“I agree, for now, with the three increases for the current year. But, if necessary, we will do more”. Patrick Harper, head of the Philadelphia Fed with voting power on rates, thus sided with the other bankers, from Loretta Mester of Cleveland and Raphael Bostic of Atlanta, who expressed themselves in favor of an increase in the cost of borrowing before of the end of winter. Powell's deputy, the Democrat Lael Brainard, shares the same line today in her hearing in the Senate and will say that curbing inflation will be the Bank's main commitment. The price race, which jumped to 7% in the likes not seen since February 1982, threatens to overwhelm the Democrats.
In short, the picture is clear: the first increase in March, then another two (or perhaps three) adjustments upwards of a quarter of a point. Less understandable is the phlegm with which the market limits itself to acknowledging that the season of easy money is now over. The Stock Exchanges, in fact, limited themselves to noting that the figures, while disturbing, are not worse than expected. And from tomorrow the accounts of the big banks, starting with JP Morgan, should demonstrate that Wall Street is able to cope with a mini-crisis without problems.
ASIAN EXCHANGES SLOW DOWN, EVERGRANDE -3,5%
The effects on the Asia Pacific stock exchanges were modest. settling in this morning after yesterday's sharp rise.
The Bloomberg APAC index is flat. Tokyo's Nikkei loses 0,8%. CSI 300 of the Shanghi and Shenzhen price lists -1,1%. Hong Kong's Hang Seng +0,1%. Taipei Taiex unchanged. Kospi of Seoul -0,5%.
The Chinese real estate is once again causing some concern, called upon to settle accounts with creditors in the coming days. Evergrande marks a drop of 3,5% on the eve of the meeting of the holders of one of its bonds, called to vote on a request to postpone the payment of interest.
RECORD RAW MATERIALS: NICKEL AT THE TOP
Australian stocks closed up 0,5% on a boost from commodity companies. Nickel, used in electric cars, has been at a ten-year high.
Kazakh shares plummeted by 40% in London recover days of the protest. In 2021 the local listing, rich in mining titles, had risen by 81%.
US TREASURY AUCTIONS GOOD. NASDAQ +0,23%
Closing up for US markets: Dow Jones +0,11%, S& 500 +0,18%. NASDAQ +0,23%. Goldman Sachs and Morgan Stanley, the two banks most linked to capital movements, retreat. The financial index rises by 0,3%.
The 1,74-year Treasury Note was flat at 36%. Yesterday the Treasury placed 1,72 billion dollars of ten-year bonds, at a rate of 2,5%, bid to cover at XNUMX, on the highs of the last three months.
BRENT AND GOLD TO NEW HIGHS
Brent and WTI oil hit two-month highs yesterday and are flat this morning.
Fourth consecutive day of gold appreciation, arriving with +1% yesterday at 1.825 dollars an ounce.
EU, INDUSTRIAL PRODUCTION DROP BY SURPRISE
It's not just inflation that affects a particularly challenging start to the year. Eurostat data shows that in November industrial production in the euro area fell by 1,5% compared to a year earlier: economists had expected an increase of 0,5%. Behind the disappointing data, there is above all the fall in the production of capital goods (-9,8%) which outweighed the 4,4% increase in durable consumer goods and a 6,1% increase in non-durable consumption. But the macro picture, also complicated by the declining forecasts of the World Bank, does not slow down the markets of the Old Continent, which remain optimistic and close positively.
THE SPREAD DOWN TO 135. THE YIELD OF THE BOTS RISES
Against this background, the tension on Italian bonds eased. The spread with the German 135-year bond returned to 2,65 basis points (-0,1) and yields decreased slightly: -1,34% for the Bund against XNUMX% for the Btp.
Conversely, the yield on annual Treasury bonds rose: -0,444%, up 2 cents on the previous month's auction. Today it's the turn of medium-long term auctions.
CORPORATE LOAN ACTIVITY GROWS
Germany is also active, collecting 1,26 billion euros in the Bund over 30 years. Portugal has syndicated 3 billion in twenty years with a demand above 20 billion.
Meanwhile, the corporate offer does not stop: after Unicredit, yesterday it was the turn of Credito Emiliano, Crédit Agricole and Snam.
MILAN RISES, AMSTERDAM AT THE TOP DESPITE PHILIPS
The European price lists are up, in line with the indications coming from the US markets. Piazza Affari grew by 0,65%, to 27.714 points.
Amsterdam stands out for the second day in a row (+1,03%). But this time it's not the tech titles that shine: Accelormittal, Prosus and Just Eat do the honors. However, Philips collapsed (-15,2%) after forecasting a drop in core profit for the fourth quarter of about 40%, due to the global shortage of components and after having recalled some respirators. The Dutch health technology company also announced a new provision of 225 million euros to recall the product, given the need to repair more devices than initially planned.
Progress is fractional in Frankfurt +0,43%; Paris +0,75%; Madrid +0,13%. Well London +0,81%, indifferent to the political vicissitudes of Prime Minister Boris Johnson.
MANAGEMENT RUNS, SHAREHOLDERS BOOM
To give Piazza the charge are the asset management securities, in great evidence in the season of decisions on new savings by families. Azimut leads the race (+4,22%) on the wave of a record profit (600 million) higher than the guidance, closely followed by Fineco (+3,71%) and Banca Mediolanum (+1,91%); confirmed buy for Goldman Sachs (target price at 101, euro).
IVECO PUT IN FIVETH
Iveco kicks into gear (+5,71%): Intesa Sanpaolo analysts have started coverage with a target price of 16,9 euros and a purchase indication. The investment bank observes that "in terms of equity in Europe, industry deposits had a strong increase in December, supported in particular by passive funds which recorded 40 billion euro, the highest value in the last 12 months".
Diasorin (+2,7%) and Eni (+1,9%) are also in positive territory.
UNICREDIT, THE MARKET REJECTS THE RUSSIAN CARD
Opposing destinies for the two big names in the banking sector: Intesa Sanpaolo advances by 2,6%; on the contrary, Unicredit (-3,2%) collapsed, which was not helped by the rumors about the possible interest in the Russian Otkritie Bank, owned by the Central Bank after the 2017 bailout due to an excessive amount of non-performing loans. The Italian group could enter the data room during the week together with other groups interested in the operation. Both Reuters and Bloomberg write it.
POP SONDRIO SHINES WAITING FOR BPER
Popular Sonddrio (+3,34%) goes against the trend, awaiting an offer from Bper, now engaged, under the direction of Unipol, in the creation of the third banking hub.
At the bottom of the list are also Amplifon (-2,4%) and the luxury sector: Moncler -0,3%.
THE SHADOW OF TAXES ON ENEL, A WARNING TO KKR FROM GIORGETTI
The utilities moved little: Enel -0,1% on which BofA reduced the judgment from buy to neutral, with a target price falling from 9,65 to 8 euros.
Italian Economic Development Minister Giancarlo Giorgetti said the government was considering taxing higher profits from energy companies to finance higher electricity and gas bills.
Time -0,2%. Giorgetti himself claims that the Italian government intends to protect the assets it deems strategic in the event that Kkr proceeds with a takeover bid on the telephone company.
LILY IN THE METAVERSE: AN ANOTHER-WORLD RISE
Outside the main basket Giglio Group (+20,51%) closes a fireworks session following the announcement of the opening of the new business unit "Giglio Meta" dedicated to the development of Metaverse and NFT (non-fungible token) projects.
