"When the time comes, we will make a big deal with China." And this will happen “much sooner than people expect”. Donald Trump did not spare himself to reassure the markets that "the disagreements between me and President Xi are just disagreements between friends", even if "the agreement must be advantageous for the US otherwise it would not make sense". In short, a great show that has had the merit of placating the anxieties of the markets for now.
CHINA ADVANCES, WAITING FOR STIMULUS
This morning Asian stock markets are up on Wall Street. The Csi 300 index in the Shanghai and Shenzhen lists gains 1,3% (but the balance for May -5,6% remains negative) ahead of Hong Kong (+0,7%). The Korean Kospi index (+0,5%) and Tokyo (+0,2%) were positive.
The Chinese markets are betting on the arrival of measures to support the economy under pressure in view of the new US tariffs which fall at a time of economic slowdown: in April, industrial production and consumption recorded lower growth rates than those of March, as well as falling short of expectations. Retail sales report the worst drop since 2003.
WALL STREET STARTS AGAIN. RAISE YOUR HEAD UBER
The Chinese Yuan is flat. The Korean won, which collapsed in the first part of May, is rebounding, but in a very modest way.
The US markets recovered yesterday after Black Monday: Dow Jones +0,82%, S&P +0,80% and Nasdaq +1,14%. Boeing recovers tone (+1,7%).
Uber comes to the rescue (+7,7%) after its disastrous debut. The increase took on further speed in the aftermath thanks to the opinion of the mystery of work: the service drivers cannot be considered employees.
WALT DISNEY BUYS HULU IN ANTI-NETFLIX FUNCTION
New chapter in the war for primacy in entertainment. Walt Disney +1,4% took over Hulu streaming from Comcast (+1,5%) as anti-Netflix (+1,1%).
Instead, Ralph Lauren (-3,7%) goes down after the accounts.
SUPER DONALD INSISTS: "THE FED MUST HELP US AGAINST CHINA"
Trump has returned to arguing with the Fed in the context of the dispute with China. The Asian rival "is pumping billions of liquidity" to counter the US action. If the Fed were to take action alongside the Washington government, he added the game would close immediately, with the victory of the United States.
HOLDS OIL DESPITE MISSILES
The much higher than estimated increase in US oil inventories offset the increasingly disturbing winds of war blowing on the Persian Gulf routes: Yemeni rebels claimed responsibility for drone attacks on two Saudi oil facilities last night. Brent is trading at $71,04 a barrel this morning, down slightly after yesterday's gains. Wti at $61,38. Trump has denied there is an intention to send 120.000 troops to the Middle East, to prepare for a conflict with Iran, as the New York Times had written a few hours earlier.
Yesterday in Piazza Affari Saipem +2,6%, Eni +1,1%.
MARKET PLACE ADVANCES, DESPITE THE FIRES
Trump's tweets are worth more than a rally by Matteo Salvini, capable with his declarations of raising the spread beyond 280 points but not of curbing the rebound of the Ftse Mib index, +1%, in line with the other markets of the Old Continent, which, in the wake of the US president's statements, canceled the losses of the beginning of the week. The drop in the Zew index did not weigh: the indicator that anticipates the sentiment of German entrepreneurs records a drop in confidence of 2,1 points, far below the expectations of economists. However, the index also signals the weakening of expectations on the prospects of the Italian economy, which are falling sharply (-24,3 from -16,8).
TODAY GERMAN GDP, FRANKFURT SUFFERS BAYER
Euro-dollar cross slightly moved at 1,121, close to the data on Germany's GDP, arriving this morning before the opening of the European markets. The consensus expects +0,4%.
The Milan Stock Exchange (+1,45%) closed the session at the highs of the day, at 20.892 points.
Paris also rose sharply (+1,5%). Frankfurt (+0,97%) absorbed the shock of Bayer (-2%) after an opening at -7%: a California judge ruled that the chemical giant will have to pay two billion dollars for the damages caused to a farming couple from the prolonged use of a carcinogenic herbicide produced by the subsidiary Monsanto.
Positive Madrid (+0,88%). Outside the Eurozone, London is advancing (+1,09%). Zurich +0,44%.
THE BTP/BUND CROSS SPREADS TO 284
Very eventful day for the Italian bond market. In the morning, the BTPs passed the test of the mid-month auction without major hitches. But the problems began in the afternoon, when the declarations of Deputy Prime Minister Matteo Salvini arrived in the operating rooms, who during a rally said that the government is ready to exceed the ceiling of 3% in the deficit/GDP ratio and the 130- 140% between debt and GDP until unemployment falls. “We will spend whatever we have to spend and if someone in Brussels complains we will make up for it”.
After this shot, the spread between the BTP and the Bund shot up to 284 points from 277, the highest since mid-February, to then close at 281, while the yield on the ten-year bond rose to 2,74%. "Talking about overshooting the debt/GDP ratio is irresponsible," said the other deputy prime minister, Luigi Di Maio.
YIELDS RISE TO 3 YEARS AT AUCTION
In the morning, the Treasury assigned all the 6,75 billion offered in three-, seven- and 30-year BTPs with an increasing yield for the first two maturities (respectively the maximum since December for the 3-year and since February for the 7-year). and down instead for the 30-year segment.
UNICREDIT ON THE TRACKS OF COMMERZBANK, SALE FINECO
Reuters' indiscretions enlivened the share session: according to the agency, Unicredit (-1,7%) gave a mandate to Lazard and JP Morgan to study an offer on Commerzbank, to be integrated with the Bavarian subsidiary of the Italian institute, the Hvb. It is an operation that has been talked about for some time but which has already met with the hostility of the German trade unions.
Meanwhile, Fineco Bank, which left the scope of consolidation of the bank in Piazza Gae Aulenti on Monday, achieved a 2% increase: a stake of BlackRock stands out in the capital equal to 7,25%, of which 6,31% with of vote for the US management giant that has renounced entry into Carige.
TO THE RESCUE PRYSMIAN AND STM
Recovery day for several industrial blue chips affected by the downturn in recent days. Prysmian redeems itself in a big way (+7%) after the quarterly data (adjusted ebitda at 731 million, +17%) showed that the cable group hasn't suffered much from the problems in Wales, which are in any case being resolved.
Equally lively was the rebound of Stm (+6,6%), which during the meeting with analysts in London confirmed its forecasts for the current year: operating profit in the range between 1.04 and 1,32 billion dollars.
FCA GOES ELECTRIC, PIRELLI FOCUSES ON BRAZIL
Also levied for the automotive sector. Fiat Chrysler is making progress (+1,5%) following the announcement that the company has started work on the launch of the 500 BEV, equipped with an electric motor, production of which should start in 2020. Ferrari is also making progress (+3,2% ), Brembo moved little (+0,6%).
Pirelli (+1,6%) has announced that it will invest 120 million euros in the reorganization of activities in Brazil.
Italgas stands out among the utilities (+0,8%). During the meeting, the interest in Ascopiave was confirmed (+3,13%).
Worth noting is Campari (-0,76%): the company announced the exercise by 49 executives of stock options on 6,9 million shares.
SAFILO BUY ON BECKHAM
Out of the main list, Safilo increases (+4,1%) after the announcement of a ten-year license agreement with David Beckham. Technogym +5,3% to 10,02 euros after the accounts.
