War and plague, as we know, go hand in hand. And so it may not come as a surprise if the news arriving from Kiev is combined with that relating to Covid-19, which is reappearing more aggressively than ever in China, hitting Shenzhen in particular, the capital of Dragon technology. But the markets' attention for China today is focused on the role that Beijing could take on in the dramatic Ukrainian game, either as a pleasure or as an ally of Moscow. Meanwhile, a high-level meeting between China and the US will be held in Rome, the first since the outbreak of war in Ukraine. Jake Sullivan, US security adviser, will meet with Yang Jiechi, head of diplomacy of the Chinese Communist Party.
Shenzhen closed, the Chinese hi-tech price list down by 7%
A small sign of optimism that favors the rise of futures of theEurostoxx: +0,5% before opening.
Quite a different climate in China. The Hang Seng index of Hong Kong loses almost 4% and Hang Seng Tech more than 7%. The big, but also the medium and small names of Chinese high tech fell: Xpeng -17%, Baidu -13%, JD.com -12%, Meituan -11%. The CSI 300 index of the lists of Shanghai and Shenzhen is down 2%.
Just the megalopolis of Shenzen attached to Hong Kong, where the headquarters and operational headquarters of China's high-tech industry are located, has been put into total lockdown. Only businesses essential to daily life, such as markets, pharmacies and medical institutions, can continue to operate normally. A brake is also provided for travel: it is possible to leave the city only if it is necessary.
Impact of Shenzhen lockdown for just one week may be worth 0,1% of China's GDP: Foxconn, the world's largest contract electronics maker, Apple's factory, today reported suspending production at Longhua plants and Guanlan in Shenzhen until further notice by the local government.
The yen falls, superdollar waiting for the Fed
The rest of Asia is better: Kospi of Seoul -0,5%. BSE Sensex of Mumbai +0,5%. The decline in the yen (-0,5%) and the Australian dollar (-0,7%) lend a hand to Tokyo's Nikkei (+1%) and Sydney's S&P ASX200 (+1,2%).
Pending the Federal Reserve's decisions, the dollar index is pushing to its highest level since the outbreak of the pandemic. Euro little moved at 1,091.
Treasury Note yield at 2,05%, +5 basis points. Maximum since May 2019.
The most positive note concerns oil, which fell by 2,5%, confirming that there are small but significant signs of easing of tension.
Gold is also giving in: -0,7%, at 1.975 dollars.
Rates: the first increase after 5 years is on the way
With eyes on war in Ukraine, markets are focused on central bank appointments. The Federal Reserve is preparing to raise rates on Wednesday for the first time since 2018. Only a quarter of a point, but the Central Bank will have to anticipate the timing and methods of the next increases, in the face of the rise in inflation, which has reached 7,9 .XNUMX%.
Even the Bank of England is about to make a new upward adjustment in rates, the third since the outbreak of Covid -19.
In the afternoon there will be a meeting of the Eurogroup called to agree on a declaration on the budgetary principles for 2022 and 2023 in the light of the new international scenario.
Tim replies to Kkr, waiting for new proposals
At the center of attention in Piazza Affari are two highly anticipated financial appointments.
After the Sunday board, Tim will present itself to the judgment of the market. The board of the company had to decide whether or not to open up to Kkr's proposal. At the end of a long meeting, with the support of the opinion of four advisors, of which two chosen by the independent committee and two by the company (Mediobanca and Vitale) who agree in reiterating that dividing the services from the Telecom Italia network can be worth more than euro, Tim's board of directors unanimously decided to decline the current advances of Kkr, but declaring itself available to examine future ameliorative and binding offers "to evaluate the attractiveness and concreteness of the potential offer from a financial and industrial point of view".
Generali, the Mediobanca team is on the field today
The board of directors of Generali will be held in the afternoon. At the end of the meeting, the outgoing directors will distribute the list of their candidates. And shortly, probably on Tuesday, the challenger Francesco Gaetano Caltagirone will also announce his list with a dozen names, including Claudio Costamagna as president, a coach as possible, Caltagirone himself and some foreigners.
The outgoing board, which would like Philippe Donnet to be confirmed as CEO, has already co-opted Andrea Sironi to make him the new president, in addition to Alessia Falsarone and Luisa Torchia. The directors Clemente Rebecchini, Antonella Mei-Pochtler, Lorenzo Pellicioli and Diva Moriani would then be confirmed. And two other proposals, hitherto unpublished, would be the professor of the Polytechnic Marco Giorgino (who sits on the MPS board of directors) and Carlo Enrico, former CEO of Banco Posta and now in Mastercard.
Generali's board will also provide fourth quarter data. The average estimates of the operators foresee a net profit of 2021 billion for the whole of 2,8, from 1,7 billion in 2020, when there were strong devaluations, and a coupon of 1,07 euros per share, against 1,47 euros of the year before, which included €0,46 not distributed in 2019.
Rai Way: a step towards Ei Towers during the week
The agenda of Piazza Affari also includes the conference calls of Acea, Saras and Avio. There will also be the delisting of Energica Motor after the transfer of control to the Americans of ideanomics.
The Board of Directors of Rai Way on the 17th will be held on Wednesday, a key appointment for any future wedding with Ei Towers.
The Boards of Europe's big electricity companies are scheduled
Between Wednesday and Thursday the councils of the three big electricity companies in Europe will be held: Enel, E.on and Rwe, an opportunity to take stock of the emergency and the strategies to overcome energy dependence.
Spotlight also on the Volkswagen shareholders' meeting, grappling with the damage following the disruption of the supply chain from the subsidiaries in Ukraine.
The accounts of inflation and industry
On the macro front, several data are expected this week:
- tomorrow: industrial production in China and the Eurozone; unemployment rate in the UK, inflation in France and the Zew index in Germany;
- Wednesday: inflation in Italy (February) and industrial production in Japan (January);
- Thursday: Eurozone inflation and US industrial production in February;
Friday: inflation in Japan (February) and trade balance in Italy and the Eurozone (January).
