Only 32 new cases, none of which in Wuhan, where it all began. China, without letting its guard down, is preparing to celebrate the victory against the invisible enemy. The West, Italy in the lead, sees the light at the end of the tunnel, even if it will be an Easter of passion, especially for the economy. But - pace for the unfortunate Boris Johnson, who fights against Covid-19 from his hospital bed - the markets are already looking beyond, towards a reconstruction that will be difficult. Also because the nodes of all time remain, Europe in the first place. But the stock exchanges are celebrating: the worst seems to be over.
The MSCI Asia Pacific index gains 1%, after +3% yesterday. The markets of China have reopened, after the closure for holidays and the new measure to support credit arrived from the People's Bank of China, a lowering of the compulsory reserves that banks active in rural areas are required to have. The CSI 300 index of the Shanghai and Shenzen stock exchanges rose by 2%.
Hong Kong's Hang Seng gains 0,3%, Seoul's Kospi 0,4%, Tokyo's Nikkei 0,7%. From today the soft quarantine measures are in force in Tokyo and in other metropolises, adopted after the resumption of infections.
India's stocks opened up 4% as the rupee breathes after days of pain.
THE DOLLAR RACE STOPS, CRUISES AND CASINOS GROW
The rush for the dollar is back, especially on the part of emerging markets. A sign of improvement comes from Indonesia, which tonight managed to place bonds for 4,3 billion dollars.
Strong recovery yesterday Wall Street: Dow Jones +7,73%, S&P500 +7,33%, Nasdaq +7,03%. In great evidence Boeing (+19,47%). Worth noting is the flight of Capri Holding (+25,9%), the company that controls Versace, which announced the reopening of all stores from June XNUMXst.
Among the best performers in the S&P 500 are the big casino companies and the cruise majors, all up about 20%. It emerged overnight that Saudi Arabia's Public Investment Fund raked in 8,2% of Carnival.
AIR OF AGREEMENT, OIL RUNS AGAIN
Holds back gold, at 637 dollars an ounce. Oil rises again: +3%, to 34 dollars a barrel, pending the OPEC+ summit. There are signs of collaboration between the large crude oil producers, in view of the teleconference meetings in the coming days. In China, the refineries are back to business as at the end of 2019.
ITALY IN THE TRENCH ON EUROBONDS, DIFFICULT COMPROMISE
On the eve of the meeting between the finance ministers of the Eurozone, the declining numbers of the epidemic authorized the optimism of the stock exchanges. The same does not apply to the remote comparison in view of the Eurogroup. Today, at 15 pm, the summit of EU finance ministers will begin by teleconference committed to developing a plan for the eurozone that can bring North and South together. But the road is uphill. Italy has already rejected to the sender the proposal appreciated by Germany, the Netherlands and other partners in the North, which provides for 240 billion euros disbursed through the Save States Fund (the Mes), 200 billion from the EIB and 100 from Sure, the anti-unemployment project. Italy rejects the bailout fund mechanism, also because the "minimum conditions" promised are not all that favourable: the loans would have a maturity of between 5 and 10 years, with some very specific conditions. No opening, however, on the launch of Eurobonds.
THE LIQUIDITY DECREE HAS BEEN LAUNCHED, GOLDEN POWER EXPANDED
Pending a European agreement, the Italian government has launched the new liquidity decree to support the economy and guarantee resources to companies affected by the crisis linked to the coronavirus pandemic. To the 350 billion provided for by Cura Italia another 400 are added: the decree thus brings the state guarantees to cover up to 750 billion euros of loans to companies. The provision provides that loans to SMEs and professionals up to 800 thousand euros are covered by a 100% state guarantee, those above this amount (up to 5 million) and to large companies 90%.
The decree also finds space for the extension of the golden power, through which the government reserves the right to prevent takeovers of key companies also in the financial, credit and insurance, energy, water, transport, health, food safety, artificial intelligence, robotics sectors , semiconductors and cybersecurity.
EUROPEAN LISTS FULL AHEAD BEHIND GERMANY
Piazza Affari inaugurated the Easter week with a gain of 4%, exceeding the threshold of 17 thousand points, at an altitude of 17.039.
The other Stock Exchanges are even more electric: Frankfurt leads the race (+5,74%) ahead of Paris (+4,61%) and Madrid (+4,27%). Vienna gains 4,12%. The Austrian government plans to reopen shops from next week, a first sign of easing of the coronavirus lockdown measures, although the requirement to wear masks has been extended.
EURONEXT: “PIAZZA AFFARI WE ARE VERY INTERESTED”
The Covid-19 emergency does not erase the interest in controlling the financial markets. Indeed, the need to place the tide of bonds and other financial instruments increases the appeal of the markets, starting with Borsa Italiana. Euronext, which has renounced the purchase of the Spanish stock exchange, thus leaving the green light for the Swiss Six, yesterday reiterated its interest in Piazza Affari and in the MTS, the richest and most profitable investee.
Euronext CEO Stephane Boujnah, interviewed by Reuters, said that “today Milan is not for sale, but who knows after this crisis is over? What we have done is communicate our interest to the London Stock Exchange, then we will see”. The London Stock Exchange (LSE) is awaiting the go-ahead from the European Antitrust to acquire Refinitiv and in recent months there has been speculation that to obtain it it would have to sell the Italian subsidiary.
SPREAD DOWN, 9,5 BILLION BTP AT STA
The BTPs are advancing thanks to the ECB's shield. The 1,48-year market trades at 6% (-0,42 basis points). The spread against the Bund at -3% (+190 basis points) drops to 51 points. The Frankfurt institute bought bonds for XNUMX billion euros in March, twenty more than what should be the monthly rate, based on the announcements of the measures taken.
Thursday the Treasury will auction up to 9,5 billion in 4 BTP issues from 3 to 30 years.
THE ECB FILLS UP WITH ITALIAN SECURITIES
In the first five days of April, purchases of securities by the Frankfurt bank on the market exceeded 30 billion, about six billion a day. Giuseppe Sersale of Anthilia reports that the ECB has favored Italy, with 11,9 billion of purchases on BTPs against the two reserved for Germany. In March, purchases on Italian paper accounted for 35% of the total, well beyond the expected quota.
ONLY ENI AND ITALGAS IN RED, CAMPARI SUPERSTAR
Only two shares closed yesterday in Milan: Eni (-0,2%) and Italgas (-1,6%). Saipem rises by 1%. The Oscar of the day went instead to Campari (+10%).
FLY INTESA, NEW NO FROM UBI MEMBERS
The banks are in great evidence, starting with Intesa San Paolo (+9,4%) on the day in which a new chapter of the Ubi game is registered (+2,75%). The Car consultation pact, which brings together around 19% of the shareholders of the bank led by Victor Massiah, he rejected again the offer coming from Carlo Messina. "All the more reason in the light of the current emergency - reads a note yesterday - we confirm that we consider the Intesa-Unipol offer unacceptable, also because it is of a value lower than more than 60% of Ubi's assets, without considering that intangible and other intangible elements such as the prospects for the destination of human resources, the projects in progress and their continuity, the close relationship with the reference territories".
Unicredit (+8,7%) and Mediobanca (+7,16%) also shine. Banco Bpm is recovering (+3%).
UNIPOL ON THE RUN ON POP. SONDRIO
Noteworthy is Banca Popolare di Sondrio (+5,43%): the Unipol group indirectly holds, through the subsidiary UnipolSai, a 1,888% stake in the bank's capital. Press rumors indicate that this could be a first step for a subsequent merger with Bper (almost 20% owned).
In managed business, Azimut (+4%) and Fineco (+2,2%) stand out. March funding was over one billion in March.
Nexi takes off (+6%): Jefferies starts hedging with Buy, target price at 18 euros.
GENERALI TOWARDS THE BOD, ATLANTIA ON THE COROLLASTER
Generals +2,5%. This week the board of directors will decide on the 2019 dividend: the company could distribute a mix of cash and stock.
New roller coaster session for Atlantia (+0,6% at the end of the day). An agreement between the group led by the Benettons and the government seems closer. There will be a new ownership structure with a decisive stake in the hands of Cdp and F2i for Autostrade, a fine to compensate for the bridge disaster which should be over 3 billion and new rules for tolls and licensing.
Among the utilities, Enel +1% and Snam +2%.
RUNS STM, FCA IN SHAREHOLDERS' MEETING AT THE END OF JUNE
Recovery day also for industrialists. Stm (+9%) and Leonardo (+7,5%) lead the race.
Fiat Chrysler (+3%) has postponed the shareholders' meeting to the end of June; the decision on the dividend has also been postponed.
Exor (+8,16%) on April 23 will finalize the transaction relating to the purchase of 43,78% of the share capital of Gedi held by Cir (+0,35%).
Pirelli (+1,3%) has warned that it will not reach the targets previously provided. Morgan Stanley downgrades the judgment to Equal Weight, target price at 3 euros.
In the rest of the price list, Moncler increases (+7%). Among the mid caps, Sogefi (+15,82%), Technogym (+10,77%) and Ovs (+7,17%) stand out.
