With four of aces at the top of the list Business Square closed a volatile session up 0,63% (to 27.109 basis points), contrasted in Europe, weak at the start on Wall Street (where the Nasdaq is recovering) and marked by the super dollar, with the euro below 1,12 .
Telecom back on the shields (+15,63%) thanks to the rumors (denied) that Kkr could increase its offer, in an attempt to convince the reluctant shareholder Vivendi. The share price rose to 0,4972, ever closer to the potential takeover bid of the US fund at 0,505 euro.
It is appreciated Banca Mediolanum +2,91% on the day of death of the founder Ennio Doris, who had already passed the deliveries to his son. To impress a certain appeal is the rekindling of speculation on the future structure of the group.
The recovery of Unicredit continues +2,97%, promoted together with Intesa (+0,02%) by the S&P Global agency, which confirmed the rating on the capital solidity of the two institutions and improved the outlook, bringing it to "positive" from "stable".
Shines Enel, +2%, on the day of presentation of the 2022-2024 business plan. The electric giant could also decide to spin off and even list the network of car charging stations while remaining the majority shareholder in the new company.
Sales penalize Buzzi -1,68% stellantis -1,19% Diasorin -1,03% Prysmian -0,79%. Fincantieri is heavy outside the main basket (-4,63%) which, according to rumors, should resort to a significant capital increase in the event of the purchase of Oto Melara and Wass from Leonardo (+1,35%).
The surge in the finale is reduced spreads, which stops at 128 basis points (+1,56%), with rates growing for both the Italian and German ten-year bonds, +1,02% and -0,25% respectively. Meanwhile, 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” observes the commissioner for the economy Paolo Gentiloni, who specifies: “we are not asking for specific corrections, we have only raised attention to the problem, to something that the government intends to tackle. How and when it will be an Italian decision”.
Temperatures are lower in other European markets, but higher than the lows of the day despite the resumption of infections from Covid and the new restrictions that raise many question marks on the economic climate in the coming months.
Frankfurt it dropped 0,35%, on the day of the birth of the first "traffic light" government made up of Social Democrats, Greens and Liberals. However, the mood in the country is not the best, given that Germany travels around 67 thousand infections a day. In fact, the Ifo index on business confidence dropped to 96,5 points in November from 97,7 points in October.
Madrid down 0,39%, they are flat Paris e Amsterdam. More optimistic London + 0,29%.
New York, after a start in fractional decline, sees the recovery of the Nasdaq, awaiting the minutes of the Fed and on the eve of the Thanksgiving holiday.
Macroeconomic data for the day provide a relatively encouraging picture. Weekly new jobless claims fell by 71.000 to 199.000, the best number since November 1969. Third quarter GDP (in second reading) rose 2,1%, after 2% in preliminary estimate, but against expectations by +2,2%. Durable goods orders fell by 0,5% in October, the second consecutive drop, against expectations for +0,3%. Inflation in October rose to its highest level since December 1990. The PCE data (personal consumption expenditures price index), the preferred measure of the Federal Reserve, reveals that inflation grew by 0,6% over September (+0,4% expected) and compared to a year earlier it increased by 5%, the highest since December 1990, after the +4,4% of the previous month.
The dollar takes advantage of this, which appreciates against a panel of currencies, also helped by the declarations of Mary Daly, president of the San Francisco Fed, according to which the pace of tapering could accelerate, while 1-2 rate increases are expected next year .
THEeuro it breaks the support against the US currency at 1,12. The cross is currently 1,197.
The race for yields on T-Bonds stops with the 0,5-year bond moving down by 1,65% to around +XNUMX%.
The idea that central banks must intervene to deal with galloping inflation is also worrying in Europe.
However, the move could be counterproductive, and today Fabio Panetta, member of the executive committee of the ECB, clearly explains why. The European Central Bank - he argues - must continue to keep public debt costs under control given the protracted pandemic and the lack of signs that inflation is spiraling out of control. “An inappropriate and drastic reduction in bond purchases would be tantamount to adopting a restrictive monetary policy”. According to Panetta the current spike in inflation, which saw prices rise by 4,1% last month, is due to "purely temporary factors" and "global supply-side shocks" that are hurting the economy instead of leading to overheating.
"We must not exaggerate the risk of supply shocks turning into a demand shock, and threaten the recovery by applying tight monetary measures or passively tolerating an undesirable tightening of financial conditions." The ECB is expected to find an agreement to slow the €1.850 trillion pandemic emergency purchase program (PEPP) starting next month, but the question is how many bonds the central bank will buy after the end of the PEPP in March.
Among raw materials, the weakgold at $1786,32 an ounce, while the Petroleum, between ups and downs, is currently making slight progress. Brent, +0,58%, 82,79 dollars a barrel; Wti +0,47%, $78,87.
