After a high-voltage day, Angela Merkel managed to find late in the evening an agreement with the Bavarian leader Horst Seehofer, avoiding the risk of a government crisis. Transit centers will be set up on the borders between Austria and Germany to welcome migrants already registered in other EU countries awaiting subsequent expulsion.
The euro was stable this morning at 1,164 against the dollar.
The markets can focus on another hotbed of crisis: on 6 July, in fact, US duties will kick in for 34 billion on imports from China. Donald Trump's pressure begins to produce the first significant effects on the Celestial Empire and on the rest of Asia.
This morning Hong Kong (-3,3%) slipped to a ten-month low, the Shanghai index fell to a low of 28.
YUAN AT 11-MONTH LOW, HONG KONG SUFFERS
The new fall of the yuan to 6,70 against the dollar is frightening, to levels not seen for 11 months. China's central bank is watching for the moment, even if it becomes increasingly likely to intervene, should the markets spiral to the downside. In the past, the monetary authorities in Beijing have always been interventionist in such cases.
The Japanese Stock Exchange falls: Nikkei index -0,7%. The equity markets of South Korea and India also fell slightly. Only Sydney was positive (+0,5%) pending the decisions of the central bank: a rate adjustment is unlikely.
THE TECH SUPPORTS WALL STREET TODAY THROUGH SERVICES
There is a holiday atmosphere on Wall Street, where today's session will end at 13 pm (19 pm Italian time) in anticipation of the 4th of July party. Trading volume fell to $6,2 billion yesterday (against an average of 7,3 in the past week). After a negative start, the markets reared their head thanks to the rally in technology.
The Dow Jones index closed with a rise of 0,15%, S&P 500 +0,31%. The Nasdaq gained 0,76%.
Tesla is down (-2,3%). Elon Musk has achieved the goal of delivery of 5 Model 3 cars, but the markets doubt that the result is sustainable over time. In the meantime, the chief engineer has resigned.
CRUDE, SAUDI PRODUCTION AT HIGHEST FOR 5 YEARS
Brent oil, down sharply yesterday, this morning rebounded to 77,9 dollars a barrel (+0,7%). The American WTI trades at 73,94 dollars. The data released yesterday in the late afternoon show that many OPEC countries are currently unable to produce when it would be their responsibility, starting with Libya, which has suspended production. Saudi Arabia thus had to greatly increase its production in June, as it had never happened in five years, just to keep overall OPEC production roughly at the levels of the previous month.
Yesterday in Piazza Affari Eni -0,7%, Saipem -1%.
AUTO DUTIES AND WTO, TWO PLUG FOR EUROPE
Even in Europe, the long-distance dispute with Donald Trump on trade held the ground. The US President stated that on trade issues "the EU is as unfair as China, only slightly less", after Brussels announced that if the occupant of the White House imposes tariffs on car imports from Europe, the Union will respond with tariffs on $294 billion of American goods. In the afternoon, a statement by Wilbur Ross, the US secretary of commerce, poured water on the fire: it is "too early to say whether the tariffs on cars" proposed by President Donald Trump "will be approved and will enter into force" and "it is very premature” any talk of a possible US exit from the World Trade Organization.
MILAN -0,92%. THE SUPER ALLIANCE IS BORN IN EUROPE
Milan closed down 0,92% at 21.427 points after recovering from an opening in the deep red (over 2%) after trading for 2,09 billion euros, down slightly from last week.
Similar trend in the rest of the Old Continent: Paris -0,88%, London -1,18%. The two markets were the stage for the agreement between Carrefour (-1,11%) and Tesco (-0,23%). The two leaders of large-scale distribution have signed an alliance on the purchasing front that promises to ignite a price battle in supermarkets across Europe.
Frankfurt (-0,55%) limited the damage. Worse Madrid (-0,7%) and Zurich, down by one percentage point.
IMPROVES EMPLOYMENT. THE DIGNITY DECREE APPROVED
The growth of manufacturing activity in the Eurozone is still holding back. The final PMI index edited by IHS Markit fell to 54,9 in June from 55,5 in May, just below the flash estimate of 55,0, the figure remains solidly above the 50 threshold that separates contraction from growth.
New signs of improvement arriving from the Italian labor market in May: permanent and temporary employed persons recorded an increase in parallel with a drop in inactive numbers which did not however prevent a drop in the unemployment rate below 11%, at the lowest since August 2012. Employed persons grew by 114.000 to a new record of 23,382 million.
In June, the borrowing requirement of the state sector fell to 3,2 billion from 8,366 billion last year, when 4,785 billion was disbursed for the Veneto banks. In the first half of the current year, red stood at 41,2 billion, down by 9,2 billion year on year.
The council of ministers approved last night the Dignity Decree. The crux of financial coverage has conditioned the provision that prohibits advertising on gambling and limits relocations. Among the main measures there is above all a package of articles to give a first blow to the Jobs Act. During the pre-council meeting some points were added to the text of the decree, such as the reduction from 36 to 24 months of fixed-term contracts with causal (without, the maximum duration is reduced to one year) or the 50% increase in compensation for dismissals without just cause.
Today in Parliament, Economy Minister Giovanni Tria will illustrate the strategy for public finance.
THE SPREAD NARROWS TO 233. BTP AT 2,78%
Positive closing for the BTPs which accelerated towards the end of the session.
After a peak in the morning at 250 basis points, the Btp/Bund spread narrowed in the final session up to 233 points, to new lows since Friday 22 June. The rate on the ten-year BTP ended the session more than 10 cents below the maximum of 2,78%.
AUTO, SALES ON THE HOLD: FCA GROUP -19,2%
Two-speed session for the auto sector: start in deep red, resumed after the soothing statements of Wilbur Ross.
The data on the Italian four-wheeler market has been released with stock exchanges closed. Car registrations in Italy in June amounted to 174.702 vehicles, down by 7,25%, compared to the same period of 2017. The decline of the Fiat Chrysler group was heavier, registering a drop of 19,2%: the market share stood at 24,95% from 27,77% in May. The Fiat brand recorded a decline of 30,65%, Alfa Romeo of 22,73%. New leap forward instead of Jeep (+91,7% for 7.713 vehicles).
In Piazza Affari, Fiat Chrysler closed essentially flat at +0,02%. Brembo-2%. Cnh Industrial -1,7%. Weak Ferrari (-1,29%).
THUD OF RECORDATI: SHARE SALE CUM DIVIDEND
The market was characterized by the decline of some stocks in the main basket.
Worst of all was Recordati (-12,45%) on the wave of the sale of 51,8% to CVC Capital Partners through the Fimei family holding company and subsequent launch of a takeover bid at 28 euro per share against a listing above 34 euros on Friday. . Despite the collapse, the stock is still well above the offer price, stopping today at 29,82 euros. In the evening, Recordati's majority shareholder, Fimei, specified in a note that the agreement signed with CVC for the sale of his stake implies a price of 28 euros per share "cum dividend".
DI MAIO HOLDS BACK MEDIASET: BETTER NETFLIX
Mediaset closed down 3,65% after the publication of a report by Morgan Stanley on European TV networks in which the broker expresses a negative view on the shift of advertising investments to non-TV platforms. This is echoed by the words of the Minister of Economic Development Luigi Di Maio according to which traditional TVs have numbered days.
Prysmian closed in letter (-1,75%) on the first day of the capital increase. The rights left 4,09% on the ground.
Marked decreases also for Stm (-2,04%) and Tim (-1,44%).
FINCANTIERI, NAVAL LEAVES AWAY. SUPER LILY IN CHINA
Fincantieri suffers (-7,45%): the defeat in a tender in Australia weighs heavily but even more the stalemate in the negotiations between Italy and France for an alliance in the shipbuilding industry.
Giglio gained 10,7%: the stock was suspended due to excessive increases. The top management of the company have declared themselves optimistic about entering into new partnerships with luxury brands. New deals could be announced soon. The recent contract signed with the We Chat platform in China, one of the first in the sector, has strengthened the group's presence on that market.
ENERGICA MOTOR AND CASTA DIVA RUN AT AIM
The race of Energica Motor Company continues (+7%), manufacturer of high-performance electric motorcycles, has concluded a commercial agreement with the German sales point Gooseneck GbR, located in the city of Ulm, an area full of opportunities for the Modena-based company. Furthermore, there are 7.400 charging points in Germany, which makes the country particularly attractive for all companies that manufacture electric vehicles.
Boom in Casta Diva's Aim (+16,05%) on the wave of the success of Friday's event in New York "The World Trade Blockchain Summer Edition", in which 9 companies presented their ICO (Initial Coin Offering) in front of an audience of over 100 investors including business angels, institutional investors, family offices, fund managers, Hnwi (High Net Worth Individuals) and crypto investors.
