While awaiting the data on new US jobs, the markets are acknowledging that the China emergency is now behind us. With fresh gains, Shanghai and Shenzhen ended an excellent week this morning with gains of 4,8% and 5,8% respectively. Tokyo was also positive: +1,4% in the last five sessions thanks to the fall of the yen against the dollar.
Operators are now focusing on the most awaited data: new jobs in the US, the penultimate survey before the Fed meeting which should kick off the first US rate hike since 2008, an event that is no longer scary: the decision does not it will represent a change of course in central bank policy which will remain accommodative. A little caution, however, does not hurt. And so Wall Street marks time: Dow Jones -0,02%, S&P 500 -0,11%. The Nasdaq fell 0,29%.
Facebook shines on the US market: +5% to 110,65 dollars, a new all-time high. New alarm signal for chips: Qualcomm falls 15,3% after the data for the quarter. The macro data is in chiaroscuro: new weekly unemployment claims in the USA have grown to 276 from 260 the previous week.
Economists estimated new requests virtually stable at 262. On the other hand, there are good indications in terms of non-agricultural productivity which rose by 1,6% in the third quarter, less than the 3,5% of the previous quarter but above the estimates of economists who forecast a drop of 0,5%.
The euro/dollar exchange rate is stable at 1,086. In an interview with Bloomberg, Bank of England Governor Mark Carney said markets need to prepare for a UK rate hike in 2016.
ITALY SPEEDS UP, PIAZZA AFARI SLOWS DOWN
Contrasted day for the European Stock Exchanges. Paris and Frankfurt rose by 0,6% and 0,3% respectively. Down Milan (-0,40%), conditioned by the numerous quarterly data. The president of the ECB Mario Draghi reiterated his accommodating attitude. "We have many tools at our disposal - he said speaking at the Catholic University - We are facing a situation in which the dynamics of prices is very weak, the macroeconomic framework is still uncertain".
But there are comforting signals: the bulletin of the European Commission has revised upwards the growth estimates of the Eurozone for 2015: the GDP is expected to increase by 1,6%, compared to +1,5% in May. In 2016, growth in the euro area will be 1,8% and 1,9% in 2017. This year, Italy will grow by 0,9%.
PATUANO DILUTE THE FRENCH AND CREATE ALMOST 3 BILLION IN VALUE
The twists and turns at Telecom Italia (-1,8%) never end. The board of directors meeting yesterday to approve the accounts for the third quarter (revenues - 6,9%, profit at 362 million) surprisingly put the project to convert savings into ordinary shares to the vote. The operation envisages that shareholders without voting rights will be offered to exchange their stock for an ordinary share, adding 9,5 euro cents and thus renouncing the privilege on the dividend.
The transaction is optional for now, but will become mandatory at the end of the offer period at a share swap of 0,87 ordinary for each savings share. The company reserves the right to suspend the conversion if the withdrawal will cost more than 100 million euros. The meeting to amend Telecom's Articles of Association, necessary to start the transformation, is convened for December 15th. On 17 December it will be the turn of the savings shareholders.
The move, among other consequences, will have the effect of diluting the voting rights of current shareholders by 31%. In particular, Vivendi's stake will drop from the current 20,03% to 14%. The calculation is more complicated for Xavier Niel (today at 15%): the move by the board could trigger early conversion clauses for the options purchased by the Iliad patron.
In any case, the company will collect approximately 600 million euros from the market with the transaction. Secondly - by eliminating the 166 million extra coupons linked to the savings shares - the de facto group will find itself saving around 2,3 billion. And so, between receipts and lower costs, Telecom creates about 2,9 billion of greater value which out of 19 billion shares (assuming the total conversion of RNC into ordinary shares) translates into about 15 cents more per share.
GENERALI INCREASES PROFITS AND DIVIDENDS, FIREWORKS ON MANAGEMENT
Performance in no particular order for the financial sector. Generali lost 1,1% after that data for the quarter. According to analysts, the accounts show a gradual growth path despite the weakness of the financial markets. Net income for the quarter was slightly below expectations but on the other hand Life business showed a marked improvement in profitability and the Economic Solvency ratio was stronger than expected. The balance for the nine months remains in progress compared to a year before and for the entire year the company sees a figure "significantly higher than in 2014". Mario Greco's dividend policy is also relevant.
The accounts instead give wings to asset management companies: Mediolanum (+3,6%) was the best blue chip: the first nine months of 2015 closed with a net profit up 26% to 311,4 million and an interest margin of 187,5 million, from 174,5 million in the corresponding period last year.
Azimut also performed well (+2,6%): the June-September quarter recorded a net profit of 27,3 million compared to 42,6 million in the corresponding period of 2014. But analysts were expecting 21 million euros.
Weak Banca Generali (-0,86%): Banca Imi lowered the target price on the stock to 30,25 from 32,2 euro, confirming the hold recommendation.
Banks are mainly negative: Monte Paschi drops by 2,2%, Unicredit -0,1%, Banco Popolare (-2,4%) and Pop.Milano (-1,6%) fall.
GOLDMAN AX ON ENERGY. OIL UNDER PRESSURE
The descent of oil continues to grind victims. At the City, the shares of Amec Foster Wheeler collapsed. One of the most prestigious brands in the consultancy sector. The stock lost 23%. Brent is traded at 48,3 dollars a barrel (-0,4%), Wti at 45,8 dollars (-1%).
The European Stoxx index of the Oil sector falls by 1,9%. Eni dropped by 1,1%, Saipem -3,2%, Tenaris lost 0,1% at the end of a day with strong ups and downs: the results communicated today show a sharp drop in revenues.
The main utilities, which ended up under the ax of Goldman Sachs, also fell back: the American broker downgraded Enel -1,5% to Sell, Enel Green Power -0,8% to Neutral from Buy and A2A +0,3% to Neutral from Buy.
BLACK PRYSMIAN SWEATER. THE VOLKSWAGEN STORM DOES NOT TOUCH FCA
Among industrialists, Finmeccanica recorded a drop of 0,8%. Yesterday the management said that the American subsidiary Drs shows improving results which suggest the conclusion of the phase of gradual decline. Banca Akros raised the target price on the stock from 14,7 to 15 euros, confirming the buy recommendation.
Fiat Chrysler advanced by 0,8%, StM +0,7%. Prysmian slips (-3,1%), worst blue chip of the day despite better than expected results.
