The Bull runs into the land of the Dragon. When China's financial markets reopened after the Golden Week on Friday morning, the Shanghai Stock Exchange rallied 2,3%, while the Shenzhen index, the "heart" of technology, advanced 4%. But these numbers are not enough to express the strength of the rally that has invested the Beijing currency, the renmimbi, at its highest level in two and a half years (like the Stock Exchange) at 6,70 against the dollar. The "great leap" to restore an image of Mao's time has a double explanation.
THE YUAN FLY TOO. HALF A MILLION CHINESE TRAVELING
- China appears to have fully overcome the breakdowns of Covid-19. The Caixin services index this morning confirmed that the activity is at its highest level for three months. But what is more impressive is the mass of Chinese tourists, over 550 million, who have resumed traveling in the last week, as shown by the photos of the queues along the Great Wall. Beijing has administered a vaccine that is still in an experimental phase to tens of thousands of people, mainly military and state workers.
- No less important are the events of the last week: China greatly appreciates the difficulties of the enemy Donald Trump, in clear difficulty in countering the "blue tide", i.e. the growth in the Joe Biden approval survey which is now also finding support on Wall Street . A clear democratic affirmation could avert a dramatic ending to the challenge, today evoked by the attempted kidnapping of a deputy by a group of white supremacists.
In this climate, the other Asian markets also rose. Hong Kong's Hang Seng gains 0,3%. The BSE Sensex of Mumbai is 0,2%. Tokyo's Nikkei is down slightly. The MSCI Asia Pacific index is up 0,2%, nearing its highest since March 2018.
EVEN THE DOW TOWARDS NEW RECORDS, IBM DIVIDES INTO TWO
The US markets are cautiously participating in the rally. Wall Street futures rise as the S&P500 closed up 0,8% last night. Dow Jones, at five-week highs, and Nasdaq are up by half a point. . The negotiation between Democrats and Republicans has restarted, after Trump had announced that he had stopped it, but Nancy Pelosi, the speaker of the Democrats in charge of the negotiation, immediately clarified that there will be no agreements on individual points, what the White House would like.
- IBM runs up 6% after the announcement that the company will be split in two, with greater emphasis on the cloud.
KAMALA HARRIS OPENS TO FREE CANNABIS AND IMMEDIATELY BOOM
- All the companies that produce cannabis for therapeutic use are rallying, after Kamala Harris anticipated plans to decriminalize the use of marijuana.
After the Stock Exchange, Gilead announced that one of its treatments for Covid 19 in an advanced stage of study has given good results, greatly shortening recovery times. - Brent oil is down slightly to $43 a barrel. The Wall Street Journal writes that Saudi Arabia is considering the possibility of postponing the planned increase in production.
THE ECB ASKS FOR A "FREE HAND" AGAINST THE CRISIS
The European stock markets closed in positive territory, comforted by the continuation of the Wall Street rally and reassured by the fact that the ECB is preparing to take the field without being influenced by the hawks. The minutes of the last meeting of the ECB show that the bankers have said they are in favor of an approach that provides for a "free hand" in responding to the uncertainty of the economic situation.
ITALIAN STOCK LEAVES LONDON FOR EURONEXT
In this context, the revolution of the European financial markets kicks off, triggered by the divorce between the London Stock Exchange and the Italian Stock Exchange. Before the start of trading, on Friday morning, the official announcement was made of the transfer of Borsa Italiana and its subsidiaries - i.e. Mts, the European platform for government bonds, and Elite, the company that brings together 1.500 unlisted SMEs - to the Italian-French pairing.
In this way, CDP and Banca Intesa on the one hand and Euronext and Socgen on the other, complete a deal worth 4 billion euros plus 200 million in debt. Euronext – where Cdp Equity will have 7,3% of the capital equal to equal to Fund deposits and Consignment, French counterpart of CDP – also manages the stock markets of Belgium, Ireland, Holland, Norway and Portugal with over 1.800 listed companies for a total of approximately 4.400 billion euros of market capitalization.
"We are particularly proud - declared the CEO of Cdp, Fabrizio Palermo - to be protagonists of this operation: Cdp contributes to bringing Piazza Affari within a pan-European group with a stable presence of Italian investors"
BUSINESS SQUARE STILL UP, MADRID THE MOST TONED
Against this background, Piazza Affari achieved a gain of 0,76% on Thursday to 19.582 points, in line with Frankfurt +0,84%, Paris +0,61%, Madrid +1,19%, London +0,53 %.
Of note is the promotion by Goldman Sachs to "buy" the title of the German television network Prosieben +4,8%, a subsidiary of Mediaset.
The parent company of Ladbrokes and Bwin, GVC Holding jumped 4,9% after it revised its full-year revenue forecasts on the back of an increase in online gaming and the recovery of the Premier League.
BMW CFO Nicolas Peter said Britain's divorce from the European Union could cost carmakers and suppliers up to 11 billion euros if tariffs and red tape burden cross-border trade.
BTP AT 0,71%, NEW RECORD
The rally in Eurozone government bonds continues. The Italian 0,71-year rate hits a new all-time low of +124%, even if the spread with the Bund of the same duration is unchanged at 0,93 basis points (+XNUMX%).
The secondary was only minimally affected by the swap operation in which the Treasury assigned all the 2 billion offered in the September 2033 BTP, withdrawing a total of 2,207 billion in five short bonds, over the 2021/2023 stretch.
In the October 13 auction, the Treasury will offer up to 7,5 billion Btp at 3,7 and 30 years.
The oil companies (Stoxx +2%), banks (+1,5%) and tech (+1,5%) shone on the European lists.
DEL VECCHIO'S BLITZ SHAKES MEDIOBANCA (AND GENERALI)
In Piazza Affari the lunge of Delfin by held the court Leonardo Del Vecchio on Mediobanca +3,9%. The title of Piazzetta Cuccia took off after the owner of Essilor/Luxottica announced that he had increased his stake in the institution from 9,9% to 10,2%. "Any further increases in the stake - without prejudice to the 19,9% limit - will be evaluated from time to time on the basis, mainly, of the investment return, market conditions and purchase opportunities", said the king of eyewear . Generals +2,3%.
Strong gains also for the rest of credit: Unicredit +2,42%, Bpm +1,87%. Vola Pop Sondrio +4,74%. The ECB will increase pressure on banks to reclassify loans before large volumes of non-performing loans emerge following the end of the moratoriums and public guarantees.
Retrieve Nexi after Mercury exits. +1,3%. Deutsche Bank raises the target price to 22 euros. The latest government decree provides for the zeroing of commissions only for digital payments up to 5 euros. An advertising campaign to support the diffusion of cashless payments should start soon.
ENI +2,3% WILL STORE ENGLISH CO2
Spotlights also on Eni +2,3% after the British Authority for oil and gas awarded the Italian group the license to carry out a national greenhouse gas storage project, which will flow the CO2 produced by a large number of industrial plants. A twin plant will be built in Ravenna with 2 billion investments.
“The capture and storage of CO2 are among the measures that make it possible to decarbonise industrial plants”, underline the Equita analysts.
The rest of the oil sector was up: Tenaris +3,06%, Saipem +3,25%.
SARAS UNDER FIRE FOR SMUGGLING. THE COMPANY DENIES
In red, however, Saras -7,69%, in the wake of the news according to which the prosecutors of Cagliari and Milan are allegedly investigating the origin of 12 million tons of raw materials processed between 2015-16. It is suspected that the origin of the crude could be traced back to terrorist organizations. The company has "strongly rejected any association of the company name with oil and fuel smuggling."
GUALTIERI: FOR ATLANTIA, EITHER THE AGREEMENT OR THE REVOCATION
Atlantia is still lagging behind -0,69%. As anticipated by a recent interview with CEO Roberto Tomasi, ASPI has sent MIT a letter in which it declares itself ready to accept all the conditions set by the Executive in the settlement deed, with the sole exception of article 10 which binds the agreement on the transfer of ownership of Aspi to CDP. But in the evening the Economy Minister Roberto Gualtieri, speaking on "Porta a porta" was drastic: without an agreement, all that remains is the revocation of the concession.
Among the industrials, Pirelli +4%, Amplifon +1,63% to 31,21 euros, on which Citi has started the coverage with a buy rating and a target price of 36,4 euros.
Among the mid caps, sprint by Cerved +5,69%), Technogym +3,35%) and Cattolica +2,6%.
Danieli also did well +1,74% to 14,06 euros: Equita raised its target price from 14,9 to 15,6 euros, confirming the hold rating, after the company provided guidance for 2021.
Finally on the Aim price list, money on Energica M. (+3,87%), which has reached an agreement with Dorna Sports to be the sole supplier of electric motorcycles for the FIM Enel MotoE World Cup until 2022, maintaining its position of world leader in the field of electric racing, with its Ego Corsa.
