The great duel between President Xi and Donald Trump in the Buenos Aires ring is about to begin. And the two Bigs exchange their first messages. A global agreement is very difficult, reads the editorial of the China Daily, but much progress can be made "if the Americans present themselves with a constructive will". Meanwhile, for the first time in more than two years, Beijing's industrial production is lagging behind.
Trump, meanwhile, continues his show. "We are very close to an agreement with China - he writes - but I don't know if we want it". The Stock Exchanges reflect the climate of expectation, without getting too many illusions. “Without detracting from the importance of tariffs and the meeting between Trump and Xi – writes Alessandro Fugnoli – any failure of the negotiations will be absorbed next week without too much damage (or at least without prolonged damage) in this new context. If something good should come out of the meeting, we will have an ingredient for the year-end upside”. While waiting:
- The slowdown in the PMI index has not slowed down the Chinese stock markets. Shanghai's Csi index rises by half a point, Hong Kong is also positive. Tokyo +0,3% is starting to end the week on the rise.
- The US markets were also slow on Thursday: Dow Jones -0,11%, S&P -0,22, Nasdaq -0,25%.
- Reading the minutes of the last Fed meeting, the Fed's mini turnaround is confirmed: it is correct, we read, that a gradual approach to rate hikes continues but part of the board expressed concern about the timing, given the increase “of the uncertainty about growth”.
- Falling interest rates hurt banks Goldman Sachs -1,8%.
Oil Brent climbs 2,3% at 60,1 dollars, after having touched the lows of the last four years in the morning. Russia would be in favor of supporting OPEC's line of action on production cuts. The alliance between the cartel and Moscow seems to have strengthened in recent days.
In anticipation of the US-China confrontation, European markets cautiously celebrated the Fed's shift towards a more expansive (or, at least, non-recessive) policy. The 0,32-year Bund fell to a three-month low of 3%. The XNUMX-year Treasury Note is yielding around XNUMX%, a level not seen since late September. This has also eased the pressure on the Italian debt pending the next developments in the negotiations with Brussels.
The premier Giuseppe Conte, upon arrival in Buenos Aires, he said that the spread "does not leave the government indifferent". "The fact that the spread is still high as far as we are concerned is a matter that does not find me distracted - he added - We are working to get this situation over". Matteo Salvini has meanwhile opened a window: "2,4% is not written in the Bible".
- Milan +0,23% closes at 19.160 points on trades for less than two billion.
- To note the decided rise in the end of the Star index +1,2% thanks to the inspiration of some “stars”: Guala Closures+10%, D'Amico+8%, El.En +7%, Falck Renew and Amplifon +5%. From the lows of November 22nd (30.250 points) the gain is more than 5 percentage points, a movement that coincided with the return of investors' appetite for risk around the world.
- On positive ground Zurich +1,17%; London, +0,48%; Paris +0,92. Weak Madrid -0,3%.
- In pale red Frankfurt -0,01% weighed down by the new judicial problems of Deutsche Bank -3,48%. Yesterday 170 police officers including the Guardia di Finanza and the federal police were sent to various bank offices by the Frankfurt public prosecutor's office. The money laundering investigation pertains to the Panama Papers investigation.
- Bayer -0,7% has announced its intention to cut 12 jobs, 10% of its workforce.
Positive day for bonds: the spread has cooled down to 287.70 points (-1,37%), the Italian ten-year yield drops to 3,22%.
- The primary is also good: the Treasury has assigned all 4,250 billion euro of 5 and 10-year BTPs with declining yields. The rate on the five-year bond, sold for 2 billion, fell to 2,35% from the previous 2,58%, while that on the 2,250-year BTP, sold for 3,24 billion, dropped to 3,36% from 1,34%. But demand weakened: bid-to-cover fell to 1,48 (from XNUMX).
He takes his leave from Piazza Affari amidst the fireworks Luxottica +4,3% which will be delisted on 4 December after the success of the public exchange offer launched by EssilorLuxottica (Essilux, as patron Leonardo Del Vecchio called it) which, taking into account treasury shares, reached 93,3 .32% of the capital. Essilor Luxottica will have the obligation to purchase the remaining 4 million shares not included in the offer with methods and times to be communicated by December XNUMXth. The search for the new CEO, it was reaffirmed at the meeting, will begin with the new year.
The most important tech stocks on the list are coming to the rescue:
- Rebounds from year lows Prysmian +4% after announcing a non-binding memorandum of understanding with Gcc Electrical Equipment Testing Laboratory (Gcc Lab), a testing laboratory for cable systems for the transmission and distribution of electricity in Dammam (Saudi Arabia).
- Positive stm +2,4%, purchased at sustained volumes. The stock started to rise again after reaching a low for the year at the end of October in the wake of the recovery of the Nasdaq.
- Leonardo also did well +1,43% who signed a new credit line with a pool of Italian and international banks, intended for the refinancing of existing debts. The credit line has an amount of 500 million euro and a duration of 5 years.
The bankers are negative. The Italian sector index shows a drop of 0,9%, much more than the corresponding European Stoxx (-0,4%).
Bpm bank -0,2% pending the decisions of the board of directors who chose to proceed with the negotiations on Thursday evening with two of the three consortiums in the running. The short list includes doBank/Fortress/Illimity and Fonspa/Elliott. The bank intends to sell almost the entire portfolio, between 7,5 and 8 billion euros, including the management platform, and from the raises it aims to obtain a price close to 25% of the nominal. Green light from the board of directors Carige the bond loan of at least 320 million euro to be issued by the end of the year linked to the capital strengthening plan requested by the ECB which will be subscribed by the voluntary Scheme of the Guarantee Fund for the protection of deposits
Perennial Mount Paschi+ 5,9 %. Weak the Bigs: Unicredit -1,2% Understanding -1%. Bringing up the rear of the price list Fineco -2,9%.
Raising day for the Agnelli team. It shines Ferrari +3,1% ahead of Exor +2,1%. Up too Cnh Industrial +0,9%-
Fiat Chrysler +0,9% filed Thursday with the union the plans for Italy, allaying concerns about the risk of disengagement from the peninsula. The new head of the EMEA area, Pietro Gorlier, defined the rumors about the sale of Comau are completely groundless. CEO Mike Manley explained that yes focuses on Italy as a production hub for cars to be destined for the global market with the new electric and hybrid engines, promises 5 billion in investments, 13 new or renewed models and saturation of the plants by 2021. A new production line will be installed in Mirafiori to make the electric 500.
