Banks in midstream, reforms at risk, economy slowing down. There is no shortage of problems for Italy spa. But the Treasury is preparing to celebrate a further decline in yields at today's 12-month BOT auction. Let him predict the trend of the ten-year BTP, which yesterday marked a new historic low at 1,11% updating downwards the record set in March 2015, when it closed at 1,13%. This is not an isolated case. Spanish 1-year Bonos fell below 0,37%, Irish 0,56%. The immediate cause is the Bank of England's decision to counter the post-Brexit recession with the relaunch of QE. A strong move but which, central bank adviser Ian McCafferty wrote yesterday, will probably have to be replicated. The result? The Queen's gilt slips to 30%, the 1,36-year bond to 1,12% and corporations (yesterday it was BP's turn) are hurrying to fill up on cheap money. On the first day of the QE, pension funds and British insurance companies yesterday offered the Central Bank bonds worth 1,17 billion pounds against the request for XNUMX billion: the price, although higher than market prices, was judged too low .
It is an unprecedented phenomenon, in the Japanese style, which hides many dangers. For now, however, the rain of money is one of the ingredients of August "the calmest in the last 20 years", as the Financial Times has ruled by comparing the data from 1996 onwards.
IN THE AFTER BAG WALT DISNEY BRAKES. BAD GAP
– Flat calm on the markets of the East. The Nikkei index rose in Tokyo by 0,2%, the Hang Seng in Hong Kong +0,4%. Instead, the Chinese lists were weak: Shanghai - 0,1%.
– The drop in the cost of money also involves China. The 2,7-year bond fell this morning below XNUMX%, an all-time low on the spur of the forecast of new cuts in Japan and Australia.
– Wall Street also stable but at record levels: the Nasdaq +0,24% has established a new all-time record. The S&P 500 index hit a new all-time intraday high at 2.187,66. Dow Jones +0,02%.
– On the corporate front, Gap crashed -6,7% after having released disappointing sales results. The best blue chip of the day was Walt Disney but the stock fell back (-1,75% after hours) after the accounts.
– Little moved oil: Brent fell to 44,84 dollars, Wti 42,77 dollars a barrel. Iran said it hit new record of 2,5 million bpd in oil exports, Iranian Vice President Eshaq Jahangiri said Iran managed to reclaim pre-sanctions market share .
– Eni closed down 0,1%, Saipem +1%. Good prospects for the Turkish Stream: Russian Energy Minister Alexander Novak during the meeting with Turkish President Recep Tayyip Erdogan said he wants to finish the first section of the gasfotto in the second half of 2019,
THE CAR EXALTS FRANKFURT. MILAN ONLY +0,3%
European stock markets are expected to open slightly lower this morning.
– Piazza Affari closed yesterday with a slight gain of +0,3% a session marked by modest trading which saw the other European Stock Exchanges post brilliant gains. The Paris Stock Exchange rose by 1,1%, Frankfurt +2,5% Madrid +1,5%.
– In Europe, the best performing sector is the automotive industry (Stoxx +2%), supported by good data on car sales in China. The German manufacturers benefited the most, in particular BMW rose by 3,4%, Volkswagen +2,7%.
– In Milan, Fiat Chrysler rose by 1,7%, rewarded by Jefferies analysts (target price at 7,50 euros). In the second row Ferrari +0,47%. Cnh Industrial shines +3,3%.
THE GENERALI-PIAZZETTA CUCCIA SNAPSHOT CONTINUES
Mediobanca makes a good profit +3,5%. Generali also rose by 1,1% driven by the opinion of Barclays (eqaulweight, target price from 11 to 11,1 euro). The attention on the two stocks was fueled by some newspaper articles that hypothesize a project by Vincent Bolloré to increase his stake in the Piazzetta Cuccia institute to favor a merger between Generali and Axa. But the summer hit seems destined to fade away.
Unicredit closed up 1%. JP Morgan raised the recommendation to Neutral from Underweight, bringing the target price to 2,30 euros from 2,1 euros. Understanding +0,4%.
Monte Paschi +1,2%, under braking in the afternoon.
Ubi -0,1%, Banco Popolare -1,8% and Pop.Milano -1,6% are down.
Among the financial stocks, the performance of Anima was also good +2,54%, which benefited from the buy that arrived this morning from Banca Imi (target price cut from 7,8 to 6,1 euro).
Urbano Cairo has started the purchase of the 1,3% stake in Cairo Communication necessary to go back to 50% plus one share after the completion of the Public Offer on RCS.
