The Omicron variant weighs on the financial markets at the start of the short week ahead of Christmas. The shingle that rained yesterday on President Biden contributes to spoiling the mood: Democratic Senator Manchin, decisive for the president's parliamentary majority, announced via TV that he will vote against the 2 trillion dollar intervention plan on school, health and the environment presented by the White House. A new problem for the White House already grappling with the growth of Omicron, the Ukrainian crisis and the increase in prices. Following this crucial defection, Goldman Sachs cut its US GDP forecast for the first and second quarters.
– 1,36-year Treasury Notes at 3%, – XNUMX basis points.
The S&P500 index future is down 0,8%.
The dollar index, which rose strongly on Friday, reached the highs of the last ten days of 96,6. Euro-dollar cross at 1,125.
LONDON AND HOLLAND UNDER SIEGE
Not a Christmassy atmosphere even in Europe, in the face of the squeeze imposed by Omicron. In the United Kingdom, another 12.000 positive cases of the new strain of the virus were counted yesterday, out of a total of 82.000: Health Minister Sajid Javid said that all possible measures will be used to stop the new wave, including total isolation .
New blow to the leadership of Boris Johnson. David Frost has resigned as Britain's chief Brexit negotiator citing differences of views with the premier's positions. Foreign Minister Liz Truss will now take care of the negotiations with Brussels.
A semi-lockdown has entered into force in the Netherlands and Denmark has announced that it will close theatres, cinemas and amusement parks for a month, while a 23pm curfew will be imposed on bars and restaurants.
ASIA WEAK. CHINA CUTS RATES
Asia is also weak: Tokyo's Nikkei index is down by 2,2%. Hong Kong's Hang Seng -1,3%. Kospi of Seoul -1,5%. BSE Sensex of Mumbai -2%.
The CSI 300 index of the Shanghai and Shenzen stock markets closes at -0,8%. The Central Bank of China (Pboc) has cut the Loan prime rate (Lpr) for the first time in 20 months, between the preferential rates offered by commercial banks to the best customers and a reference for the rates applied to other loans, a measure to increase liquidity. Meanwhile, S&P declared the insolvency of brick and mortar giant Evergrande.
Türkiye, LIRA IN FREE FALL
The week begins with a new fall in the Turkish lira, the dollar-lira exchange rate reaches a new record at 17,2. Tonight the President of the Republic Recep Erdogan anticipated other cuts in the cost of money.
The Istanbul Stock Exchange halted trading on Friday as the index slid 5% after the latest cut in the cost of borrowing.
Gabriel Boric, an exponent of the left, won the elections in Chile by largely overtaking José Antonio Kast, an exponent of the extreme right, son of a Pinochet minister.
Oil is down: WTI -3% to 68,7 dollars a barrel.
ITALY, FINAL RUSH FOR THE MANEUVER
In Italy, the final rush for the Maneuver is underway, which arrives well behind schedule without having yet completed the examination in the Senate Budget Commission. At this point, the examination and vote of the amendments and the subsequent passage in the plenary should take place this week, with a purely technical passage in the second branch of Parliament after Christmas to obtain the green light before the end of the year.
FROM BIELLA TO WALL STREET, A 3,2 BILLION LISTING
Made in Italy is experiencing a historic day on Wall Street today. The Zegna group makes its debut on the US list, having landed on the listing through a Spac promoted by Carlo Bonomi's Investindustrial, under the direction of Sergio Ermotti. “I hope to set an example of being brave and proud of Made in Italy. By choosing New York we have raised the bar. We are ready to go,” Ermenegildo Zegna said that he will retain control of the new entity with 66% of the shares. The initial global value will be approximately $3,2 billion.
FROM NIKE AND HEINEKEN, LAST ACCOUNTS BEFORE THE HOLIDAYS
On the corporate front, the spotlight on Wall Street on Nike, also for the recent landing of the shoe giant in RFKT, a start-up of the virtual world that sold basketball shoes for 6 million dollars in just 3,1 minutes. For "avatars", of course.
Heineken's accounts stand out on the European price lists: after the slowdown in the last quarter caused by the drop in sales in Asia, the effect of the new lockdowns in Europe will be able to be measured.
32 THOUSAND BILLION PAID WITH QE TO SUPPORT PRICE LISTS
After the week of central bank decisions, the markets are preparing to experience a short week, only four sessions, conditioned by concern: will the measures in the pipeline be sufficient to stop the rise in inflation? And opinions are divided. On the one hand there are those (Morgan Stanley) who note that energy prices are destined to fall, others (Columbia Threadneedle) predict an improvement in trade and the end of bottlenecks. But, conversely, Goldman Sachs and BlackRock forecast inflation above 4% for all of next year. Bank of America, on the other hand, points out that the incoming tightening is very little compared to the flood of liquidity poured into the markets since the beginning of the pandemic: 32 trillion dollars, or 800 million dollars a day in the last 20 months which have inflated the market capitalization of 60 trillion dollars: money which, according to the managers consulted by Bofa, will be sufficient to support growth and profits for 2022.
