Sanctions from Europe, missiles from Russia. There is not a single sign of a decrease in international tensions on the horizon. Even the Beige Book offers a chiaroscuro image of the prospects for the US economy. But Wall Street is busy on other fronts, rejecting and promoting old heroes.
Yesterday was the day of reckoning for Netflix, plummeted by 37%, with a loss exceeding 54 billion. The big shareholders, starting with the raider Bill Ackman, have spilled avalanches of shares of the streaming company on the list, also causing a sharp fall in the Nasdaq (-1,22%). It could be the sign of a turnaround, bound to strike the entire Fang sector (including Facebook and Amazon itself) or the start of a new war for control of show business.
Elon Musk thought about it once again to restore good mood, with the stock market closed. Tesla announced incredible results: profits of $3,3 billion in the first quarter, or seven times last year's earnings. And the news that the company will sell 1,5 million cars this year, 60% more. The Stock Exchange awarded the stock with a 5% markup. In short, Musk has added another 23 billion dollars to his estate, more than half of what he has so far offered for Twitter. Two flashes, Netflix and Testa, which move uncertain markets, more than ever dependent on geopolitics.
China is on its fifth day of decline
The Nikkei of Tokyo, up 1% just before the end of the day's trading, is in the third consecutive session with the plus sign. However, the yen weakens again, the cross against the dollar is up by 0,4%, to 128,3. On the rise the Kospi of Alone (+0,4%) and the BSE Sensex of Mumbai (+ 0,7%).
For the CSI 300 index of price lists Shanghai e Shenzen, this morning's -1,3% leads to the fifth downturn session in five days. The Hang Seng's was also down Hong Kong, -1,7%. The Hang Seng Tech, -3%, touches the lows of the last month.
Yesterday President Xi spoke, but made no mention of the stimulus measures for an economy that risks not reaching the growth targets set by the authorities. UBS and Nomura cut their 2022 GDP forecasts below the plan's targets.
US futures up, T bond race slows down
Wall Street futures are up half a point this morning. Yesterday the Dow closed up 0,7%, flat the S&P.
Il Petroleum WTI is up 1% to $103 a barrel. Germany will stop importing oil from Russia by the end of the year, German Foreign Minister Annalena Baerbock said yesterday evening after a meeting with her Baltic counterparts.
The climate on the market for government bonds remains very tense, even if yields have come back slightly from the record peak at the beginning of the week. Ten-Year Treasury Notes up 2,87% from 2,93%. 2,50-year BTP at 2,60% from 2020%, on the highest since March XNUMX, German bund to 0,85%, from 0,91%, the highest since 2015.
On the agenda tomorrow in Washington a speech by Christine Lagarde in the context of the spring meetings of the Monetary Fund, in which the president of the Fed Jerome Powell will also take the floor.
The Bundesbank: no more ECB purchases, no "hasty increases"
“Economic data suggests the European Central Bank is expected to end its bond-buying program soon.” Joachim Nagel, president of the Bundesbank, relaunches from Washington the theme of stop the bond purchase program by the European Central Bank. The German banker expects i first rate hikes in the Eurozone starting from the third quarter, even if, he admits, before following the Fed's example, the Eurozone will have to wait for the next data to arrive from the economy, which is experiencing a worrying slowdown. The June appointment will be decisive, when the new macro estimates will arrive.
Bund rates skyrocket at auction. A new 15-year BTP is in sight
However, it is beginning to make inroads among investors the hope that inflation is approaching its peak. And so, albeit only partially, the race in government bond yields returns. And the euro recovered against the dollar to 1,086.
The 10-year BTP closed at +2,51% (from +2,55% yesterday) and the Bund of the same duration at +0,86% (from +0,91%) for a slightly higher spread to 165 points basis (+0,75%). Germany has placed 859 million euros in the Bund 2046, with rates shot up to 0,95% from 0,39% in the previous placement.
UniCredit writes that Italy could launch a new 15-year BTP these days, given the absence of regular auctions during the week.
Milan +1,03%. The quarterly push the price lists
Growing final for the Eurozone lists. The EuroStoxx 50 index, driven by the accounts of the blue chips, advanced by 1,6%. Business Square it is once again approaching 25 and closes with an increase of 1,03%, at 24.878 basis points.
Shines Frankfurt (+1,47%). Producer prices in Germany rose 30,9% year on year in March, feeling the effects of the war in Ukraine for the first time, according to data from the Federal Statistical Office.
Danone flies, chips run from Asml to Stm
Toned physique Paris (+1,38%), driven by the rally of Danone, +5,47%, thanks to growth in the quarter beyond expectations, but also following indiscretions from Letter A, a specialized newsletter, on alleged advances by Lactalis to acquire more of the group's business.
Corre Amsterdam, +1,26%, where it stands out Asml (+5,31%), which drags the entire chip sector with it in the light of a quarterly better than expected and positive forecasts on demand. JP Morgan analysts confirm their positive recommendation on the stock with an unchanged price target of 780 euros.
Run to Milan stm (+4%): the company will approve the quarterly report on the 27th.
Crédit Suisse loses out, Rio Tinto slows down
A Zurich (+0,35%) was weighed by the drop in Credit Suisse (-1,48%), bucking the trend in a well-bought European banking sector: the Swiss group expects a loss in the first quarter due to an increase in provisions for legal expenses, the slowdown in commercial activity and the impact of the war in Ukraine.
A London (+0,38%) misses Rio Tintoheld back by the decline in Chinese imports. Madrid + 0,89%.
The fever is back on Banco Bpm
Day of hikes for the banks in Piazza Affari under the pressure of the bond market. Leading the race is once again Bpm bank (+4,5%), at the center of maneuvers on the sector. Attention is linked to the new moves of Crédit Agricole, which presented a non-binding offer to purchase the institute's insurance joint ventures, currently in place with Cattolica through Vera Assicurazioni and Covea through Bipiemme Vita. Bloomberg reports that Axa has also expressed interest in purchasing Banco's bancassurance business, valued at around 1,5 billion euro.
In the spotlight Leonardo, a new team for Fincantieri
To report Leonardo (+1,7%), promoted to overweight by Morgan Stanley. It seems closer the integration project between Leonardo and Fincantieri. yesterday, then Cdp has presented the lists for the renewal of the top management of Fincantieri. Bono's long season comes to an end, new CEO will be Pierroberto Folgiero, while general Claudio Graziano will be the president.
The CDP also confirmed Roberto Tomasi as CEO of Autostrade, while Elisabetta Oliveri takes the presidency. Finally, Giuseppe Marino and Lorenza Franca Franzino were indicated as CEO and president of Ansaldo Energia.
Autogrill deflates, Sos for Pininfarina
Telecom Italy, writes Reuters, is negotiating a credit line with a pool of banks worth around 3 billion, which could be partially backed by a public guarantee issued by Sace.
Kpmg sos on Pininfarina: from the directors' report emerge "significant uncertainties on the going concern".
