A new negative signal is coming from China: inflation at +1,6% in September (against the expected +1,8%) is slowing down, confirming that the economy in the Dragon is struggling to recover. The markets take note of this: weak Shanghai and Shenzhen, both -0,2%, Hong Kong -0,7%.
Tokyo does worse (-2%) in the worst session of the month. Deflation is in the air in the Rising Sun: producer prices fell by 3,9% in September, the most massive drop since 2009. Better Wall Street, which closed its doors before the most important corporate data: Dow Jones -0,29, 0,66%, S&P -0,87%, Nasdaq -XNUMX%.
JP MORGAN RELIES ON CUTS. J&J BRAKES DESPITE THE BUY BACK
As expected, the strong dollar created problems for the Wall Street giants. It is the first consideration after the first accounts of the Bigs. “We achieved decent results,” Jamie Dimon said, masking his disappointment with the results, which showed profits of $6,8 billion, $1,32 per share, versus $1,38 expected in the third quarter. Volumes are also down from 25,1 to 23,5 billion. The Bank has announced a cost-cutting policy of half a billion dollars. After the Stock Exchange, the stock recorded a drop of 0,6%.
The market response was also weak to Intel's accounts, down on an annual basis: 3,1 billion in profits against 3,3 a year ago. Not even the ten billion buyback launched by Johnson & Johnson (-0,56%) served to reawaken the appetite of buyers.
EUROPE, MARKETS BET ON QE BIS
Closing in slight decline for the Milan Stock Exchange which at the end of the session recovered significantly ground, with the FtseMib index closing at -0,1%, after having recorded a drop of 1,2% in the middle of the day. The other exchanges also cut their losses in the finale. London lost 0,45%, Paris -0,9%, Frankfurt -0,8%.
During the session, the forecast of an increase in European Quantitative Easing strengthened to counter the negative economic situation, especially in Germany, in the face of lower purchases of Emerging Markets and China. A report by Bank of America Merrill Lynch hypothesizes Mario Draghi will already anticipate his intention to extend Qe at the end of the year at the next ECB meeting.
The bond did well on the day of the Btp auctions. The "longs" did very well: the 2032 bond was placed at 2,4% against 2,63% in July. The ten-year yield is 1,659%, the spread with the Bund fluctuates around 110 points.
The euro was up slightly against the dollar to 1,137 from 1,135 at last night's close. Oil is little moved after yesterday's 5% drop. Brent is unchanged at 49,8 dollars a barrel, Wti is traded at 47,5 dollars (+0,9%). In the monthly bulletin of the International Energy Agency, released this morning, it is expected that the world oil market will still be in a situation of production surplus for the whole of next year.
In Europe, the sectors with the greatest decline are Banks (-1,7%), Insurance (-1,6%) and Raw materials (-1,6%).
POSTE ITALIANE HAS ALREADY FULLED UP
It is already covered, after only two days, the offer of Poste Italiane at a price above the minimum. The institutional placement (about 70%) has already collected orders of more than 317 million securities available to investors at a price of more than 6 euros, the low end of the range. Requests are driven by the prospect of a dividend yield exceeding 4% even in the event of a price at the maximum (7,5 euros).
JP MORGAN LAUNCHES THE MONCLER ALARM
In the luxury sector, Moncler tumbled in Milan, closing the session with a drop of 6,4% on the rumors of disappointing results in the third quarter. The slump accelerated in the last half hour of trading when JP Morgan released a report with a negative forecast on third-quarter revenues. Moncler will announce the results on November 9th. Since the beginning of the year, the stock has risen on the Stock Exchange by 35%. Yoox, on the other hand, was positive (+1,9% yesterday).
MEDIASET CLEARS LOSSES. TELECOM NO
Mediaset has eliminated the initial losses and closes with an increase of 0,9%. The title has two sessions of large declines behind it, yesterday it was penalized by a downgrading by a broker. There are new developments in the investigation into the assignment of television rights to Serie A football championship matches for the period 2015-2018. Among the suspects there are also two managers of RTI, of the Mediaset group.
Telecom Italia lost 2,5%.
FCA FLAT, WAITING FOR THE SPRINT
Fiat Chrysler closed unchanged, recovering the losses suffered during the session (up to -2,3%). The prospectus sent to the SEC shows that the Ferrari operation (IPO of 10% and spin off of the stock) will bring FCA a proceeds of 4 billion dollars. One billion will come from the placement of 10% of the horse, to which must be added 3,2 billion dollars (2,8 billion euros) which Ferrari will pay directly to FCA.
With these resources, the company will be able to meet 2,1 billion FCA Notes maturing in April 2016. Equita Sim has reduced the weight of the stock in its portfolio by 50 basis points.
CNH Industrial -2,6%. Banca Akros (neutral, target price 7,5 euro) notes that US producers have announced new negative forecasts.
Stm was also down among industrialists (-1,2%). Finmeccanica, on the other hand, rebounds (+1%) after Monday's slide linked to EU investigations into the aerospace sector.
PIRELLI, takeover bid OK. BYE BYE BUSINESS PLACE
It closed successfully Marco Polo's takeover bid for Pirelli which, after more than a century, leaves the Milanese list. The vehicle of ChemChina and Camfin has collected 70,6% of subscriptions which is added to the share already acquired, sufficient to trigger the merger between Marco Polo and Pirelli. It is probable that with the reopening of the offer 90% of the capital will be exceeded, thus allowing the delisting of the Bicocca share.
The Malacalza group took part in the last day and delivered 6,98% of the capital. The adventure of the Genoese family in Bicocca thus ended with receipts of around 500 million and a capital gain of 300 million.
MONTE PASCHI STILL UNDER FIRE
Among the banks, Unicredit -0,6%. Tomorrow's board of directors will deal with the Palenzona case. Entente +0,2%, MontePaschi -1,8%. In Milan, Eni closed unchanged, Saipem -0,9%. For Exane Bnp Paribas the capital increase will be 2,5 billion: the target price drops to 7,5 from 9 euros. Tenaris +0,4%. Enel closed with a slight increase of 0,2%, Enel Green Power -0,5%. Among the medium-sized companies, Saras (+4,6%), Recordati (+3,2%) and Iren +4,7% stand out.
