TELECOM AND INTESA, SHORT EXPECTED IN THE BUSINESS AREA. UNDER THE POLITICAL STORM, THE BTP AUCTION IS UNDERWAY
Italy is under political check: the Milan Stock Exchange records the uncomfortable situation with a significant drop: -1,2% to 17.872 points, however recovering from the lows (17.691) thanks to the push coming from Wall Street.
It is in this context that the Treasury is preparing to complete the triptych of end-of-month auctions this morning with the most significant offer: 5- and 10-year BTPs for a total of 5-6 billion.
In particular, from 2,5 to 3,0 billion of the third tranche of the 5-year BTP 1/12/2018 with a 3,50% coupon and as many billions of the fifth tranche of the 10-year BTP 1/03/2024 are on offer. The Italian 2023-year May 4,33 benchmark was trading up yesterday evening (4,23% against 2024%) the new March 4,48 4,37-year at auction today (soon to become the new benchmark) scored 4,33% from 31, 2023%, against XNUMX% of the Spanish benchmark (maturity XNUMX October XNUMX).
The political turmoil also affected the government bond market: the 10-year BTP yield rose to 4,33% and the spread widened to 250 (+9 basis points). In the morning, the Treasury placed 8,5 billion euro of three-month Treasury bonds at a yield of 0,781%, down from 0,866% on the previous issue at the end of August.
TOKYO, WELCOME BACK INFLATION. WELL NIKE IN NEW YORK
In balance Tokyo, moderate gains on other Asian lists. But the month of September, once the tapering tensions have passed, closed with a positive balance: the Asia Pacific index recorded its best month for 3 years from now.
Even more important, inflation is being reviewed in Japan: +0,8% in Tokyo, the highest figure since 2008. This is the sign that Abenomics is beginning to bear fruit. Meanwhile, yesterday, the commission of wise men of the Govenment Pension Investment Fund advised managers to increase the exposure of the pension giant (1.230 billion dollars under administration) on equity investments.
Wall Street climbs again after five negative sessions thanks to the positive data on unemployment benefits and GDP. The Dow Jones index rose 0,36%, the S&P 500 0,21% and the Nasdaq 0,7%. Nike's quarterly data exceeded the estimates: profit for the period at 0,86 cents (0,78 estimates) and revenues of 7,8 billion against a forecast of 6,97 billion. Facebook stock has crossed the threshold of $50 per share for the first time in its history on Wall Street.
New jobless claims were only 305 last week, down from 310 the previous week and below economists' expectations of 325. No news from the housing market, where August pending home sales fell 1,6%, roughly as expected.
Investors' attention remains focused on the debate linked to the reduction of the US government deficit. According to public administration calculations, the United States will have only 17 billion dollars on hand on October 30 and may not be able to pay its bills. Quiet day for the European Stock Exchanges, excluding Milan. London closed up 0,2%, Paris -0,2%, Frankfurt unchanged.
TLC, THE MARKET HOPES FOR THE SUPER-OPA LAW
Bucking Telecom Italy which closed up 4,1%, thus allowing the index to limit the decline. The rebound is due to the statements of Treasury Undersecretary Alberto Giorgetti, who said that the government, in addition to introducing the golden power already today, is thinking of changing the current regulations on takeover bids in the run-up. “Companies could define in the articles of association a threshold to trigger the mandatory takeover bid of less than 30%”, said Giorgetti.
Finmeccanica it closed down 1,3%: the political controversies over the transfer of control of Telecom Italia to Telefonica make it more difficult to sell Ansaldo Energia, Ansaldo Breda and Ansaldo Sts to foreign investors. Ansaldo Sts is down 1,6%.
THE BAZOLI-CUCCHIANI DUEL ON SUNDAY
But attention shifts to the banking world and in particular to Bank Intesa -3,7% in view of the meeting which, on Sunday, will have Giovanni Bazoli and CEO Enrico Cucchiani as protagonists, who could leave the operational leadership of the bank due to disagreements on several fronts with Bazoli, chairman of the supervisory board. But the political turbulence has also affected the other banks. Unicredit fell by 2,6%, Banco Popular -3,4%.
Asset management is also down: Azimuth -1,6% General Bank -4% Mediolanum -3%. Mediaset it lost 1,3%. Industrial stocks are also down: Fiat -2% StM -0,9% Pirelli -3%. It was saved +1,38% after the news of the stipulation of the proportional partial spin-off deed. The effects will take effect from 1 October and from the same date trading of Wdf shares will begin on the Mercato Telematico Azionario.
