PAY TV: COMCAST PAYS TIME WARNER 44 BILLION. BOT AND RECORD STOCK EXCHANGE IN MILAN. TODAY IT'S THE BTP'S TURN
Revolution in the media: Comcast has announced the purchase of Time Warner for 44 billion dollars. From the operation, which will have to obtain the approval of the authorities (the green light from the FCC is far from obvious), a giant is born that controls about a third of the pay TV and broadband services market in the USA. Comcast, which controls, among other things, the NBC network (which announced the news of the deal) capitalizes on approximately 144,5 billion dollars and has 53 million customers; the "prey" Time Warner has 15 million paid subscribers.
It is the confirmation that in the media/telecom sector a new phase of M&A has now begun which involves all the operators to a certain extent. The announcement of the first “deal of the century” of 2014 comes at the end of a flat day dedicated to absorbing Janet Yellen's words to Congress and the Washington debt ceiling deal. On Wall Street The Dow Jones index fell by 0,2%, the S&P500 by 0,03% while the Nasdaq rose by 0,24%. The Tokyo Stock Exchange fell this morning, down by around 1,5%. On the other hand, the Shanghai and Hong Kong Stock Exchanges rose, albeit slightly.
The European price lists were positive yesterday. The Paris Stock Exchange gained 0,5%, Frankfurt +0,6%, London unchanged. The rise in German GDP estimates to 1,8% from the previous 1,7% contributed to the good performance of the European Stock Exchanges. Stocks more linked to the economic cycle rose the most, such as raw materials (Stoxx of the sector +2,1%), insurance (+1,3%), automotive (+1,5%).
MILAN: STOCK EXCHANGE AND BOT RECORD. TODAY IT'S THE BTP'S TURN
The possible Renzi-Letta relay did not disturb the markets: spread stable at 202, yields at minimum levels for the annual BOTs at auction. In Piazza Affari, the FtseMib index rose by 1,3%, returning to above 20.000, a level it had not seen since July 2011. Today's auction of medium and long-term securities looks auspicious, despite a slight adjustment on prices in yesterday's finale. The three-year BTP, offered today for between 3 and 3,5 billion, closed the session down by 0,092 for a rate of 1,471%. The BTP 7, at auction today for 2,25 billion, yielded 3,064% yesterday evening. Long awaited also for the 30-year BTP, the thirty-year benchmark offered for 1-1,5 billion.
BANKING UNION, DRAGONS CHALLENGE BERLIN
The agreement reached by the EU Council at the end of December on the Single Resolution Mechanism (or SRM) for solving banking crises "can be improved". So said Mario Draghi yesterday, criticizing the solution imposed in practice by the German resistance before the European Parliament. The mechanism, explained the president of the ECB, now does not guarantee that the dangerous link between banks and states will be broken.
Draghi has suggested some changes: the 55 billion bank-funded resolution fund must become fully European in five years, instead of ten. Furthermore, the fund must have a public parachute and be able to finance itself on the markets with state guarantees, to increase firepower in the event of a major crisis. The lunge of the central banker falls on the eve of the Eurogroup and Ecofin summit on Monday and next Tuesday. The next few days will be decisive in finding an agreement on the SRM, between the positions of the EU Council and those of the European Parliament, sided with positions close to Draghi. Times are tight: in May there will be the European elections.
THE POPULAR RUNNING: BPER IS THE BEST STOCK
The popular rally continued in Milan. Bper +5,04% was the best share of the Ftse Mib. The share reached intraday highs of 7,97 euros, benefiting from the words of CEO Luigi Odorici, who ruled out the need for a capital increase. Bpm +2,87% is also highlighted. At the end of an all-rising session, Banco Popular reversed course and closed down 1%.
The big banks are positive: Kepler Cheuvreux raised the target price on Mediobanca +1,1% from 6,6 to 7,2 euros and on Unicredit +2,1% from 4,8 to 5,8 euros, confirming the hold rating . Understanding +0,4%. Among the assurances she woke up Generali + 2,2% UnipolSai +1,2%. In asset management Azimuth rose by 3%, Mediolanum + 0,9%.
JOHN DEERE PUSHES CNH, AGUSTA FINMECCANICA
Among the industrial stocks good rise of Cnh Industrial +2,8%, driven by the initial rise of the American Deere which announced better than expected prospects for 2014 in the tractor and agricultural machinery sector. Fiat gained 0,9%. Reacts Pirelli +3,8% to the negative effect of the accounts of the competitor Michelin, demoted by Goldman Sachs.
In the automotive sector it advances Brembo +5,75% in the wake of Mediobanca Securities' rating increase from neutral to outperform and the target price from 21 to 24 euros. The stock has doubled in value in about a year.
Also good Finmeccanica +1,77% whose subsidiary, AgustaWestland, was awarded new orders for a total value of approximately 130 million euro for the supply of 13 helicopters for government and commercial use to various customers in the regions of North and Southeast Asia.
Plus sign for Saipem +2,07% despite having suffered a series of rating target cuts by various business houses, following the publication of the accounts and forecasts. The American investment company Dodge & Cox announced the purchase of 5,045% of the subsidiary Eni. The update of the investment held by the San Francisco-based fund dates back to 4 February and emerges from Consob communications.
TELECOM, US ATTRACTION FOR SAVINGS
Waiting for news from Telecom Italia +0,94% on governance and on Brazil the hunt for savings shares holds the ground +0,54%. After the Massachusetts Financial Services Company, which appeared on Monday among the shareholders of the Italian group with 5,7% of the savings capital, another fund announced yesterday that it holds 5,83%: it is Brandes Investment Partners, founded by Charles Brandes (among the richest men in the world in the 2013 Forbes ranking). Since the beginning of the year, Telecom savings bonds have risen by 14,5%.
MONCLER AWAKES UP. PRADA SLIDE
The Moncler freshman wakes up +2,31%, after Equita Sim inaugurated the coverage of the title with a buy. In the luxury sector, Yoox rose by 2%, Tod's +1,2%, negative Ferragamo -0,4%.
Prada loses ground -4,95% in Hong Kong after the data for the 2013 fiscal year (ended January 31, 2014) with revenues of 3.586 million euros, up 9% on 2012. At constant exchange rates, growth is was 13% also thanks to new openings. But the wholesale channel, on the other hand, recorded a drop of 7%, attributable, according to what the group explains in a press release, to the strategy adopted in recent years "to rationalize the distribution network and, in particular in Europe, to select the independent clientele.
I LIKE THE RCS DUEL. MONDO TV SELLS CARTOONS IN JAPAN
Rcs Mediagroup is in great turmoil +7,24%. The speculative appeal due to the question and answer between Diego Della Valle and the president of Fiat John Elkann is appreciated. Among the small caps money on Amplifon +4,73%: Equita Sim has raised the recommendation from hold to buy with the target price rising from 4,2 to 5,8 euros.
Mondo TV closed the session with +8,44% to 0,578 euro in the wake of the three-year agreement reached with Nippon Animation International, a leading Japanese company in the production and supply of animated audiovisual contents.
