The US indices touch their highs, but Tesla, the first to inaugurate the week of the most awaited accounts, for once did not surprise Wall Street: despite the fact that the house has increased revenues (+74% to 10,39 billion) and profits ( 438 million), the share lost more than 1% after the Stock Exchange. But the parade of big names continues: between today and Thursday the accounts of Microsoft and Alphabet (today), Apple and Facebook, or 40% of the capitalization of the S&P index, will be announced. As we await tomorrow's accounts and the Fed chairman's press conference, Asian markets are lagging behind. The Eurozone, on the other hand, is focused on delivering plans for the Recovery Fund.
SOUTH KOREA BEYOND THE PANDEMIC: GDP +1,6%
Tokyo's Nikkei loses 0,2%. The drop in Sydney was more marked (-0,5%). The Singapore Stock Exchange goes up. Slightly down the Kospi of Seoul. South Korea's economy, in the first quarter of 2021, reached a size larger than before the outbreak of the pandemic. The GDP rose by 1,6%, against the +1,1% expected by the consensus. The rally is due to the success of the car and the chips.
China's financial markets are down, alarmed by the activism of Beijing's supervisory authorities. The State Market Regulatory Administration (SAMR) has placed under investigation, for suspected practices contrary to competition rules, Meituan, a home delivery food company that thanks to a gigantic seven billion dollar capital increase wants to expand also in other fields. Samr is the same person who fined Alibaba a few weeks ago.
ELON MUSK MAKES MONEY WITH BITCOIN AND GREEN CREDITS
On Wall Street yesterday new records for the S&P 500 index (+0,18%) and for the Nasdaq (+0,87%). The Dow fell slightly (-0,18%).
What made Tesla's profits shine, growing for the seventh quarter in a row, are not so much car deliveries, but the sales of environmental certificates to competitors (518 million, +46%) and Bitcoin trading, which led 100 million in capital gains. Elon Musk (299 million dollars his salary) explained in the conference that bitcoin trading was not aimed at generating profits, but at showing that it is a liquid and easily moveable asset.
Bitcoin itself raises its head again (+10%, to 53.851 dollars) after JP Morgan announced the opening of a fund based on cryptocurrencies for the most wealthy customers.
Calm on the bond market, awaiting the auction of seven-year bonds (62 billion). The 1,5755-year T-bond trades at XNUMX%.
The dollar's decline continues, to a seven-week low against the yen. The Bank of Japan summit concludes tonight: no news is expected.
RAW MATERIALS RISE. MORE OIL CONSUMPTION
WTI oil was up 0,2% to $62,3 a barrel; Brent at 65,84 dollars, +0,3%. The technical and scientific body of OPEC+ has revised upwards the forecasts on the consumption of crude oil in the world: +6 million barrels per day compared to the previous indication. Most of the reserves accumulated in the central part of 2020, in the moment of lowest consumption, will be disposed of by the end of June.
The rush of raw materials continues: natural gas, copper, nickel and iron ore are on the rise; rallies, with increases of 3% or more, coffee, wheat, corn, soybeans and sugar
MOODY'S BLESSES DRAGON RECOVERY
The spread between Italy and Germany rises above 105 points just when Mario Draghi confirms the control room of the Recovery Plan at Palazzo Chigi. But precisely the role of the premier plays the main guarantee for the markets for the use of capital necessary for the relaunch of the country. This is the opinion of Kaspar Hense, senior portfolio manager of BlueBay Asset Management, who predicts that the pressure on government bonds will slow down after the first progress on the Recovery. Of course, the level of state debt risks exceeding levels not seen for a century, but this data shouldn't scare: "Debt can be a sign of confidence, rather than fragility", underlined Hense.
The opinion of Moody's is also positive, which also warns that this year the accounts will close with a deficit of 12% and a debt of up to 160%: "These measures - admits the agency - while not without risks for public health, will support short-term economic growth. And the funds will be destined to be accompanied by structural economic reforms to improve the country's growth potential".
Within the EU, the sharp increase in purchases under the Pepp program should be noted: 26,5 billion euros against 17 in the previous week.
MILAN + 052%, COMMODITIES PUSH LONDON
In Piazza Affari, the Ftse Mib index appreciates by 0,52%, to 24.513 points. In this context, Frankfurt rose by 0,18%: the Ifo index stood at 96,8 points from 96,6 in March, resulting worse than estimates. Berlin, on the other hand, revised its GDP forecast for 3,5 upwards to 3% from 2021%.
Paris +0,28%. The banks stand out: Socgen +4%, Credit Agricole +2,1% after the conquest of Creval.
Madrid +0,96%; London +0,35%. Bhp Billiton rises (+1,6%) driven by the increase in copper.
THE TREASURY LAUNCHES OFFER IN DOLLARS TODAY, SPREAD AT 105
Weak BTPs, just above the closing lows. During the session, the spread went up to 107 points and then closed at 105. The 0,799-year yield is 0,83%: during the day it had risen to XNUMX%, the highest since February.
In addition to the end-of-month auctions of BOTs (Wednesday) and 5- and 10-year BTPs plus Ccteu (8,5 billion in all, Thursday), the market is already taking into account the next offer of one or more dollar issues that will be announced Today. For the first issue in US currency in 2021, divided into a three-year and a thirty-year tranche, the yield indications are respectively in the area of 60 and 200 basis points with respect to the swap curve.
SUPERSTAR BANKS, BARCLAYS PROMOTES INTESA AND BPM
The banks were the main protagonists of the session. Barclays has dedicated a long report to the sector, in view of the quarterly, raising the target to almost all institutions. Reward Intesa (target at 2,80 from 2,40), which rises by 2,32%, and Banca Bpm (+2,04%).
The British bank also recommends overweighting the Bper (target price revised from 1,90 to 2 euros) and Mediobanca (target price revised from 9,80 to 11,20 euros). Equalweight rating on Credem (target price revised from 4,70 to 5,10 euro) and Unicredit (target price revised from 8,60 to 9 euro). Finally, the institute recommends underweighting the MPS portfolio (target price revised from 1,10 to 1 euro).
Meanwhile, the success of Credit Agricole's takeover bid on Creval (-0,89%) restarts speculation about an imminent aggregation season in the sector.
TENARIS AT THE TOP (+3,45%), LEONARDO LOOKING BACK (-2,13%)
The Oscar of the day went to Tenaris (+3,45%), ahead of Amplifon (+2,26%).
Negative performance instead for Leonardo (-2,13%), which announced that it had entered into an agreement with KKR for the purchase of a 25,1% stake in Hensoldt (Hag) for a cash consideration of approximately 606 million EUR. For analysts it is a strategic but very expensive operation. Sales also widespread on Prysmian (-3,17%) and Enel (-1,09%). Weak Campari (-0,68%).
AVERAGE SET +0,6%. FININVEST ABOLICISHES THE INCREASED TONE
First signs of peace at Mediaset (+0,60%). Mediaset's board of directors resolved to convene the shareholders' meeting for 27 May, proposing the abrogation of the increased vote. The decision was unanimously taken "in the interest of the company, in order to avoid further disputes and hopefully re-establish a constructive dialogue with all shareholders", i.e. Vivendi, which had challenged the resolution of the 2019 shareholders' meeting. closed with revenues down (-2020%, to 10 billion, of which 2,63 in Italy), as well as profits (-1,8% to 26,7 million) but with cash flows growing at 139,3 million. In the first three months of 312, the television group recorded an acceleration in advertising revenues in Italy (+2021%) which bodes well for the April-June quarter,
NEW ORDERS FOR MAIRE. EQUITA PROMOTES TIP
Keep collecting orders around the Maire Tecnimont world (+3,86%), this time in India for the construction of a new paraxylene (PX) plant. Since the beginning of the year, the group has already forfeited new orders for about 75% of expectations for the full year.
Positive Tip (+0,76%): Equita sim raised its target price today from 9 to 9,3 euros.
