The Central Bank of Japan has decided not to decide. Despite alarming signals coming from the economy (falling prices, declining production), Governor Haruhiko Kuroda has not increased the purchases of securities for fear of jeopardizing, without concrete results, the already precarious balance sheet of the most indebted country in the world. In the words of Alessandro Fugnoli, the Japanese banker has embraced the thesis according to which “Qe is like a chemotherapy: it has a certain efficacy but is intoxicating and has growing side effects. It cannot be used permanently." Kuroda will hold a meeting with the press at 11 am Italian.
CHILDREN'S TITLES ON THE RISE IN SHANGHAI
Modest changes for the other Asian markets in the last meeting in October. Stocks linked to childhood rise on Chinese stock exchanges: the plenum of the Communist Party has relaxed its birth control policy. From now on the Chinese will be able to have more than one child, another move destined to increase domestic consumption. The Tokyo Stock Exchange rises by 1% in the final session. Hong Kong is unchanged and Shanghai is up 0,4%. Mumbai is up slightly.
Weak Wall Street. The Dow Jones index fell 0,13%, the S&P 500 0,04% and the Nasdaq 0,42%. The dollar weakened against the euro to 1,097 from 1,092 at the close. The yield on the XNUMX-year reference bond is at its highest level since the end of September.
The excellent performance of Linkedin should be noted: +10% after the quarterly. In the meantime, a new battle of the giants has started: Pfizer (-1,9%) and Allergan (+6%) have confirmed ongoing negotiations for a possible integration of 300 billion in value. But the operation, decided for fiscal reasons (Allergan flies the Irish flag) sounds like an open challenge to the White House against the transfer of American companies abroad to reduce the taxes paid to the tax authorities.
BTP 5 AT HISTORIC MINIMUM
Nervous session for the European stock exchanges, put under pressure by some banking quarterly reports. The Milan Stock Exchange, the most sensitive to credit fluctuations, closed with a large drop: in the final session, the Ftse Mib lost 1,1%, more than the losses recorded by Paris, Frankfurt and Madrid, all three down 0,7%. The imminent rise in interest rates in the United States, again a very concrete hypothesis after the Fed's statement on Wednesday evening, has caused more than a jolt to bonds in Europe as well.
The 10-year BTP, assigned at auction at 1,48% (in any case at its lowest since April) rose by 7 basis points compared to the day before. After placing BOTs and CTZs at negative rates, the Treasury yesterday placed 7,673 billion euros of the new five-year loan at an all-time low of 0,53%. The spread remains unchanged at 95 basis points due to the simultaneous rise in the yield on the 0,54-year German Bund to 0,44% from XNUMX% yesterday.
NIEL INFLAMES TELECOM AT THE HIGHEST IN SEVEN YEARS
A flash on Telecom Italia (+8,7%, at 1,262 euros, close to the highs of the last seven years) illuminated the Italian list. The French entrepreneur Xavier Niel bought, between shares and derivatives, a stake equal to 11,2% of the capital, with an investment of 1,7 billion. The operation of Niel, founder and largest shareholder (54% of the capital) of Iliad, the second French internet provider and third transalpine mobile operator does not seem in harmony with Vincent Bolloré who said he was unaware of the blitz.
DEUTSCHE BANK AND BARCLAYS SINKING THE BANKS
The alarm raised by the Vice President of the European Central Bank Vitor Constancio weighs on credit. To comply with the new rules imposed by Basel, which prohibit an institution from holding more than 25% invested in a single asset in its portfolio, the banks could suffer a capital deficit of over 6.000 billion euros against the amount of government bonds possessed.
The rule introduced by the Basel committee which should come into force in 2019 establishes that a bank cannot be exposed to a single customer for more than 25% of its assets. In the meantime, two real missiles rain down on the sector.
Deutsche Bank closed down 7,3%. The institute, among other cost-containment measures, announced it would cut its workforce by 15.000. The bank will cut 9.000 full-time jobs and 6.000 contractor positions. The sale of assets for 4 billion euros is also planned.
According to ICBPI analysts, after the DB accounts, investors will continue to underweight institutions that have below-average capital requirements. "In Italy we expect attention to be directed to the new Unicredit business plan which will be presented on November 11th", commented the experts.
The English Barclays meanwhile marks a decline of 6% after presenting figures for the quarter lower than expected. The British bank has also cut its profit estimates for 2016. Italian banks are falling within this framework with reductions of even more than 4 percentage points as in the case of Banco Popolare (-4,08%). In heavy losses Ubi Banca (-3,68%), Monte Paschi (-3,45%) and Bper (-3,01%). Unicredit loses 2,24%. Intesa was more stable (-1,65%).
STM WORST BLUE CHIP, CNH DOWN AFTER RECALLS
Another tile came from the technology sector. The global semiconductor index, the Sox, is down 3%. Stm was the worst blue chip of the day with a drop of 5%. The leading European chipmaker released lower-than-expected third-quarter data, and cut its fourth-quarter forecast.
Other industrialists also fell: Finmeccanica -1,5%, Fiat Chrysler -1,6%. Cnh Industrial -0,9% after the presentation of the quarterly data. Operating profit was $245 million, about €80 million less than expected. The company revised its 2015 estimates downward.
ENI (-1,2%) IN RED. RETRACE SAIPEM
Weak oil even if the WTI closes October with a rise of 3% (Brent +1,4%). Eni lost 1,2% on the day of publication of the quarterly data, the period ended in September recorded a loss of 257 million euro. Saipem -4% (two days ago +10%). Tenaris -0,2%. Among the utilities: Enel -2,2%, Enel Green Power -1,5%, A2A -1,7%.
POSTS STILL DOWN (-4,3%)
Poste Italiane closed down 4,3% at 6,41 euros, well below the price placement of 6,75 euros with which it debuted on the stock market on Tuesday. A handful of fashion and luxury stocks such as Yoox (+1,15%), Ferragamo (+0,8%) and Luxottica (+0,3%) managed to remain in positive territory.
