“I'm not sure I've brought the inflation rate steadily back below 2%.” “Therefore – said Jerome Powell – I will not hesitate to raise rates further if I deem it necessary”. The president of the Fed thus managed to interrupt the positive streak of rises in the stock markets as well as causing the dollar and bond yields to rise. But Powell did not cite a specific risk that would justify further tightening. And the markets continue to think that at the next meeting (December 13) the Fed will leave rates unchanged. “Powell – explains Mohammad El-Erian – is aware that the most delicate moment is when trust replaces caution. And it moves accordingly."
European markets slowing down
- The Fed president's mission was successful: this morning, in the wake of Wall Street, the markets slowed down. European stock markets open lower with Ftse Mib in Milan which scores – 0,5% at 28.499 points in line with the drop announced by the EuroStoxx50 futures -0,7%.
- Yesterday the FtseMib closed up by 0,7%. Leading the way is Amsterdam +1,97% driven by the rally in Adyen, leader of the payments sector. On Piazza Affari its "colleague" Nexi advanced by 9,7%.
Small is beautiful for banks too
- Some banks achieved new multi-year highs: Popolare Sondrio, Credem, Banco BPM, BPER. The two big ones are missing, Intesa and Unicredit, but the rally of the smaller banks was enough to push the Ftse Italian Banks index to less than half a percentage point from the record of the last seven years.
- The outperformance of the FTSE STAR (+1,5%) and FTSE Mid Caps (+1,4%) indices continued compared to the FTSEMIB (+0,6%), an event which confirms the revival of interest in "second-class" securities. band". On a weekly basis the gap is almost 3%.
- After the stock market close, Fitch comments on the sovereign rating, currently 'BBB' with a stable outlook. S&P Global and Dbrs left everything still. Next Friday it will be Moody's turn whose rating is one step away from junk.
- European bond yields rise (slightly): German Bund to 2,65% from 2,62%, ten-year BTP to 4,50% from 4,47%.
Bond mission for hackers. A key saves the rod
The US bond market is turning yellow. Wednesday's auction was also affected by the cyber attack against the Industrial & Commercial Bank of China: the largest bank in the world was unable to manage operations on US debt securities for a few hours. To overcome the impasse it was necessary to use a USB stick that an official took by taxi to the Treasury headquarters.
This is also why the auction of thirty-year bonds received a lukewarm reception from the market.
Wall Street interrupted its positive streak, after nine consecutive sessions of growth, the Nasdaq lost 0,9%.
Cold shower for Tesla: “Musk is also a risk”
Disney +6%. The entertainment giant ended the quarter with a profit of 82 cents per share, compared to a forecast of 71 cents per share. Net sales rose 5% year over year to $21,24 billion.
Tesla -4% HSBC initiated coverage with a “Reduce” rating and a target price of 146 USD, which implies a decline of -34% compared to the last close. Analyst Michael Tyndall writes in the note that Elon Musk "is an asset, but he also represents a risk."
Adjustment session, guided by Powell's cautious words. Yield on the 4,60-year TNote at 4,50% from 5%. Biennial at 4,90% from XNUMX%.
Cold shower for Taiwanese chips
Le Stock Exchanges of Asia Pacific they drop at the end of the week. Nikkei -0,2%, CSI 300 -0,6%, Hong Kong -1,5%: Semiconductor Manufacturing International loses -6% on the day of the publication of the quarterly data: the net profit of the Chinese manufacturing giant chip reported an 80% drop in profits. Kospi of Seoul -0,7%.
Oil in the red, bitcoin +125% since January
Brent above 80 dollars. Thanks to a timid rebound. the second timid rebound. But the week ends in the red for the third time in a row with a provisional loss of around -5%.
Bitcoin still rising at $36.712). Yesterday, at the moment of maximum euphoria, the price reached 37.973 USD, a level it had not seen since May 2022. Since the beginning of the year the price has grown by +125%.
Leonardo confirms guidance, S&P promotes Tim
Leonardo confirmed the 2023 guidance after the results of the first nine months which saw growing profits and revenues. The company is working on a new industrial plan which will be presented to the market with the 2023 accounts, said CEO Roberto Cingolani.
Tim. S&P has placed the company on positive watch after the Board of Directors' approval of KKR's offer on the fixed network, as the operation will lead to a significant improvement in debt.
Pirelli closes the quarter with revenues of 1,72 billion euros, down 6% year on year: organic growth +2,2%: volumes -4,6%, price/mix +6,8%. Ebitda equal to 377 million euros, -2%. The results are in line with forecasts, prices have balanced the low volumes. Indications for 2023 have improved slightly.
Webuild. Since the beginning of the year, the company has recorded a record of new orders with 22 billion euros of projects acquired since the beginning of the year, including 4,1 billion of projects for which the group is the best bidder. Results that allow the group to significantly exceed the guidance of 10-10,5 billion for the whole of 2023.
UnipolSai closes the first nine months with a consolidated net profit of 586 million (compared to 616 million at 30 September 2022 calculated with the previous accounting standards) down by 4,9%. On a like-for-like basis, profits would have more than doubled (+123%),
Geox closed the nine months with revenues of 582 million, up 2,3% at current exchange rates (+4,1% at constant exchange rates).
