Asian price lists welcome Donald Trump's arrival in Hanoi for a meeting with "dear friend Kim". In recent days, the president is aiming for a double success, both on the Korean nuclear front and on the tariffs front with Beijing. Wall Street, before exulting, waits for concrete results. In the meantime, the measured and cautious words of Fed Chairman Jay Powell dominated the scene as he reiterated in the US Senate that the economy is still going strong, even if, due to international tensions, it is less brilliant than a few months ago .
The diagnosis of Philip Lane, the next chief economist of the ECB, is not very different: low rates and a lot of patience is the obligatory path for Europe, waiting for Theresa May to take note of the evidence and give in to the postponement on Brexit. Finance ministers take advantage of the "calm" to fill up on the markets. Today the Italian Treasury will sell out with a new ten-year BTP.
CHICAGO IN TILT, LITTLE MOVE WALL STREET
Here is the picture of the markets, disturbed during the night by the trading blackout at the CME, the Chicago Mercantile Exchange, the most important derivatives and options market on the planet:
Shanghai (+0,7%) is close to its highest level since June 2018, close to the psychological threshold of 3.000 points. Hong Kong +0,5%, Seoul +0,3%, Mumbai +0,7%. The stock market of Vietnam, the country hosting the summit, is up slightly. In Tokyo, the Topix advanced by 0,2%. Asian currencies moved little.
The US markets were almost flat at the end: Dow Jones -0,13%, below the 2.800 point threshold, S&P 500 -0,08%. NASDAQ -0,07%.
Brent oil traded this morning at 65,6 dollars a barrel, +0,5%, yesterday closing +0,7%.
Positive yesterday Saipem, up by 0,9% below the highs of the session, benefiting from Berenberg's start of hedging with a “buy” and a target of 5,5 euros. Eni + 0,2%.
POWELL HOLDS BACK THE DOLLAR, STERLING SUPERSTAR
On the currency front, the dollar weakened against the euro, to 1,138 after the Powell hearing. But the focus is on London.
The pound is crushing the euro, which fell to its lowest level since May 2017 at 0,857. Markets acknowledge that Brexit will be a long and complicated affair, the hypothesis of an agonizing separation at the end of next month is close to zero. Prime Minister Theresa May had to give in to the hypothesis of a "short and limited" postponement of Brexit with respect to the date of 29 March. She announced it in the House of Commons, adding that she wanted to put this option to a vote if "by 12 March" her divorce proposal, currently under consideration by the EU, was rejected again.
Meanwhile, the Labor Party, the UK's main opposition party, has said it is ready to back a second Brexit referendum. More than aiming at a rejection of Brexit, in the mind of the leader Jeremy Corbin, the new referendum would have the objective of "avoiding the harmful Brexit of the Conservatives".
MARKET PLACE TO NEW HIGHS FROM OCTOBER
The European stock markets moved little, the fever for debt securities rises on the day of the report cards of the EU Commission: they discount the warning on Italy.
Piazza Affari +0,11% to 20.459 points, the highest since October, closed the session slightly up in the wake of the recovery in the afternoon of the stock exchanges reinvigorated by the news that emerged on the Brexit front.
Modest gains also for Frankfurt (+0,32%) and Paris (+0,13%). Madrid +0,26%.
The moment of grace of the secondary market also continues, which started with the Fitch report card: the Btp / Bund spread fell below 260 points from 280 on Friday.
Today the Treasury will issue up to 7,25 billion euros of new paper, including 3,25-4 billion of the new 2029-year BTP August 3, coupon 2,88%. The new security, on the gray market, yesterday offered a yield in the 2,60% area against an issue rate of 2028% (gross of commission) of the current December 2018 benchmark, the lowest since April XNUMX.
As regards the other bond at auction, ie the five-year, on the secondary market it traded with a yield of 1,63%, against 1,49% of the placement at the end of January.
The auction yield of the 2018-month Treasury bonds, allotted for 6 billion euro, also recovered from the lows of April 6, to -0,007% from -0,025% in January.
FINCANTIERI AT FULL SAIL, PIAGGIO RUBBER
In Piazza Affari it was highlighted Fincantieri which closed 2018 with Ebitda at 414 million, up 21% on 2017 and intends to propose a coupon of one cent per share. In the fourth quarter, Ebitda stood at 133 million euros, twenty million euros more than consensus expectations. Kepler-Cheuvreux upgraded the judgment to Buy from Hold, bringing the target price to 1,30 euros from 1,15 euros.
Also noteworthy is the rally of Piaggio +6,1% on the basis of the positive 2018 results and the encouraging outlook for 2019. Kepler Cheuvreux raised the target price to 2,60 euros from the previous 2,40 euros. Mediobanca confirmed the Outperform rating (Interesting) on the stock, with a target price of €2,50. Yesterday the recommendations of Equita Sim and Banca Akros were released, respectively Hold and Buy, with target prices of 1,9 and 3,1 euros.
FERRARI AT THE TOP, FCA INVESTS IN THE USA
It advances in the main basket Ferrari +1,5% to 113,85 euros, new high since October (+8% in 12 months). Yesterday the board of directors proposed a dividend in favor of the holders of ordinary shares of 1,03 euros, corresponding to a total distribution of around 194 million euros.
Brake instead Fiat Chrysler -0.7%. The Melfi plant, which produces the Jeep Renegade and 500 X, will be shut down for 16 days next month due to weak demand. On the other hand, investments have been confirmed for the Alfa Suv in Pomigliano where the shifts for the Panda are increasing. Meanwhile, the company focuses on the US market. Yesterday it agreed to invest $4,5 billion in five of its Michigan plants, "and to work with the City of Detroit and the State of Michigan to build a new plant in the greater Detroit area."
Down, always in the automotive sector, Sogefi -3,23% after closing 2018 with a net profit of 14 million euros, down from 26,6 million the previous year. Ebitda amounts to 190 million euros, down from 206,9 million in 2017, and the board does not intend to distribute dividends, as already happened last year. Equita Sim downgraded the share to "hold" with a target price reduced by 16% to 2,1 euro.
UBI REOPENS THE BANK BONDS MARKET
Banks, supported by the performance of government bonds, consolidated Monday's rally with a rise in the sector index of 0,17%. Purchases focused on Bpm bank, pink jersey +3,6%.
Ubi +1,9% issued half a billion euro of "Tier2" subordinated bonds, with a 5-year maturity: orders exceeded the quantity offered by 1,4 times.
Shopping continued Creval (+2,5%) with sustained volumes even if lower than those of the previous day, after the change in management.
General Bank announced last night that within two years, one tenth of assets under management/administration will be in sustainable investment products. Translated into figures, a little over seven billion of total assets will be in ESG instruments.
Bene Diasorin (+1,8%). Among the utilities A2A drops by 0,7% after the results of 2018: Ebitda growing by 3% to 1,23 billion euro. Excluding non-recurring components, the progression stands at 5%.
Negative Tim (-1,2%) And stm (-1.2%) in line with the declines of the respective sectors in Europe.
biesse slips more than 7% after 2018 results and three-year plan to 2021.
