“The time has come to say enough is enough.” So Judge Linda Chan of the Hong Kong court put it Evergrande liquidation, the Chinese real estate giant, swamped by more than $300 billion in debt. The decision establishes the failure of the bailout plan pursued in recent years. The news arrived during the night, it is too early to evaluate the market's reactions, but the authorities have already announced measures to support the purchase of the first, or second, home in the metropolis of Guangzhou. The capital of Guangdong province, one of the richest in China.
“Cut rates without delay”, the French diktat
Even in France, on the other side of the planet, the governor of the Banque de France, Francois Villeroy de Galhau, says enough: “Interest rates – he says in an interview – they have to come down as soon as possible ". A diktat that falls in the week of the Fed's difficult decisions: the decline in inflation, writes the Wall Street Journal, recommends a decrease in the cost of money, but the central bank wants to proceed with the utmost caution. Nick Timeraos, the journalist closest to the Fed sees it this way: Powell will avoid repeating that rates can go up or down. The market has the burden of deciphering the change of direction while waiting for the long-awaited cut.
So much diplomacy leaves the markets are cold worried by the first US victims in the troubled Gulf scene. The hope that the negotiations for a truce in the Gaza Strip can produce results, European stock markets open slightly lower: FtseMib -0,21%.
Uncertain start for Europe after record earnings
But theEuroStoxx 50 index (4.639) accumulated a weekly gain of +4,2%, the best balance since March, and pushed to the highest in the last 23 years. The final push came from luxury, with the positive surprises of accounts of Lvmh. The confirmation at the end of the month of the break of the 4.600 area should open the doors to a further extension up to 5.500 points, the absolute tops of 2000.
Much will depend on the attitude of the banking sector. The prospect of a drop in rates could slow down sector stocks on the eve of the accounts. Data from BBVA, Banco de Santander, Deutsche Bank and, on Friday, Unicredit are released this week.
What supports Piazza Affari is the excellent resistance of the government. The BTP/Bund spread ten-year fell to 151 basis points, the lowest since April 2022. In mid-October it was over 205 basis points.
The Treasury relaunches Btp value
The Treasury will place tomorrow until 9 billion in the auction at the end of the month with the reopening of BTPs at 5, 10 and 15 years together with the Ccteu 2031. The issuance of the next BTP Valore has been announced, an instrument dedicated exclusively to retail customers, with a six-year maturity.
Meanwhile, the government is busy promotion of Mattei plan, the ambitious operation, mentioned many times by the prime minister. The inauguration in the presence of 40 Heads of State and Government of African countries.
Powell will decide on rates on Wednesday. The market is betting on a confirmation in the wake of the resilience of the American economy. The annual inflation rate was below 3% for the third consecutive month. The Fed tracks the PCE price measure for its 2 percent inflation target.
Amazon and Apple accounts arrive
But for Wall Street, the fourth quarter data coming from the companies will be even more important. It starts on Tuesday with Alphabet and Microsoft (CNBC), on Wednesday it's Boeing's turn, and then closes on Thursday with Amazon, Meta and Apple.
The extraordinary vibrancy of the technology sector (AI in particular) led Wall Street to complete the thirteenth positive week of the last fourteen with a series of new records. The resilience of the American stock market is so robust that not even the fall of Intel recorded on Friday (-12%), following less than phenomenal indications, it managed to reverse the upward trend.
We are now watching with growing interest the slew of important US economic data coming in the next few days, such as non-farm payrolls for January, and the key events driven by the Federal Open Market Committee meeting and the Treasury's refund announcement . The latter data, in particular, will outline the US government's financing needs for the next quarter.
Beijing launches new stimuli for the stock market
Coming off the best week of the last month, the Stock markets in Asia Pacific are almost all up. Nikkei of Tokyo +0,9%. Hang Seng of Hong Kong +0,6%. Kospi of Seoul +1,3%. BSE Sensex of Mumbai +1,1%. CSi 300 of the Shanghai and Shenzhen price lists -0,3%.
The Chinese central bank presented on Saturday liquidity guidance measures towards sectors deemed to be of national importance, a step that follows the unusual announcement of the cut in reserve requirements for banks on Wednesday. Second Ding Shuang, chief economist for China and North Asia at Standard Chartered, in the coming months interest rate cuts will probably be rarer, instead structural tools to guide and channel the flow of money will be used more.
The Middle East pushes oil
Oil on the rise for the fourth consecutive day. Last week ended with a gain of +6,3%, the largest in three months. A drone attack on US forces in Jordan has heightened concerns about supply disruptions in the Middle East, while Houthi rebels have stepped up their attacks on shipping in the Red Sea, hitting an oil tanker operated by Trafigura. risk of a widening of the conflict re-emerges as Russian exports of refined products are set to decline, with several refineries undergoing repairs following drone attacks. L'Iran he said he had nothing to do with the bombing of the US military base on the border between Jordan and Syria.
Barclays lowers Azimut, Jp Morgan does the same with Fineco
Azimuth: Barclays lowers its rating to Equalweight, target price at 27,1 euros.
Snam: RBC cuts Sector Perform.
Leonardo: Morgan Stanley raises the target price to 16,3 euros.
FinecoBank: JP Morgan cuts the target price to 13,4 euros.
stellantis: Jefferies updates the target price to 24 euros.
Saras: Shareholder Urion Holdings sold 34,5 million shares in six separate transactions between January 2-22, equal to about 3,6% of the refining company's capital, according to an internal dealing filing.
Enel lost a legal battle in the United States, the Financial Times reports. The Osage Native Americans have asked the company to pay about $260 million to remove 84 wind turbines from their land in Oklahoma. The request follows a federal district judge's decision.
Rai Way: la Repubblica reports that CEO Roberto Cecatto is working on an industrial plan including the hypothesis of a merger with Ei Towers.
