“President Draghi, you are considered a hero. In Italy, but not here in Holland”.
“I am not a hero, it is not my job to be a hero, I simply pursue my mandate which is price stability”.
“But what will happen when Italy is forced to leave the euro? How will the target 2 deficit repay” urges the Eurosceptic Thierry Baudet.
“The single currency is irrevocable. This is reality, the rest is speculation."
"We'll see".
“We'll see, for sure” Draghi closes before receiving a tulip as a gift, a symbol of the failures of financial euphoria.
"Look at him in the meetings of the ECB" advises Pieter Duisemberg, nephew of Wim (the first president of the ECB), president of the Finance Commission of the Parliament.
Here is a small excerpt from the bitter question and answer between Draghi and some Dutch deputies yesterday in Parliament. In the session, which lasted a couple of hours, no significant news emerged on the ECB's monetary line. But more than the contents, the tone of the debate counts, from which emerges the manifest hostility, not only on the part of the populists, towards the accommodating monetary policy which was also necessary, says Draghi, "to create 4,5 million jobs of work throughout Europe. This is reality, everything else is just talk." But, beyond the tenacity of the banker who doesn't feel like a hero, the siege of Qe is becoming more and more aggressive.
FBI BREAKS WALL STREET, ASIA ON RISE
The bitter political conflict in the USA is being felt on the markets after the outright dismissal of FBI director William Comey. Donald Trump's move could lead to the paralysis of the legislative activity of Congress, pending the developments of Russiagate, with lethal effects for the reforms desired by the president and on the functioning of the federal machine. But the negative effects were offset by the jump in oil prices, supported by the decline in inventories.
Asian price lists were positive this morning. Hong Kong is up (+0,25%) and the Korean Kospi is back on top (+1%) after the victory in the presidential elections of the "dove" Moon, ready to negotiate with Pyongyang. Tokyo advances (+0,36) awaiting the quarterly results. Historic record for the Indian stock market: BSE Sensex index +0,3% to 30.346 points. Seoul +0,5%.
SNAP SHOULDER STRAP -23%. ABERCROMBIE & FITCH AT AUCTION
Contrasted Wall Street: Dow Iones -0,16%, S&P 500 +0,11%. Yet another Nasdaq record (+0,14%, at 6.129,14 points).
Snap sinks, the ephemeral meteor of social networks. After the accounts, announced after the stock exchange was closed, the title fell by 23% just above 12 dollars (against an IPO price of 17). User growth slows down and revenues stall.
In the red Walt Disney (-2,15%), held back by the decline in subscribers to the sports channel ESPN. Abercrombie & Fitch, the long-struggling clothing store chain, jumped 11% on a merger with at least two potential buyers. The Wall Street Journal reports it according to which the two suitors would be Express and American Eagle Outfitters.
CHIPS FLY. STM PRESENTS ITSELF IN LONDON TODAY
Supporting the Nasdaq was the rally of chipmakers, led by Nvidia (+17,83%). Competitor AMD posts an increase of 5,99%. In this context, expectations are growing for the Capital Market Day of STM (+1,5%), scheduled for today in London.
OIL ABOVE 50 DOLLARS. ENI +0,5% AFTER THE ACCOUNTS
Oil is back above 50 dollars (Brent at 50,45 dollars + 3%) after the publication of data on US inventories which fell by 5,2 million barrels. In Piazza Affari Eni closed the session up 0,5% on the day of the presentation of the quarterly data. The group closed with an adjusted net profit (excluding extraordinary items) equal to 744 million euro, while the adjusted operating profit amounted to 1,83 billion (+215%). Production grew by 2,3% to 1,795 million barrels per day, confirming the 5% growth estimate for the current year at 1,84 million barrels per day “thanks to new project starts and ramp-ups of the fields opened in 2016, mainly in Egypt, Kazakhstan, Angola, Indonesia and Norway".
Saipem -0,2% after announcing new contracts for 500 million dollars. Tenaris +1,5%
QUARTERLY REPORTS SUPPORT MILAN. TODAY THE G7 OF FINANCE
Futures on European stock exchanges anticipate a start just above parity. The quarterly reports of Generali, Unicredit and Unipol will be held in Piazza Affari. Flat sitting instead yesterday for the European markets. More than the indications coming from Draghi, the indications coming from the positive quarterly reports, which balanced the tensions in the banking sector, characterized the day. On the opening day of the G7 meeting of finance ministers in Bari, attention was focused on the EU's spring forecasts, to which the budget choices of the partner countries will have to comply.
In Piazza Affari, the Ftse Mib index gained 0,31%, closing at 21.553 points. Paris (-0,05%) and Frankfurt (+0,06%) were essentially stable. Madrid -0,12%. Only London is up (+0,59%). The Bank of England board meets today. Governor Mark Carney is expected to leave rates unchanged at 0,25% even as inflation has climbed past the 2% level.
The policy of the ECB cannot be touched. During his Dutch day, Draghi left no doubts: the Bank does not intend to change course even if the risk of a shortage of government bonds in some countries grows. "Some members of the Governing Council - he said - think that the rules could have changed but the majority of the Council has expressed many times in favor of maintaining the current line".
NEW EXAMINATION IN AUCTION FOR LONG SECURITIES AWAITING BY BTP ITALIA
In yesterday's twelve-month Treasury auction, the Ministry of the Economy obtained the best conditions ever with a negative rate of 0,304%. The spread at 183 basis points (-1bp) was not moved. Today the Treasury will offer up to 7,25 billion euros in new BTPs, the three-, seven- and thirty-year benchmarks together with the reopening of an 'off-the-run' maturing in September 2044.
Next week will be dedicated to the placement of the eleventh edition of the BTP Italia. Between 22 and 26 May there could then be an offer, through a union, of a new thirty-year contract. The performance of Hellenic bonds was significant. Yields on Greek government bonds hit their lowest in more than five years, thanks to optimism about an imminent deal that will allow the release of new financial aid to Athens.
A2A +5,3% AT FULL THROTTLE. DISAPPOINTS PRYSMIAN
The happiest surprise for Piazza Affari concerns A2A, the best blue chip with an increase of 5,3% to 1,49 euros, a price the stock has not seen since 2010. The Lombard multiutility presented the data for the quarter yesterday: Ebitda of the electricity generation area achieved very strong growth. Ebitda for the first three months of 2017 amounted to 403 million euros, up 28% year on year. Electricity generation assets recorded a 58% growth to 150 million euros, well above analysts' estimates. Net profit at 180 million euros, about 50 million above forecasts. At the end of March, net debt was 3,02 billion euros, up from 3,13 billion at the end of December.
The disappointment was instead Prysmian (-3,5%) held back by a guidance deemed unsatisfactory. In the current year, the EBITDA of the telecom and energy cable manufacturer will be between 710 and 750 million euros, up from 711 million euros in 2016. The consensus expected 760 million euros. The first three months of 2017 closed with revenues of €1,89 billion, down 3,7% year-on-year on a comparable basis. Adjusted Ebitda up 2,5% to 154 million euros.
BANCA MEDIOLANUM SHINES, BPER COLLAPSES
In the financial sector, Banca Mediolanum shone +3,2% following the presentation of the first quarter data. This morning is the Kepler Cheuvreux a Buy da Hold promotion. The negative note concerns Bper Banca (-5,6%), after the unconvincing denials of the management on the possible purchase of Unipol Banca. Unipol also lost ground (-2,2%).
Agreement unchanged, Unicredit +1,1%, Banco Bpm -2,1%, Ubi Banca -0,3%. Mediobanca (-0,27%) presented yesterday evening, with the Stock Exchange closed, the accounts for the first 9 months of the 2016-2017 financial year (closed at the end of March 2017) with a net profit of 614 million euro, up by 38,8 .9% compared to the same period of the previous year. Revenues rose 1.657% to 40 million euros, the highest ever. The institute could now raise the dividend above the announced threshold of a XNUMX% payout. This was stated by the CEO of the bank, Alberto Nagel.
SOLE 24 RE, INCREASE OF 50 MILLION IN SIGHT
Campari's race continued (+4,6%) after the good results. Shares of the spirits company gained 4,4% on Tuesday. Little move Enel (+0,4%), Telecom Italia loses 0,8%. Among the other stocks, Buzzi +1,7%, Recordati +1,3%. Leonardo +0,7%, Fiat Chrysler +0,4%.
The BoD of Il Sole 24 Ore will propose to the shareholders, who will meet at the end of June, a capital increase of no less than 50 million euro after closing the first quarter with a negative shareholders' equity of 39,9 million, worsening since the end of 2016 (it was -11,7 million) due to the loss of 28,2 million recorded in the first three months of the year.
