Spotlights on Vienna, seat of the OPEC summit: crude oil prices slipped last night to new lows since 2010: 76,7 dollars for Brent, 72,3 for Texan crude. The acceleration of the declines was caused by the news of a four-way agreement between the states of the Arabian Peninsula: Saudi Arabia, Kuwait, the United Arab Emirates and Qatar, i.e. the countries that boast the highest currency reserves and have no immediate need to raise prices, unlike Venezuela, Iran and, outside the cartel, Russia. The Big Four have decided not to cut production. While awaiting the official meeting, the markets already took note of the decision yesterday.
1) Oil stocks drop. In Milan Eni lost 1,6%, Saipem -1,9%. On the other hand, Tenaris was positive +0,4%, recovering from heavy losses. All the Big Oils are suffering: since June, BP has fallen by 17%, Chevron by 11%. Exxon's capitalization -0,32% slipped yesterday to 400,8 billion dollars: it has dropped by 47 billion dollars since June.
2) The impact is also likely to be significant for the financial world: Barclays and Wells Fargo, writes the Financial Times, risk leaving behind 850 million dollars, already involved in the merger between Sabine and Forest Oil. But the list of possible cracks gets longer: about 15% of the junk bond market concerns oil companies.
3) The consequences at the state level are even more considerable: Russia's difficulties are growing, the fortunes of importers are growing, starting with India: the Mumbai index has risen in the last 12 months from 19.600 to 28.900 points. The gain for Europe is also sensible, with Italy in the lead.
WALL STREET CELEBRATES WITH A RECORD. FLY SHANGHAI
Asian stock markets closed up, with the exception of Tokyo, down slightly in the wake of a decline in the dollar from its highs: the Nikkei has advanced by 5,6% since the beginning of the month. Shanghai does better, +8,2% one week after the discount rate cut. The market is betting on new expansionary measures by Beijing.
Wall Street, closed today for Thanksgiving day, celebrated in advance with another series of records: S&P 500 +0,3% at 2072 (new high, the 47th of 2014), Dow Jones +0,07 at 17.827. The Nasdaq closes at +0,61%. Positive data on orders for durable goods arrived on the market, influenced however by Defense orders. For the first time in two and a half months, weekly claims for new unemployment benefits have risen above the psychological threshold of 300.000 units: last week they were 313.000, economists expected 288.000.
John Deere, world leader in tractors and agricultural machinery, has revised its 2015 targets downwards: Cnh Industrial -3,9% also suffers in Piazza Affari - 2015%. The stock fell after American competitor Deere, the world leader in tractors and agricultural machinery, released lower-than-expected XNUMX earnings targets.
WEAK MILAN: THE ECB WILL MOVE ONLY IN 2015
The panorama of the European Stock Exchanges was mixed: Paris -0,1% and Madrid -0,4% down, London +0,1% and Frankfurt +0,5% positive. Weak closure for the Milan Stock Exchange: the FtseMib index recorded a drop of 0,3%. The words of Victor Costancio, vice president of the ECB contributed to conditioning moods in the afternoon: the Eurotower will take a decision on the possible purchase of government bonds only in the first quarter of next year. The banker then added: "the ECB will consider buying other assets on the secondary market, including sovereign bonds" if the current measures are not enough.
BTP, TOWARDS RECORD AUCTION. SKIP BUND PLACEMENT
After yesterday's announced success of the 6-month Bot auction (yield 0,272%) we are moving towards new auction lows for medium-long term securities. Today the Treasury offers up to 7 billion BTPs and Ccteu, including the new five-year December 2019: these are the last medium-long placements with settlement in 2014. Yesterday evening on the MTS "grey market" the 5-year BTP was traded at 100,270, for a yield of around 1%, below the all-time low of 1,06% recorded in September. The 2,14-year was traded at 2,39%, against the low of 2014% in August. Meanwhile, for the twelfth time in 3,25, the auction of German XNUMX-year bonds was technically uncovered, placed for only XNUMX billion, with demand lower than supply net of bonds held by the Bundesbank.
MANAGEMENT SHINES, BANKS IN NO ORDER
Up throughout the session, banks then closed in no particular order. Unicredit (+0,5%) and Popolare Milano (+0,9%) closed on positive ground. Intesa (-0,9%), Monte Paschi (-1,4%) and Ubi (-1,1%) fall back. Asset management companies were positive: Azimut +1,4%, Mediolanum +0,5%. In October, the sector achieved positive inflows of €12,4 billion and is preparing to close a record year with over €110 billion in subscriptions since the beginning of the year.
PRYSMIAN LISTS A SUBSIDIARY IN HONG KONG
Prysmian (+0,40%) should be noted among the industrialists. The world's leading cable group is preparing to list a subsidiary in Hong Kong. In fact, the Hong Kong Stock Exchange authorities have approved the publication of the prospectus relating to the public offer and listing of Yangtze Optical Fiber and Cable, of which Prysmian is the main shareholder with 37,5%. Based on the data reported in the prospectus, the valuation of Yangtze Optical Fiber and Cable is between 400 and 500 million euros.
FCA -0,20%, at 10,04 euros. According to a filing with the SEC published yesterday, "FCA's net industrial debt is estimated to improve by approximately 715 million as a result of the distribution of 2,25 billion and the elimination of Ferrari debt for 133 million", which is partially offset by the cancellation of Ferrari's "cash and cash equivalents and receivables" for respectively 652 and 1.016 million euros.
Ansaldo Sts rose by 3,9% following rumors according to which the Chinese consortium would be back in the field for the purchase of the Transport division of Finmeccanica +1%. StM unchanged.
YOOX AND MONDADORI, TWO ARROWS
Fly Yoox (+6,8%), yesterday's best blue chip in Piazza Affari. The stock moved in the wake of the German Zalando, +15% in Frankfurt after data showing a strong improvement in profitability. Furthermore, Canaccord Genuity, a Canadian investment company, has started coverage of the e-commerce company with a Buy recommendation and a target price of 21,2 euros. Finally, the top management increased its stake in the company's capital.
Outside the main Mondadori index (+9,5%) it shines after the announcement of the spin-off of the Books division which opens the door to possible M&A operations. Kepler Cheuvreux analysts (rating hold and target price at 0,75 euro confirmed) welcomed the move which allows the publishing group to enhance its leadership in the sector. The Segrate-based company boasts a 27% market share in Italy, compared to 11,7% for Rcs, 9,5% for Gem, 6,3% for Giunti, 5% for Feltrinelli and 2% of De Agostini.
