TECH SALES WEIGHT IN TOKYO AND WALL STREET. FRANCE AND TIMEDIA AWAKEN TELECOM ITALIA
The target practice on technology stocks continues for the third day in a row. And the landslide, on the eve of the US quarterly season (tonight, as per tradition, the Alcoa series opens) puts all the markets under pressure.
In Tokyo, the stock market is starting to close with a loss of more than 1,5%, despite the rebound in the trade balance (+612 billion yen after four months in the red). In Seoul negative session for Samsung -1,2% after the results. The Shanghai Stock Exchange reopens its doors with a positive sign: after the declines, the quotations are starting to appear cheap.
The final was heavy on Wall Street: the Dow Jones index fell by 1%, the S&P 500 by 0,95% and the Nasdaq by 1,16%. From Friday's mid-day high when the sell-off began, the S&P 500 is down 2,7%. Pfizer's slowdown also weighs down 3% to $31,17.
Over the past month, Twitter and China's Tencent have experienced declines of more than 20%. After the spectacular increases of the last month, Netflix, Tesla and Pandora are also under fire. Weibo, the Chinese Twitter about to be listed on the Nasdaq, has lowered the initial offer price: from 500 to 435 million.
The downpour of sales has not touched the big names in the sector, from Apple to Microsoft. It also holds Facebook, and does not curb its fever for M&A: yesterday Mallinckrodt -9,4% reached an agreement to take over the pharmaceutical company Questcor Pharmaceuticals for about 5,6 billion dollars, a valuation justified by Questcor's multiple sclerosis drug +13,5% to 77,05%.
Negative day for the European Stock Exchanges: London fell by 1,1%, Paris -1%, Frankfurt -1,9%. The loss in Milan was more contained: the FtseMib index of Piazza Affari lost 0,6%. The euro strengthened against the dollar to 1,374, from 1,370 on Friday night. The yield on the 10-year BTP rose slightly to 3,18% from 3,16% on Friday).
BOTS FOR 7,5 BILLION AWAITING BTP ITALIA
Before taking any action, Frankfurt needs a clearer picture of price dynamics. The number two of the ECB Victor Constancio declared this before the European Parliament, emphasizing that any unforeseen adverse event "has the potential to cause inflation in the euro area to slide negatively". But first, he added, "We need to see what happens to inflation in April…it's possible we can see a recovery."
These statements had an impact on the government bond market: the yield on the 10-year BTP rose to 3,18% from 3,16% on Friday). The German btp/bund spread stood at 164,36 points at the end of the day, while the relationship with the Spanish stopped at 161,8 points. Nonetheless, the next round of mid-month auctions opens under the banner of optimism, which will culminate, on Tuesday 15th, with the offer of the Btp Italia. Yesterday evening the Ministry of the Economy announced that at the April 10 auction it will offer 7,5 billion 12-month BOTs (against 8,87 billion maturing).
TLC, PATUANO STUDY THE AT&T FORMULA
In Milan it was highlighted Telecom Italy with an increase of 1,7%. Two factors contributed to the movement. First of all, the announcement of the sale in France of SFR by Vivendi a Numericable, the company of the Israeli tycoon Patrick Drahi. The price, 17 billion euros, corresponds to approximately 7 times the estimated Ev/Ebitda for 2014. Much more than Telecom Italia traded on the Stock Exchange at a 2014 Ev/Ebitda of 4,8 times.
Furthermore, the CEO Marco Patuano in an interview with Bloomberg revealed a recent meeting with the CEO of At&t, Randall Stephenson, which stimulated the fantasies of the operators, given the declared intention of the US giant to land in Europe. "Just like At&t did - said Patuano - Telecom Italia wants to move to strengthen the network and transform it into a platform of high-value services". Today, AT&T customers pay an average of 66 dollars a month for subscriptions, against 18 for Telecom Italia.
Meanwhile fly TiMedia +12,74% on the eve of the signing of the agreement on TV frequencies with Rete A of the l'Espresso group, which instead lost 0,97% to 1,634 euros.
M&A EFFECT ON ITALCEMENTI. GE'S NO WEIGH ON ANSALDO
The mega merger between switzerland Holcim and the French Lafarge, from which the first cement group in the world will be born, with total revenues of 32 billion euros has not had, after the initial chills, great effects in Piazza Affari; Buzzi fell by 0,2%, Italcementi, after an initial jump, caps gains at 1,3%.
The effects of the failed deal with General Electric are heavier for Finmeccanica -1,7%. After the declarations of the president Ge Europe Nanni Beccalli, who has officially decreed the end of the interest for Ansaldo Sts, the stock lost 2,5%. For the sale of the group, Finmeccanica has "underway discussions with counterparties who have expressed interesting proposals" said the managing director of Finmeccanica Alessandro Pansa.
Among the industrialists worth mentioning: Fiat gained 0,7%. It has been confirmed that within the year the new production plant in Pernambuco in Brazil will start production of the Jeep Renegade model. The sales target for 2014 is set at 1 million cars and light vehicles.
Pirelli -2% after UBS cut rating to Neutral from Buy. Piaggio fell by 5,2%. The company has announced a swap operation between two bonds, aimed at extending the life of the debt and reducing its cost. In detail, the Pontedera group proposes to repay a 104,5-year bond maturing in 7, issued five years ago for 2016 million, at 150 to bondholders who subscribe to a new 7-year bond of 200 million issued at par. Still suffering in Yoox luxury -3,2%.
WEAK BANKS, ONLY BPM GOES UP
Red day for credit companies. Banca Popolare Emilia it fell by 2,1% on the assumption that a capital increase is being studied. MontePaschi lost 2,2%, Unicredit -1,7% Understanding -1,3%. Banco Popolare unchanged. Savings are declining Carige -4,57% after Friday's double-digit jump. Common shares lose 0,76%. Positive only Popolare Milano +1,4%.
CIR SPLASHES, THE SUN 24 HOURS RAISES
The letter sent by the creditor banks to the board of directors of Sorgenia to acquire the share of Cir through a capital increase, thus allowing the institutions to enter the capital of the energy company, is good for the stock Cir which closes with a growth of 2%. Atlantia concluded the trading day at 19,02 euros, down 0,73% after the disappointment of the French ministry on the Ecomuv project and the willingness expressed by Ethiad to enter the capital of Aeroporti di Roma to close the deal with Alitalia.
Pounce TV world +13,8% after the announcement of a preliminary agreement with the Chinese Guangdong Alpha animation. The new rise of 13,74% should be recorded, de The Sun 24 hours + $ 1374. Seat Yellow Pages yesterday started the liability action against former directors and further initiatives to protect the company.
