Santa Claus won't be too generous with Amazon shareholders. Or at least not enough to satisfy the e-commerce giant's insatiable appetite. Forecasts for sales for the last quarter of 2018 stop at 72,5 billion dollars, with "only" growth of 20%, less than the 74 billion expected by analysts. This correction was enough to cause a drop of 7,7% in post-exchange trading on Wall Street despite the formidable accounts: profits tenfold in the last three months, 2,9 billion dollars.
Stock exchange also for Alphabet (-4,2% tonight) after skyrocketing revenues (+21% in the third quarter). The unitary drop in earnings on Google clicks is worrying.
The market's reaction suggests a mixed end to the week for the US markets, yesterday in a strong recovery (Nasdaq +3%) precisely while waiting for the accounts of the two Bigs. The Dow Jones +1,63% and the S&P 500 +1,88% also closed with a significant recovery, despite the umpteenth worsening of the trade balance (-76,5 billion dollars in September).
ASIA HOLDS DOWN, OIL REDUCTION TOO
This morning, however, the effects of the quarterly reports were felt in Asia:
- In Tokyo The Nikkei loses 1%, after a rising start, the week, at these prices, ends with a drop of more than 7%. Hong Kong's Hong Seng Index is down 1,7%. Shanghai -0,3%, Seoul -2%.
- The yuan has taken another step towards 7 against the dollar: the Chinese currency is traded at 6,96, one step away from the highs since the beginning of 2017.
- Brent oil was also down, trading on Asian markets this morning at 76,4 dollars a barrel, down 0,6%, from +1% yesterday. Bloomberg reports that Saudi Arabia is having second thoughts, it is no longer so convinced by the proclamations on the possible increase in production arrived during the week.
THE ECB LAUNCHES THE INVESTIGATION ON THE BANKS' BTPs
The euro is suffering, this morning at its lowest since the last two months at 1,136 against the dollar. Yesterday Mario Draghi admitted that the macroeconomic picture has become more fragile in this first part of autumn, even if it is not yet such as to make the ECB review its monetary policy assumptions: it is probable that any revisions will be communicated in December.
But the last thrill of the week for Piazza Affari will come from the verdict of Standard & Poor's on the maneuver that will arrive after the markets are closed. La Stampa reports this morning that Bank of Italy, at the invitation of the European Central Bank, has asked Italian banks to provide a periodic update of government bond positions. Monitoring concerns both government bonds held in the trading book, which impact the income statement, and those classified as held to maturity
Mario Draghi yesterday called for the resumption of dialogue between the EU Commission and the Italian government "under the banner of common sense": more moderate tones are the prerequisite for the decrease in the spread.
MILAN INTERRUPTS THE NEGATIVE STREAK
Worst stock market in Europe on Wednesday, the first to bounce yesterday. Piazza Affari yesterday interrupted a six-day downward streak coinciding with the ECB executive meeting which confirmed the end of Qe in December and the intention to keep rates at current levels until next summer. Frankfurt's monetary policy choices favored the drop of the euro to 1,1337, to its lowest level in the last two months.
Mario Draghi called for the resumption of dialogue between the EU Commission and the Italian government "under the banner of common sense": more moderate tones are the prerequisite for the decrease in the spread. The invitation from the ECB governor was accepted, at least in part, by the yellow-green government: an hour after Draghi's press conference, Deputy Prime Minister Luigi Di Maio said: "We are very attentive and vigilant about the situation of Italian banks and I must say that we have direct contact every day with the various managers".
SAVONA: DRAGONS MUST INTERVENE ON THE SPREAD
But Paolo Savona took care of relaunching the controversy: "I say clearly that if the spread rises and no one intervenes to control it, a typical task of central banks, the fall in securities puts the banks in difficulty". The institution led by Mario Draghi, he added, which should "indicate a solution to the problems... and therefore intervene... it is a duty that must not be postponed".
- After six down sessions, the Milan Stock Exchange closed sharply higher: +1,78% to 18.815, bouncing violently from the lows of the last six months reached at 18.411 at the start.
- The bold start of Wall Street and the truce on the spread (-10 basis points) favored the positive closure of European lists: Paris +1,6%, Madrid +1,35%, London +0,58%, Zurich - 0,18%
- Frankfurt's Dax is up 1,01%, the Ifo index stood at 102,8 points in October, down from 103,7 points in September, slightly below the consensus estimates of economists, who expected a result at 103,2 points.
The Italian paper closes in positive territory, while concern over the Italy-EU confrontation on the maneuver continues to remain in the background in a session in which there was no marked impact from Mario Draghi's words after the ECB meeting.
The yield differential between the Italian 310-year bond and the same German maturity ended the day at 322 basis points, from 3,50 points at Wednesday's close. The yield on ten-year Italian bonds also fell, to 3,61% from the XNUMX% of the reference.
THE END OF THE MONTH AUCTIONS START TODAY
The month-end auctions kick off today with the placement of the new November 2020 CTZ which on the closing gray market saw a yield of around 1,67%, up by almost a full point compared to the 0,715% of the placement at the end of September.
During the medium/long-term auction on Tuesday 30 October, the Treasury will make available to investors between 4 and 5,5 billion euros in two BTPs and a Ccteu.
Between 1,5 and 2 billion euros will be offered in the fifth tranche of the BTP on 2023 October 2,45, coupon 2% and 2,5-1 billion in the seventh tranche of the BTP on 2028 December 2,80, coupon XNUMX%.
Also offered between 500 million and 1 billion Ccteu September 15, 2025.
BANKS IN RECOVERY, MEDIOBANCA IN RALLY
The index of Italian banks rose by around 2,6% against an increase of around one percentage point in the European banking basket.
Mediobanca it advances 3,8% after that first quarter accounts which show a better-than-expected net profit: 245 million euros, down on a year earlier, which had recorded a capital gain of 89 million from the sale of a stake in Atlantia, but above expectations. The impact on the capital ratios of the BTPs in the portfolio is minimal.
In the rest of the banks Understanding salt by 2,8%, Bper e Unicredit over 2%.
PIRELLI LEADS THE AUTOMOTIVE CHARGE. WELL THE LUXURY
Well the automotive: Pirelli, the top stock, gained about 4,8% on Continental's run.
Brembo e fca achieved gains of more than 3%.
Among the cyclicals, today preferred on the defensive, good too Prysmian +3,9% and Campari+ 3,8%.
Luxury stocks rise: Moncler+2,3% after the good quarterly performance, the run resumes Ferragamo +3,1% after the weakness on the eve.
WEAK MEDIASET AND TIM. FLY ASTALDI
Among the few declines still weak stm -0,6% Mediaset -0,7% and Team -1,6%. Kepler Chevreux reduced the judgment on to hold A2A -0,56%.
Avanza Salini Impregilo +4,7% which was awarded two contracts in the United States for a total value of almost 400 million dollars.
The “prey” goes into orbit Astaldi + 20,9%.
