into the Eurostoxx 50. Amplifon +2,07%.
UNICREDIT LIMITS TURKISH DAMAGES, BPER MISSES
Among the banks, Unicredit limits Turkish damages (-1,1%). Bper also continues to fall (-2,2%), already weak on Friday after the words of Carlo Cimbri, CEO of Unipol, the main shareholder of the Modenese bank, who had cooled the hypotheses of a merger with Banco Bpm, stable after a start in muted. Mediobanca Securities believes that M&A is “the main theme in Italy for almost all medium-sized banks, including Bper. We see a potential merger between Bper and Bpm creating benefits for all parties involved from an industrial and financial point of view”. Fineco Bank +1,6%.
POSTE ITALIANE, RAIN OF BUY
Positive start to the week for Poste Italiane: the share recorded one of the best performances with an increase of 1,6%, to 10,515 euros. In fact, the positive assessments of analysts continued. Equita Sim raised its target price to 12,6 euro, confirming its buy rating.
Target price also increased by Mediobanca Securities, which brings it from 11 to 11,7 euros, and by Kepler (from 11 to 11,5).
STILL DOWN TELECOM ITALIA (-1,3%)
Telecom Italia is back down again (-1,3%) after the crash on Friday (-7,3%) due to the uncertainty linked to the single network project. Equita writes that “there are few new insights into the single network, but the prevailing interpretations do not justify Friday's reaction”.
The energy sector is slowing down, in the wake of the drop in oil prices on fears that the new restrictive measures in Europe to stem the pandemic will slow down the recovery in demand. Eni sells 0,1%; Saipem, which was awarded a contract worth over one billion dollars in Qatar, fell by 0,9%.
WEBUILD FLY, JUVE SUFFERS. DE LONGHI GOES SHOPPING
Webuild leap (+3,03%) after announcing the accounts for 2020 and giving new indications for 2021. According to Equita, "the operating results are below expectations but consistent with the guidance, and the net financial position is better than estimates".
Juventus suffers (-0,9%) afterwards the sensational home defeat against Benevento and the end of the remaining scudetto ambitions.
Strong purchases on De Longhi (+5,6%) after the purchase of the 60% not yet owned by Eversys. Mediobanca Securities believes that “the acquisition has a strategic reason and was completed at fair multiples for an asset that focuses on the professional coffee machine niche”.
