The White House moves on the price of oil to fight inflation. President Joe Biden is seeking the solidarity of friends and enemies (India, Japan, China above all) to put part of the strategic reserves on the market to force OPEC+ to increase extractions. The effect is the drop in Brent prices below 80 dollars (-8% compared to the highs of the month) but, at least for now, the effect on the expectation of inflation appears modest. On the markets, awaiting the appointments to the Fed, developments on the price front are being watched with caution. The results of the consumer giants demonstrate that, for now, inflation has not curbed the propensity to purchase, but the problems of production and logistics have significantly damaged large-scale distribution. And from Singapore David Salomon, CEO of Goldman Sachs, sends word: "On Wall Street, greed has taken the place of fear". Ergo, once the pandemic emergency has passed, the recovery will not be a walk in the park.
However, the real cold shower for global finance comes from India: this morning the IPO of the fintech Paytm was scheduled, the most important in the history of the Mumbai Stock Exchange, which in 2021 has so far raised more capital than China. But the awaited debut proved to be a flop: -24,5%. Technology suffers in Asia these days.
Confirmation comes from Hong Kong (-3%). Baidu, the Chinese Google, is down 7% after presenting not entirely satisfactory data for the quarter, due to the drop in advertising. Alibaba (-4%) and JD.Com (-3%) also fell.
Evergrande is back (-4,5%) which will also collect 273 million dollars from the sale of the TV subsidiary, thus continuing to pay part of its debts.
Weak Tokyo (-0,7%) and the other markets: CSI 300 of the Shanghai and Shenzen lists -0,7%. Kospi of Seoul -0,3%. Mumbai BSE Sensex -0,7%.
Wall Street futures flat this morning. Yesterday the Nasdaq closed down by 0,3%, the S&P500 by 0,3. The Dow Jones is also down.
Target (-4,7%), Kohl's (-3,1%) and Macy's (-4,7%) and Macy's (-XNUMX%) lose ground, despite the stability of revenues, after the drop in margins.
Visa under fire (-4,7%) after Amazon announced that it will not accept payments in the UK with this credit card, given the high fees.
After the stock exchange, Nvidia announced quarterly data and the stock gained 5%. What has now become the world's largest chip company in terms of capitalization presented indications on revenues for the current quarter well above analysts' expectations: 7,4 billion dollars, against the 6,9 billion expected by the consensus. It is rewarding the choice to focus on chips installed in data centers.
The electric car race continues. Rivian loses hits (-15%) but the debutant Sono Group has shot up on the Nasdaq by 155%.
The 1,58-year Treasury Note returned to two days ago levels at 23%: there were no problems with the 1,131 billion Treasury auction with a twenty-year maturity. The euro dollar moved little at 1.867, on the lows for the period. Gold at $XNUMX, more or less yesterday's levels.
MERKEL: ACHTUNG ON CONTAGIONS. AND ON THE PRICES, ADD THE BUBA
In terms of inflation, a confirmation of the price race also comes from Europe, where Eurostat certifies that in October inflation in the euro area rose more than double the ECB's target: +0,8% on a monthly basis , +4,1% on an annual basis. A leap that allows Isabel Schnabel, a member of the Eurotower executive committee, to observe that the ECB must be ready to bring inflation under control, while Angela Merkel defines the pandemic situation as "dramatic".
Perhaps coinciding with the choices of the Bank of England: inflation is also on the rise in Great Britain, where it reaches a ten-year high: +1,1% consumer prices in October, month on month, and + 4,2% annual. But the performance of the bond markets bears witness to the fact that, at least for now, the fears concern insiders more than the mood of the markets. The dollar continues to strengthen (the cross with the euro fell to 1,13 for the sixth consecutive session) but has not yet reached its guard level.
THE TURKISH LIRA IS STILL SHAKING, NEW RATES CUT TODAY
The Istanbul magazine is also under control: the dollar/Turkish lira cross is at a new all-time high and tomorrow Erdogan's Central Bank could announce a new rate cut. But Europe looks with increasing detachment to the moves of the Sultan who, together with Belarus, also controls the gateway for immigrants from the East of the world.
THE 30-YEAR BTP IN DOLLARS SET AT 3,60%
Movements contained in the bond. The spread between the ten-year Italian and German returns to 121 basis points (+1,59%), with a rate of the BTP at +0,99% and that of the Bund at -0,28%.
As the end of the year approaches, the shortage of bonds for use as collateral is a driver of prices, traders report, despite recent moves by the ECB to address the issue.
On the primary front, the reopening of the dollar bond in May 2,2 ended with requests for over 2051 billion euros, for which the Treasury had announced yesterday that it had mandated a syndicate of banks. The guidance on the final yield of the thirty-year bond has been set at 3,60%.
MILAN FLAT, SIEMENS HEALTH RUNS IN FRANKFURT
Piazza Affari closed slightly up at +0,07%, 27.824 points. The climate is similar to Frankfurt (+0,02%). On the day of a new pandemic alarm Siemens Health supports the price list with a leap of 5,56% due to the increase in objectives thanks to the synergy with Varian, purchased at the beginning of the year.
ART MAKES CRYPTO BLOCKCAIN FLY IN PARIS: +3.000%
The Guinness Book of Records has a new champion: Crypto Blockchain Industries (+15,73%), which debuted in Paris just three weeks ago, has achieved a cyclopean rise in this period, close to 3000% (from 2 euros per action on 26 October at the current 64 euros). The latest push came yesterday evening with the announcement of a first sale of NFTs, i.e. non-reproducible digital works. The company develops AlphaVerse, a virtual world (metaverse) based on blockchain technology that will open in summer 2022. For Morgan Stanley, the Meta luxury market inaugurated by Mark Zuckerberg is worth 50 billion dollars by 2013.
RICHEMONT AT TOP AFTER FIVE DAYS OF RALLY
Luxury advances not only on the Paris stock exchange. In Zurich Richemont (+0,45%) extends the rally for the fifth day and is at an all-time high of 23,483 Swiss francs after a series of increases in the target price by brokers
WARNER TREATS THE DAVID BOWIE CATALOGUE
Weak Madrid (-0,47%), negative London (-0,49%). The euro/sterling cross fell for the fourth consecutive day, to 0,842, the lowest since March 2.020.
Warner Brothers, anticipates the Financial Times, is about to launch an offer on David Bowie's catalog: the company is raising $535 million in debt to support a potential takeover from the rock star's family. The City newspaper suggests the four-day work week as an effective remedy for environmental problems.
FERRARI RUNS: THE ELECTRIC EFFECT OF THE VINEYARD IS LIKED
The opinion of Morgan Stanley (overweight to 350 dollars from 265) gave wings to Ferrari (+3,24%, +20% in the last month). Analysts cited better-than-expected third-quarter results and higher margin estimates. The quarterly, the brokers explained, was also significant for the introduction to the market of the new CEO Benedetto Vigna, who gave some important details on the future as he begins to structure his strategy on electricity.
CNH LOOKS AT OTO MELARA AND DOES BUSINESS WITH BEZOS
Focus also on Cnh Industrial (+0,94%) after the subsidiary Iveco strengthened commercial relations with Amazon. The Seattle group has already taken delivery of the first batch of 216 units of Iveco S-Way Cng (compressed natural gas), which will be managed by its partners in Europe. For Akros, Iveco itself is among the potential buyers of Oto Melara.
DE AGOSTINI LEAVES GENERALI, PELLISSIOLI LEAVES
Earthquake in Novara. The Boroli/Drago families, who control De Agostini, have now decided, he writes Republica change of course. After having sold the slot machine business, the brand and some assets of Lottomatica (with 950 million in proceeds), and the sale of the school publishing division (157,5 million) to Mondadori, Novara is studying how to sell the share of Generali without failing to support the future list of management of the Lion, which will be voted for the first time at the shareholders' meeting on 29 April.
Today, valuing 1,46% of Generali on the market would bring a check for over 430 million to the Novara group which, added to the other sales, would make it possible to finance a major acquisition. The operation will not be managed by Lorenzo Pelliccioli but by Marco Sala, historical manager of the group. But Republic speaks of a "fired dialectic" between the owning families.
NEXI PAYS AMAZON'S ULTIMATUN TO VISA UK
Setback for Nexi (-4,60%), penalized by Amazon's decision regarding credit cards of the Visa circuit issued in Great Britain. But the collapse of Stoneco (-28%) is also involved: the digital payments company mostly active in Brazil reported lower-than-expected quarterly figures.
Telecom closed almost unchanged (+0,18%), in the red for most of the session after a strong start.
AEFFE DOESN'T STOP: MEDIOBANCA'S JUDGMENT RISES
In the luxury sector, in recovery, new rise for Ferragamo (+2,6%). Moncler is down slightly, Tod's is worse (-1,4%).
On the other hand, the progression of Aeffe continues (+5,66%) in the wake of the accounts and development plans of the Moschino brand. "We are re-evaluating Aeffe's entire equity history and we understand that the recent initiatives are all aimed at bringing out the hidden value of the Moschino brand", writes Mediobanca Securities in the daily in which the "Neutral" recommendation is confirmed and the target price is raised at 2,90 euros from 1,65 euros.
Progress in the EU on aid for semiconductors gives a boost to STM +1,4%. Prysmian also rose (+2,3%).
UNICREDIT, BETWEEN BUYBACKS AND COUPONS CAN RETURN 8%
Banks in money. Unicredit +0,55%: the institution could yield (total shareholder yield, coupon plus buyback) around 8% in the two-year period 2021-22, calculates Bloomberg.
Diasorin fell again in the afternoon (-4,15%), victim of realizations and penalized by Kepler Cheuvreux's downgrade to "hold" from "buy".
ILLIMITY'S RATING GOES UP
In the light of Marr (+2,72%) promoted by Intesa Sanpaolo from hold to buy, with the target price going from 21,3 to 24,2 euros, after the accounts for the third quarter.
Unlimited +0,83%; Fitch Ratings upgraded Group's Long-Term Issuer Default Rating (IDR) to "BB-" (previously "B+") and Viability Rating (VR) to "bb-" (from "b+") with stable outlook confirmed .
On the Egm, Sciuker Frames rally (+12,53%); Intermonte has started coverage with a buy and target rating of 15,2 euros for the manufacturer of windows and doors.
