New surprise drop in manufacturing activity in Europe, belying the optimism about the recovery. The IHS Markit Flash Composite Index, considered a faithful gauge of economic health, fell to 51,3 in April from 51,6 in March's 51,6, throwing economists who had expected a rise to 51,8 by surprise.
In Milan, the Ftse Mib index showed a drop of 13% around 0,3 pm, again below 22 points, ahead of Madrid -0,40 and Paris -0,3%. Curiously Frankfurt is an exception in a tie, though the decline in industry continues for the fourth month in a row partly offset by services at 55,6, the highest figure since September 2018. The disappointment with the economic situation is also transmitted to exchange rates: the euro weakens to 1,127 against the dollar (-0,2%).
The spread stands at 256 basis points from 254 at the start. The ten-year Italian reference rate is worth 2,59% from 2,62% this morning. Oil also slows down Brent at 71,3 dollars a barrel, -0,5%.
Saipem slowed down, from +2,2% to +0,4%. The company has released its first quarter results. Adjusted Ebitda, aligned with accounting standards, stands at 274 million euros, around 4% better than expectations. Adjusted operating profit at $126 million, $20 million more than expected. At the end of March, the order book was 12,98 billion, the consensus expected 12,2. The company confirms the achievement of the 2019 targets.
Eni +0,1%. Nigeria has issued arrest warrants for two former ministers over the sale of the Opl-245 offshore oil field by Malabu Oil and Gas company in 2011, the Commission on Economic and Financial Crimes said on Twitter, adding that the orders arrests include Eni executive Roberto Casula and others. Goes down Enel -0,3%, after the purchase of two wind farms in Great Britain. Terna -0,15%.
Slows Poste Italiane -0,5% to 9,44 euro after yesterday's rally (+5,7%) driven by the judgment of Mediobanca Securities, which raised the target price to 11,3 euro, following a valuation with "multiples more appropriate” for a company exposed to promising industries such as B2C parcel delivery and paytech and not considering new businesses, the report said. Fineco Bank -3,5% after the news of the reduction of the stake held by BlackRock.
The credit sector is weak: JP Morgan has cut the target price of four banks: Ubi -1,3% Intesa Sanpaolo -0,4% Bpm bank -0,6%. Still negative Juventus -3,38% to 1,343 euros.
Fiat Chrysler -0,22%. BFM, the French all news TV, claims that the competition between Peugeot and Renault to ally with Fiat is increasing and that discussions between Peugeot and FCA are intensifying on financial and operational topics.
Mediaset +3,64% at mid-session. Fedele Confalonieri, during his speech at theshareholders' meeting he said. “What was considered a taboo yesterday, i.e. the creation of a pan-European broadcaster, is today a project being studied by the top management of the main European broadcasters. On the sidelines of the Mondadori meeting, Marina Berlusconi confirmed that Fininvest is absolutely in favor of finding an international alliance for Mediaset.
Gucci's exploit did not impress the luxury price lists: it retreats to Paris Kering -3,16%, in Milan Ferragamo -1%. Moncler -0,2%.
Worth noting: Ovs -2%, 2018 data was published last night. Retelit +0,8%, decided to proceed with the assessment of the project to split into two companies: one dedicated to the management of the fiber infrastructure and one dedicated to the branch of value-added services for customers.
