Wall Street goes on vacation, the dollar doesn't. The US currency is advancing, supported by expectations of a more robust tapering, while the euro languishes under the pressure of the Covid-19. The cross was hovering around 1,12 after the Nov. 3 Federal Reserve meeting minutes revealed that even doves admit high inflation will take longer than expected to subside. The minutes show that some members of the central bank were pushing for a faster tapering. The Asian markets, today deprived of Wall Street's reference, moved this morning in random order.
DIMON JOKS ABOUT BEIJING, THEN APOLOGIZES
Jamie Dimon's curious gaffe made headlines: the banker of JP Morgan, in celebrating the bank's centenary, said: "We will live longer than the Chinese Communist Party", only to apologize a couple of hours later. Xi JingPing doesn't like jokes.
Tokyo's Nikkei is up 0,6% this morning. The CSI 300 of the Shanghai and Shenzen indexes are down by 0,3%. Yesterday evening, Premier Li Keqiang urged district and provincial governments to use special financial resources to fuel an economic recovery that is struggling or showing signs of slowing down.
BOUNCE TECH IN HONG KONG. MINISTRATE IN KOREA
Hong Kong's Hang Seng +0,2%. Hang Seng Tech rebounds after six consecutive bearish sessions. Inside, Alibaba +2%, Baidu +3,3%, Bilibili +4%. Property developer Kaisa Group returns to trade up 18% as the company announced a debt restructuring plan.
Seoul's Kospi loses 0,3%. The won is weakening against the dollar, despite the fact that the central bank has increased the reference interest rates by 25 basis points and has raised its forecasts for 2022 on consumer prices.
FED MINUTES ANTICIPATE TAPERING
Wall Street's stock markets moved little, in anticipation of the shopping party: Dow Jones -0,02%, S&P +0,23%, Nasdaq +0,44%. The minutes of the central bank suggest a further cut in purchases on the market.
Cold shower for Nordstroem (-24%) and Gap (-25%). The two clothing giants pay for the delay in supplies for Christmas. The artifacts of Vietnam are missing after the closures for the Covid. PC manufacturers, on the other hand, run: Dell +110%.
OIL LITTLE MOVED WAITING FOR OPEC+
Oil was little moved in the aftermath of the release of data on crude oil and gasoline inventories by the Energy Information Administration: last week crude reserves rose by a million barrels. The Wall Street Journal reports that Russia and Saudi Arabia will ask other OPEC+ members to suspend or slow down the program to increase production.
GERMANY SHAKES, BUT THE SCHOLZ GOVERNMENT IS BORN
Germany, year zero. The record increase in infections (24 positives and 66.884 deaths in the last 335 hours) rings the emergency bell for the German economy, while in some regions the health facilities are already at their limit. But the red alert, confirmed by the slowdown in the Ifo index, also had the effect of giving a jolt to the negotiations for the formation of the new government, the first in sixteen years that will not revolve around the figure of Angela Merkel.
Olaf Scholz managed to get the parties to agree with which he had started the consultations. The new chancellor, according to rumors, has also guaranteed the choice of the new president of the Bundesbank, thus balancing the power of the new finance minister, the strict liberal Christian Lindner. But Isabel Schnabel, a German member of the ECB, let it be known that, in her opinion, "we live with relatively high inflation".
PANETTA: CUTTING PURCHASES IS EQUAL TO A SPREAD
The declarations of Fabio Panetta, an Italian member of the ECB, fit into this picture, in response to the suggestion of the hawks, not least the outgoing Jens Weidmann, against further purchases of securities by the Central Bank. “An inappropriate and drastic reduction in bond purchases – he said – would be equivalent to adopting a restrictive monetary policy”. And again: “We must not exaggerate the risk that supply shocks turn into a demand shock, and threaten the recovery by applying restrictive monetary measures or passively tolerating an undesirable tightening of financial conditions”.
These skirmishes, combined with the uptrend in T-bonds, kept Italian treasuries under pressure, although the gap with the bund narrowed in the finale.
YIELDS RISE, SPREADS UP TO 132
The spread stops at 130 from 127 on the eve, after widening up to 132,5 points. The yield on the Italian 1-year bond rose by more than 1,07% (to 0,25%) against the Bund at -XNUMX%.
The euro broke its support against the dollar at 1,12 after positive US data strengthened interest rate hike expectations, supporting the greenback.
PLAZA BUSINESS STARTS AGAIN, THE EU APPROVES THE MANEUVER
Piazza Affari (+0,68%) climbs above 27 thousand (to 27.184 points). The European Commission has given the green light to Italy's budget law, while recalling that the government and parliament must set themselves the goal of reducing the increase in current public spending. “Today no budget law has been rejected”, observed the commissioner for the Economy, Paolo Gentiloni.
THE LIRA COLLAPSES, WHAT A BUSINESS TURKEY FOR BBVA
Frankfurt closes in the red (-0,35%). Madrid loses 0,39%; flat Paris and Amsterdam. The Spanish bank BBVA has reiterated its willingness to buy control of the Turkish Garanti Bank. Indeed, the institute lets it be known that the offer (2,25 billion euros) was formulated in Turkish lira, which, in the meantime, has lost 23% against the common European currency.
RICHARD OUT OF ORANGE
Earthquake in French telecommunications. Stephane Richard, pdg of Orange, has resigned from the leadership of the former France Telecom a few hours after the one-year suspended sentence remedied for complicity in the Tapie affair, the billionaire reimbursement remedied at the time by the former president of the Olympic Marseille. London is more optimistic, +0,29%.
TELECOM, THE MARKET BELIEVES IN THE RELAUNCH OF KKR
A poker of stocks allowed Piazza Affari to close in positive territory; Telecom, Enel, Unicredit and Banca Mediolanum, now orphaned by the founding father, Ennio Doris.
On the eve of tomorrow's board showdown, Telecom Italia is back on track (+15,63%, to 0,50 euro), a threshold exceeded several times during the day, confirming that the market believes that KKR can increase its offer (hypothesis denied for now) with respect to the "expression of interest" and thus convince Vivendi. The Italian government will closely follow the developments of the expression of interest of the Kke fund and, when the operation is formalised, all the profiles of public interest will be analysed. This is what the Minister for Economic Development, Giancarlo Giorgetti said in the afternoon. According to the deputy prime minister, it is premature to speak of the exercise of golden power by the state: "First we will have to wait for developments to know the concrete content of the operation". Among the stocks of the telecommunications sector, Tim is in third place in Europe with a gain of +32%, overtaken by Nokia (+62%) and Freenet (+35%).
ENEL LIKES STARACE'S GREEN BET
Enel shines (+2%). Francesco Starace, in presenting the 2022/24 strategic plan, has announced that it will directly invest 170 billion euros up to 2030 and will mobilize even more with the aim of anticipating plans to become carbon free by 2040. The group, which expects to mobilize a total expenditure of 210 billion euros by 2030, it said it would spend 70 billion euros on renewable energy to boost its capacity to 129 gigawatts. The electric giant could also decide to spin off and even list the network of car charging stations.
MEDIOLANUM +2,91%, A TRIBUTE TO ENNIIO DORIS
Strong increase also for Banca Mediolanum (+2,91%) on the day of mourning for the death of Ennio Doris. In reality, the handover from the founder to his son Massimo took place some time ago, but what drives the stock is the remote possibility of M&A operations.
S&P RELAUNCHES UNICREDIT
Finally, Unicredit rose (+2,97%) on the wave of the promotion of the rating by the agency S&P Global. The outlook also changes from stable to positive.
The industrialists, on the other hand, lose ground: the black jersey of the day goes to Buzzi Unicem (-1,68%), followed by Stellantis (-1,19%) and Diasorin (-1,03%).
FINCANTIERI, CAPITAL INCREASE SCARY
The decline of Fincantieri was heavy (-4,63%). The company will face a robust capital increase if it wants to acquire control of Oto Melara and Wass from Leonardo.
SOMEC WILL MAKE THE FACADE OF THE BOSTON HOSPITALS
Of note is Somec (+3,47%), which acquired a new order for the facades of the Massachusetts General Hospital, for a total value of approximately 60 million euro.
