“Since it is possible that Torino will sell its bomber, Andrea Belotti, I submitted my curriculum vitae to Urbano Cairo: 282 matches in Flamengo, 72 goals in the Carioca championship and 72 goals for Brazil. It's a pity that some journalists took the trouble to verify that I am the same age as the Christ of Rio and that I only saw Flamengo on delayed TV”. Thus Mattia Feltri ironically in "La Stampa" on Giuseppe Conte's inflated curriculum, which remains the candidate chosen by the Di Maio-Salvini couple for the Palazzo Chigi armchair despite the embarrassing self-aggrandizement.
The gaffe further increases, if possible, the markets' concern over the possible appointment of Eurosceptic Paolo Savona as Minister of Economy. “On Monday – recalls Martin Wolf in the Financial Times – the spread on 30-year bonds between Italy and Germany reached 220 points for a yield of 340 points, still far below 2011, when it reached a maximum of 467 points for a yield of 7,7%. But, alas, things can be much worse."
ONLY CYPRUS RISKY THAN MPS CARD
Meanwhile, Monte Paschi's ten-year loan of 750 million placed in January at City at par (a further tranche of 700 million was planned) slipped yesterday to 91, i.e. a yield of 7,8% against the initial 5,375 . Among tier 2 bonds, high-risk issues, only those of Bank of Cyprus yield more. Not bad for a Treasury-controlled bank.
TESLA BRAKES NEW YORK, TOKYO -0,8%
Asian markets were mixed this morning on the wave of uncertainty over the future of the agreements between the US and Beijing (Boeing lost 2,4%) and on the outcome of the forthcoming Singapore summit between Kim and President Donald Trump who held back yesterday evening the closure of Wall Street: Dow Jones -0,72%, S&P 500 -0,31%, Nasdaq -0,21% which was weighed down by the new crash of Tesla (-3,3%) due to the problems that emerged on the brakes of model 3.
The Tokyo Stock Exchange is down this morning by 0,8%, while the yen strengthens against the dollar to 110,5. Hong Kong loses 0,9%, the CSI 3OO index of the Shanghai and Shenzhen stock exchanges loses 0,7%. The South Korean Stock Exchange is at parity, with India down very slightly.
OIL AT 79 DOLLARS, STILL ON SAIPEM
Brent oil is trading this morning in Singapore at 79,1 dollars a barrel, down 0,7%, but not too far from the highs of the last 4 years. Reuters wrote yesterday evening that OPEC does not like the oil price at these levels, and for which, also in the next few days, it could announce a review of the constraints on production in force. The cartel of producing countries would aim to bring prices back to around 75 dollars, a level that would not have serious negative effects on the economies of client countries. In Piazza Affari the strength of crude continues to push Saipem (+2,55%); less lively Eni (+0,49%) and Tenaris (+0,06%).
THE TURKISH LIRA LANDSLIDE CONTINUES
The fall of the Turkish lira continues, down to 4,75 against the dollar, a level never seen in history. In three and a half years the dollar has doubled in value against the lira.
Gold is little moved, on the lows of 2018 at 1.292 dollars an ounce.
FRANKFURT RECOVERS EIGHT POINTS ON THE MARKET PLACE
Today, in addition to the latest political news from Italy, the markets today will be looking at US and Eurozone flash PMI data. At 9,30 some data on industrial activity in Germany is published: confirmation of the slowdown that has been underway for a few months is expected, even if the fall of the euro (-5% in the last month, this morning at 1,1756 against the dollar ) may have favored a mini recovery.
Milan accelerated in the final managing to close up by 0,54% a day marked by volatility, made up of continuous reversals between attempts to rebound and moments of greater tension. Closer to the closing, then, new indiscretions on the developments of the political scenario caused the spread to decrease and bring the stock exchange to the maximums for the session, while remaining at the minimums since last April 12th.
BARCLAYS HUNTING FOR A PARTNER
A positive sign also for the other European stock exchanges, which appreciated the attempts to reach an agreement on the trade front between the United States and China and closed up: Paris +0,27%, Madrid +0,86%.
London up by about half a percentage point. This morning the Financial Times writes that Barclays is actively seeking to merge with another bank: negotiations would have been entered into with Standard Chartered and others.
In Frankfurt, the Dax index (+0,84%) reached its highest levels since the end of January, taking advantage of the good momentum on Wall Street and the crisis in Piazza Affari. In just one month, the German stock exchange has inflicted a gap of about 8 percentage points on the Milan stock exchange. Since the beginning of the year, however, it has still lagged: +2% against +6%.
In 2018, Italy's gross domestic product will grow by 1,4% in real terms, after 1,5% in 2017. This is the Istat estimate contained in the Outlook for the Italian economy that has left the forecasts unchanged of November. But the risks of protectionism and the increase in crude oil prices weigh heavily.
ECONOMISTS IN THE FIELD AGAINST THE MACRON PLAN
A group of 154 German economists, including Juergen Stark, a former member of the board of the ECB, who left the institute in controversy with the choices of monetary policy, and Hans-Werner Sinn, already at the head of the Ifo, declared against the eurozone reform proposals drawn up by French President Emmanuel Macron, branding them as "highly risky" and emphasizing how the blockade of the single currency should not become a union where the financial burdens are shared.
THE SPREAD SLOWS DOWN BUT NOT TOO MUCH: 177 POINTS
New session characterized by volatility for the Btp, which only partially recovered after the shower of sales which had raised the spread against the Bund on Monday to 190 points. Rumors on the yellow-green coalition's intention to bet on Paolo Savona as economy minister weighed heavily. The gap stopped at 177 basis points, against the 164 of Friday's closing.
The spread between the Italian 90-year bond and its Spanish counterpart also retraced from yesterday's peaks to around 2012 basis points, the highest since February 88,5, which however remains around XNUMX basis points.
CHINA GIVES CARS A PUSH: FCA +1,6%
The automotive sector shone on the European lists (+1,03% the sector index) supported by the news according to which China will cut import duties to 15% from 25%. The measure gave wings to BMW +2,6%, Daimler +1,5% and Porsche +2,8% as well as the Indian Tata Motors (+4%), owner of Jaguar.
In Piazza Affari, Brembo leaps forward (+3,3%). Fiat Chrysler (+1,61%) joins the Agnelli team. HSBC announced that it has started the coverage with a Buy judgment and a target price of 23 euros. Exor is also up (+1,22%). Unchanged Cnh Industrial. Ferrari lost 0,7%.
IN RECOVERY THE MANAGED. THE AZIMUTH PACT STRENGTHENS
Asset management is recovering, already involved in the slowdown in financials. FinecoBank rebounds (+3,26%). Azimuth +2,38%. Timone Fiduciaria, which brings together the members of the syndicate agreement, has concluded a loan agreement to complete the collection of the resources necessary to strengthen the stake, equal to approximately 15%, in the asset management group. Poste Italiane (+0,81%) and Banca Generali (+0,26%) also find the plus sign.
The rebound of the banks - the basket ended trading with an increase of 0,74% - a consequence of the rise in the spread, pushed the list into positive territory. Unicredit +2,43% better than Intesa +0,68%. Well Ubi (+2,31%), Mediobanca (+1,68%) and Bper (+1,61%). Creval recovers (+5,36%) after the crash on the eve.
Among the smaller banks, the decline of Banca Sistema (-3,52%) continues, which began after the publication of the government contract, which contains a reference to the forced recovery of credits which worries financial service companies.
Tonica Banca Intermobiliare (+4,53%) on the news that the board of directors deemed the price of the mandatory total takeover bid promoted by Attestor Capital to be inappropriate.
Among the main stocks, the progress of Italgas (+1,75%) and the achievements on Moncler (-2,7%) and Prysmian (-1,66%) should still be highlighted.
SAN DONATO PUSHES RETELIT, COIMA DOES SHOPPING AT UNICREDIT
Retelit skyrockets (+9,93%). best headline of the day: galvanized by the news of a contract with the San Donato hospital group worth 11 million (6 years) for the development of an integrated solution for the renewal of IT systems.
MolMed also made a big splash (+3,3%). Mediobanca confirmed the Outperform recommendation, a target of 0,68 euro which at current prices implies an upside potential of approximately 40%.
Coima Res (-0,1%) stipulated a preliminary purchase contract with Unicredit for a property in Milan, the Pavilion, worth 45 million euro. The completion of the transaction will take place at the end of the year.
Still under fire Astaldi, -3,3% in the final stages. The stock was weakened by the news that the shareholders' agreement with the Japanese of IHI provides that the company must obtain payment of "at least" 2018 million euros by the end of 185 for the sale of the stake in the concessionaire of the Third Bosphorus Bridge in Turkey otherwise the Japanese group will be able to cancel the commitments undertaken and transfer its stake (18,2% of the capital) to third parties or exercise the put option against the Astaldi family, therefore forced in that case to buy back the shares.
