Flat calm on the markets awaiting the last appointment of the week: US labor market data. Forecasts speak of an increase of 180 thousand units, which could give a boost to the dollar in the afternoon. The situation in London is quite different. The UK's decision to leave the EU will cost 250 jobs, warns the Bank of England, explaining yesterday's choices: rate cut (expected), relaunch of the Qr (less discounted) and purchases of "good quality" corporate bonds. Too little, accuse the 35 economists led by Sir Robert Skudelsky, who have sent an open letter to the government, published by the Guardian, invoking tax cuts and aid to consumption.
For now, as has already happened in Japan, the central bank and the government do not feel like adopting a strategy inspired by helicopter money, but the issue is already on the table and will take center stage at the next governors' meeting in Jackson Hole, Wyoming, of bears.
FLAT WALL STREET, OIL RISES AGAIN
In the meantime, the price lists have reserved, for once, few emotions. The US Stock Exchanges closed at parity: Dow Jones and S&P 500 -0,02%, Nasdaq +0,13%. Oil returned to growth (+2,7%) after five sessions of decline: Brent this morning at 44,06 dollars a barrel, Wti at 41,74. Chevron stable despite announcing its intention to sell assets in Asia, particularly in the upstream sector, for at least 5 billion dollars. Energy companies are advancing in Europe (Stoxx +1,2%): Eni gains 0,2%, leap by Tenaris (+2,9%).
Quiet closing this morning also for the Asian markets. The Nikkei index gains 0,3% in Tokyo, the yen trades at 101,25 against the dollar, confirming the gains achieved after the disappointment of an economic maneuver judged too timid. Hong Kong recovers (+1,3%) after a challenging week marked by typhoons.
LONDON: SUPER BAG, DOWN STERLING AND GILT. MILAN +0,6%
Positive day for the European stock exchanges, which ended the session with discrete increases, supported by the rate cut by the Bank of England. In Milan, the FtseMib index marked an increase of 0,6%, to 16.236 points, after accelerating to a maximum of 16.327 points. The Paris Stock Exchange gains 0,5%, Frankfurt +0,5%. Madrid (+1,34%) did better than Milan thanks to the performance of the banks.
Great movements in the City after the moves of the Bank of England: the Ftse100 index of the London Stock Exchange has risen by 1,52%. The pound weakens and loses 1,5% against the dollar (at 1,312) and 1,4% against the euro (at 1,178). Yields on government bonds also fell sharply, reaching new all-time lows: the 0,643-year Gilt slipped to XNUMX%.
UNICREDIT RAISES ITS HEAD, MPS NO
The biggest increases on European lists come from banks (Stoxx of the sector +1,3%). Banco Santander (+2,78%) and Banco Bilbao (+2,54%) shine in Madrid. In Piazza Affari another drop for Monte Paschi (-2,1%).
Unicredit closed the session up 2,2%, at 1,842 euros. After the second quarter results announced yesterday, brokers adjust their target prices, all downwards, but confirm the recommendations. In detail, Natixis, Kepler Cheuvreux and Oddo confirm the Buy judgment. The new target prices range from 4,9 euros for Natixis to 3 euros for Kepler Cheuvreux. Oddo lowered it to 4,5 euros from 5,6 euros. Ubs confirmed the Neutral judgment and reduced the target to 2,05 euros from 2,1 euros.
Mediobanca's conference call on the results for the 2015/16 financial year is scheduled for this morning. Banco Popolare and Ubi will also hold meetings with analysts to comment on the financial statements.
BPM: MERGER WITH BANCO POPOLARE WITHIN THE YEAR
"The merger with Banco Popolare will take effect from 2017 January 1,6", announced the CEO of Banca Popolare di Milano (+2017%), Giuseppe Castagna, in the call with analysts. The institute that should arise from the aggregation between the two institutes "from the beginning of XNUMX will have to be able to leave and start the engines". Bpm closed the first semester with a net profit growing by 2,6% to 158,1 million euro. The figure for the second quarter alone shows a result of 109,8 million, higher than both the consensus fixed at 75 million and the same period last year, equal to 86,5 million.
As for Banca Pop. Emilia (+0,5), the first half closed with a net profit of 64 million, from 73,2 million last year. But the bank records a strong growth in Core Tier1 to 14,49% compared to 11,55% at the end of March. The strong increase is due to the institution's first use of internal models for risk requirements which had a positive impact of around 300 basis points.
GOOD COLLECTION FROM ASSETS: FINECO +2,6%
Asset management stocks were positive: Fineco (+2,6%) achieved net inflows in July of 481 million (+31% on the previous year). Banca Mediolanum (+2,2%) and Azimut also did well, both after the accounts. Accounting season also for Unipol (+2%) and UnipolSai (-0,2%). "In this strategic context - said Carlo Cimbri, CEO of Unipol and chairman of UnipolSai - I confirm the willingness to participate with our bank in a banking group that has greater efficiency on the market which also derives from the prerequisite size".
FCA HOLDS DOWN, MEDIOBANCA PROMOTES THE SAMSUNG OPERATION
Fiat Chrysler stabilizes: -0,9% after the leap of 8% the day before, triggered by rumors about the interest of the Korean Samsung for the subsidiary Magneti Marelli. The operation could be closed within the year and have a value of more than 3 billion dollars (2,693 billion euros at current exchange rates). Here is the comment from Mediobanca Securities: "Demonstrating what we have always said: FCA is the best car manufacturer to have in the portfolio as the consensus is biased downwards and many assets are not watched with sufficient attention by the market" .
Cnh Industrial (+1,4%) announced its intention to propose to bondholders, through its subsidiary Case New Hollande, the cash repurchase of up to 450 million dollars of guaranteed bonds 2017 coupon 7,875%, the outstanding amount of which is equal to one and a half billion. In parallel with the buyback operation, the company prepares the issue of new unsecured bonds.
SAFILO FLIES, RCS SALE IN CAIRO FORMAT
Also noteworthy was the good rise of StM (+3,5%), in line with the sector, and of Yoox (+2,7%), which released its results just after the closing of the Stock Exchange.
Highlighting two stocks outside the main index:
– Safilo gains 15% after announcing better-than-expected results last night. Kepler Cheuvreux raised the recommendation to Hold from Reduce and brought the target price to 7,3 euros from 6,6 euros.
– Rcs Mediagroup +3,8%: Kepler Cheuvreux raised the target price to 0,77 from 0,7 euro (rating hold) after better-than-expected accounts. The liquidation of CEO Laura Cioli amounts to 3.5 million.
