Abrupt setback for the Stock Exchanges, chilled by the crisis in relations between Washington and Beijing following the position taken by Congress on the repression underway in Hong Kong. But the Chinese reaction, beyond the rhetoric, seems to leave room for an agreement on tariffs, even if times are getting longer: it is difficult to avoid the new wave of tariffs, equal to 160 billion dollars of goods, arriving on December 15th.
Hong Kong's Hang Seng index loses 1,6%, Tokyo's Nikkei 0,8%, Shanghai and Shenzhen CSI 300 indexes 0,5%, Seoul's Kospi 1,8% %.
The yuan weakens to 7,04 against the dollar.
Wall Street's losses were heavy yesterday: Dow Jones -0,41%, S&P -0,38%, Nasdaq -0,51%.
Brent oil changed hands this morning at 62,2 dollars a barrel, down 0,3%, on the effect of the sharp drop in US strategic inventories: yesterday North Sea crude gained 2,5%.
"SO MARCHIONNE PUSHES FOR THE MERGER IN DETROIT"
Attention was focused on an unprecedented conflict in the car's troubled history. General Motors (-3,02%) sued Fiat Chrysler, down 3,72% on the US stock market (in Milan the share had closed at -1,17%) for bribing three leaders of the car union , the Uaw, including President Gary Jones (already resigned due to accounting irregularities that emerged from internal investigations) with the aim of obtaining advantages in contract negotiations. The accusation, leveled at three executives of the Italian-American company, concerns the union agreements of 2011 and 2015 but also the "historic" pact of 2009, when the union signed an agreement with Sergio Marchionne that made possible the recovery of Chrysler , already given for dead. GM brings up Marchionne himself, who allegedly authorized the bribes in favor of the trade unionists with the aim of damaging GM and thus favoring the integration plan between the two houses. Among the evidences of the prosecution there would also be the adhesion of the union to the introduction of the Wcm, the Japanese production system, in the factories of Detroit.
FCA: "THEY WANT TO PREVENT THE AGREEMENT WITH PEUGEOT"
"An accusation without foundation" was the reply of FCA, which says it is "astonished by the lawsuit both for its contents and for the timing. We can only assume that he intends to hinder the proposed merger with PSA, as well as our negotiations with the United Auto Workers union” for the renewal of the contract. At the origin of the accusations there is an investigation by the FBI which in 2017 led to the indictment of Alphonse Iacobelli, at the time in charge of union relations for the US home, for having given away travel, clothes and jewels for 1,2 million dollars to union leaders between 2009 and 2014.
LISTS IN RED, HOLDS PIAZZA AFFARI
Only Piazza Affari was able to resist yesterday the wave of pessimism that swept European stock markets, in line with Wall Street. The Ftse Mib index (+0,10%) closed in positive territory, at 23.351, supported, among other things, by the good performance of a large group of "medium" companies.
Paris (-0,30%) and Frankfurt (-0,39%) are doing worse. German payments firm Wirecard fell 2,9% on news that auditor EY did not sign off on the company's Singapore audit for 2017, citing irregularities.
The drop in oil and mining stocks weighs on the City's listing: London -1,00%. The collapse of the Kingfisher household goods chain (-6,5%) after the decline in sales in the third quarter also weighed heavily.
SPREAD TO 156, BUT IT'S A CLASH ON THE ESM
On renewed fears about the US-China talks, Bund yields hit their lowest levels for almost three weeks (-0,35%), in the wake of the drop in Treasury rates, also at their lowest levels for three weeks, to 1,74 % to then drop this morning to a new low of 1,707%.
The BTPs settled in the 1,20% area, after having closed at 1,24% the previous session. In closing, the spread narrowed to 156 points from 158 on the eve.
Meanwhile, it's hot the debate on the reform of the ESM, which provides for access to credit for states in difficulty, but imposes more rigid limits which imply adherence to the rules of the Stability Pact. A key step, according to the Franco-German axis, to be able to proceed with the Banking Union, but very demanding, perhaps too much, for the Bel Paese, especially as regards exposure to government bonds.
Political controversy arose on the subject. "No to operetta sovereignty", thundered Prime Minister Giuseppe Conte thus replying to Matteo Salvini, who rose up yesterday against the project already illustrated when the Northern League leader sat in government.
Tepid The governor Ignazio Visco, who after the first perplexities, however tried to throw water on the fire: "The governor Visco - specifies via Nazionale - did not express an unfavorable opinion but warned about the risks in the absence of an overall reform of the governance of the euro area”.
Economy Minister Roberto Gualtieri commented: “It would be good for the debate to focus on more relevant issues at the center of the European discussion such as the introduction of a common deposit guarantee and its conditions which must not be penalizing for Italy ”.
A draft of the reform was approved by all euro zone finance ministers in June and is expected to be finalized by heads of state and government next December.
NEXI SUPERSTAR, WAITING FOR BANCA INTESA
Asset management securities also contributed to supporting Piazza Affari yesterday. The race is led by Banca Mediolanum (+2,3%), Azimut (+1,1%) and Fineco Bank (+1,2%), which recovers the decrease on the eve. Well tuned by Bper (+1,3%), at the center of the alleged M&A manoeuvres. The recovery of Ubi continues (+1,8%), after the sales on the day of the results.
At the center of attention Nexi (+4,9%), in negotiations to strengthen the commercial partnership with Intesa (-0,3%). The electronic payment company has excluded Intesa from acquiring a 30-40% stake, however leaving market expectations on a more modest shareholding alive.
ALITALIA DOESN'T TAKE OFF, ATLANTIA MISSES
Atlantia fell sharply (-2,58%) after the postponement of the decision on a possible entry into Alitalia. “The conditions necessary for Atlantia to join the Consortium for the purpose of submitting a possible binding offer have not yet been met,” reads a note. The same communication came shortly after from FS.
Tim (+2,4%) accelerated in the last hour and a half of trading.
The performance of Recordati (+2,89%) and Amplifon (+2,11%) also drove the list.
In luxury, Moncler +1,7%. Safilo's march continues (+6,9%).
ROMA ADVANCES, WAITING FOR THE NEW PARTNER
In great evidence the title of Roma (+16,6%). In the evening the club confirmed the negotiation with the American tycoon Dan Friedkin for the sale of a stake. Worth mentioning in Aim is Innovatec (+8,28%) in the wake of the strategic partnership with Plastica Alfa, active in the world market for water treatment and distribution.
