Weak them European stock exchanges at the start of the week marked by the wait for the Fed's rate decisions. In particular, Business Square while waiting, it retreats by 0,65% just above the barrier of 30 thousand points. Some are heavy negative quarterly results. Between these Philips -3%.
The Dutch company, 20% owned by Exor, announced that it has suspended sales of sleep apnea devices and ventilators in the United States, after reaching an agreement with the Food and Drug Administration (FDA) on defective medical equipment. Bloomberg made this known, specifying that the Dutch group set aside 363 million in the fourth quarter anticipating additional costs for the rest of the year.
Bayer also down -5%, ordered to pay $2,25 billion in damages in the lawsuit over the carcinogenic effects of the herbicide Roundup.
The fever for fixed income is rising
But, even if the majority of observers are convinced that Powell will leave rates unchanged for now, the prospect of a near drop in interest rates is now taking shape, both in Europe and overseas. Supporting this prediction are the bond purchases: Ten-year Treasury Note deal al 4,10%. XNUMX-year bund at 2,24%, -4 basis points. The BTP/Bund spread ten-year fell to 150 basis points, the lowest since April 2022. In mid-October it was over 205 basis points. This testifies to the growing appeal of our governments, combined with the return of interest for the entire periphery of the eurozone.
Btp Value on offer until Friday
The ideal climate for the launch of third Btp Value, duration 6 years with loyalty bonus. The Ministry of Economy announced the launch of the third issue. The security dedicated exclusively to small savers is offered from today to Friday 1 March (until 13pm), unless closed early. The issue will have a duration of six years, coupons paid every three months with pre-established and increasing returns over time based on a 3+3 year "step up" mechanism, as well as an extra final loyalty bonus equal to 0,7% for those who purchase it during the placement days and holds it until maturity. A tempting opportunity for savers, albeit expensive for the Treasury.
The rush for bonds also affects Wall Street
the cbear on buying bonds it also involves US finance. On Wall Street, the bull run is underway in the world of corporate paper, which allows you to obtain an additional return, compared to government bonds of the same maturity, without extending the duration. The yield premium expressed by the Bloomberg Global Credit Corporate, a global index including low and high credit quality bonds, fell to the lowest levels of the last two years at 143 basis points, forty less than the levels at the beginning of the year. The yield on Asian rated bonds is even lower, at its lowest in history. The spreads are in a rather attractive range for investors,” he told the agency, Campe Goodman, portfolio manager of Wellington Management Company.
The enthusiasm is such that investors are willing to accept lower rates on some of the loans they own, rather than sell them off. Businesses have been ready to take advantage of this, also thanks to conditions that make their loans extremely easy to refinance, even a few months after their issuance.
Oil prices rise, Azimut suffers
The markets' interest is so focused on the next moves of the central banks that the advance of oil prices is overshadowed: Eni +1,63% ahead of Saipem (+ 1,59%).
On the contrary, the fever for fixed income plays a bad trick on managed savings securities: Azimuth falls by a good 4%.
