The "historic" agreement on tariffs that President Donald Trump considered "practically done" on October 11 is still being desired. Indeed, according to CNBC reports, Beijing is skeptical about the possibility of closing the negotiations within the year, thus avoiding the increase in duties already decided starting from 15 December. On the contrary, China reiterates that it will not sign agreements unless all tariffs are first withdrawn, a retreat too painful for the prestige of the US president.
The stalemate slows the upward race of the Stock Exchanges which, however, remain at the maximum: the extension of the concessions to US companies doing business with Huawei signals that the two Bigs have at least no intention of breaking.
HONG KONG RISES, DESPITE CLASHES
This is how the Asian price lists rise. Hong Kong's Hang Seng index is up 0,8%, as the siege on the Polytechnic continues. This morning Beijing strongly protested against the decision of the judges of the former colony to deem the ban on covering one's face to avoid facial control illegal. It will air tomorrow the offer of 500 million shares of Alibaba.
The index of Shanghai and Shenzhen also rose (+0,6%). The Stock Exchanges of India and Australia are also up, while those of South Korea and Japan are down. The trade agreement between Tokyo and Washington is ready for signature, but the most important piece is missing: the waiver of duties on cars.
The yen appreciated slightly against the dollar, to 108,6. Yuan dollar at 7,025 (+0,2%).
COTY (+2,6%) MAKES THE KARDASHIAN SISTERS BEAUTIFUL WITH 600 MILLION
Wall Street moved little: S&P 500 +0,05%, Nasdaq +0,11%. Dow Jones +0,11%: after being below par for most of the day, the index accelerated thanks to the push of defensive companies, including those of entertainment or consumer goods.
Coty +2,60% after the cosmetics company announced the purchase of control of Kylie Jennes, controlled by the Kardashian sisters, the most famous influencers in the world.
POWELL AND TRUMP COMPARISON
Yesterday Fed Chairman Jerome Powell met Donald Trump, his fiercest critic, together with Treasury Secretary Steve Mnuchin. At the end, the Fed issued a statement identical to the one issued after the recent FOMC, just to underline that no matters within the competence of the board were discussed. Trump has made it known that there has also been talk of the hypothesis of "negative rates".
Gold at 1.470 dollars an ounce, little moved. The reference future of copper, a sensitive thermometer of the global industrial situation, is slightly below the prices since the beginning of the year and 3% below those of six months ago, confirming the difficulties of the trade negotiations.
Oil fell, to 62,3 dollars a barrel, due to the effect of the first indications on the trend of crude stocks in the United States and the expected slowdown in shale oil production.
According to traders, the price of the placement of 1,5% of Saudi Aramco it could push investors to make room in their portfolios for the shares that will be placed with the IPO. Eni loses 0,8%.
The euro-dollar yesterday closed up 0,2% at 1,107, this morning was little moved.
THE COUPONS SEND BUSINESS AREA IN RED
Red day for the European stock exchanges which accelerated downwards in the afternoon when the CNBC correspondent tweeted that, according to a government source, the mood in Beijing on the trade agreement is marked by pessimism.
Piazza Affari (-0,53% to 23.463 points) was the worst price list, but the figure must be interpreted in light of the detachment of the coupons of Mediobanca, Danieli and Coima Res and the advances of Poste Italiane, Recordati, Tenaris, Terna, Mediolanum with an overall impact of 0,18% on the index.
The rest of the Eurozone is also weak. Frankfurt loses 0,27%. According to the Bundesbank, growth in the German economy will remain weak in the fourth quarter, but there is no reason to fear a recession as there are signs that the outlook for the industrial sector "is stabilising".
WAR FOR CONTROL OF THE STOCK IN MADRID
Paris -0,16%; London +0,09%; Madrid -0,07%. The pan-European operator Euronext and the Swiss exchange Six have begun the battle for control of the BME, the Stock Exchange Spanish, in an attempt to take over one of the last remaining independent European stock exchanges.
A slow day also for the debt market. The BTPs closed a volatile session with little volume in positive territory, in which the spread fell to 5 basis points compared to Friday's finale to 155 basis points. The ten-year rate stood at 1,21% (Friday 1,24%).
From the data published by the Bank of Italy as at 30 September, notes Banca Akros, Italian institutions increased their exposure to BTPs from 368 to 402 billion euros, with an increase of 9,23%.
DIESS: DIFFICULT YEARS AHEAD. VW BURNS 4 BILLION
“Gentlemen, the party is over: we are starting to experience four difficult years from 2020, marked by the decline in revenue and operating margin. But fear not: we are prepared”. Herbert Diess, number one at Volkswagen, did not sweeten the pill when he met the analysts: in addition to the problems associated with the transition to the electric car, the Wolfsburg giant takes into account the decline in sales in China, especially in SUVs. The market punished the German car flagship with a drop of 4,10%, equal to about 4 billion less in capitalization, triggering an avalanche effect in the sector. Peugeot (-3,78%) under fire after the downgrade of Deutsche Bank from hold to buy which underlines the risks of the merger with Fiat Chrysler, which in turn leaves 2,82% on the ground.
TOYOTA AND GM ALSO PUNISHED IN LOS ANGELES
California has decided that the administration will no longer buy FCA, Toyota and GM cars because they do not respect the pollution limits set by the state.
In Piazza Affari, Brembo (-2,3%) and Pirelli (-1,3%) also lost ground. Also in the red is Cnh Industrial (-2,7%).
TIM AND THE UTILITIES SHINE: NEW MAXIMUM FROM HERA
In evidence Tim (+0,5%), promoted to buy by Arete Research. Since the beginning of the year, the stock has recorded a 13% increase, less than the index (+29% the Ftse Mib) but from the August lows it has rebounded by 30%.
Bad banks. Unicredit (-1,5%) continues the phase of cautious correction following the rise recorded before and after the results. Fineco -1,5%. Unicredit will use a securitization of 7,75 billion corporate loans to replace the government bonds it has undertaken to provide to Fineco as collateral following its exit from the group. Ubi Banca +0,4%.
Asset management was also down, with the exception of Banca Mediolanum, +1,6%, but after having partially corrected the recent increases; the stock is always supported by expectations of good data and by M&A hopes, despite the denials.
Utilities are on positive ground: Enel +0,2%. Hera +0,6% to 4,0 euro, new all-time high. A2A down (-0,4%).
SAFILO BOOM, TREVI SHOULDER STRAP
There was no shortage of significant swings among the small caps, both upwards and downwards.
Banca Sistema +6%: the share is already at the highs when the news arrives of the acquisition of the pledged credit branch from Intesa.
Safilo up sharply (+11%). Analysts and traders point out that the stock is very compressed due to uncertainties about licenses and that it has abundant room for upside, if at the next meeting for the industrial plan, in the first half of December, the company manages to give visibility to the future.
Trevi (-15%) was the worst stock on the list after the decision of the Court of Forlì which on Friday rejected the homologation of the restructuring agreement reached with the creditors presented by the company. With a note issued in the afternoon, Trevi Finanziaria Industriale explained that it "deems it improbable that the capital increase approved on 17 July last can be carried out within the current year".
