The challenge of Donald Trump, barricaded in the White House and determined not to recognize the verdict of the polls, is starting to cause serious disruptions in the functioning of the markets. Yesterday, as the tycoon rallied his closest lawmakers (receiving tepid support), the markets had to take note of the refusal of outgoing Treasury secretary Stephen Mnuchin to extend the main financial assistance programs launched together with the Federal Reserve to time of the outbreak of the pandemic.
US TREASURY ASKS FOR MONEY BACK, FED RISES
Indeed, the Treasury has asked for the money back by announcing the withdrawal of state guarantees on five loan plans and two plans for the purchase of bills issued by companies. The Federal Reserve, which for months has been asking for all emergency intervention instruments to be moved forward indefinitely, did not take it well and issued a statement to underline the dangers of financial stress caused by the decision of the White House. The new tug of war does not worry the markets too much, also because in the evening conciliatory declarations arrived from Congress on the new stimulus plan for families and businesses affected by the pandemic. But the conflict, which coincides with an unexpected increase in the unemployed, certainly does not help.
PRICES FALL IN JAPAN, MACY'S COLLAPSES IN NEW YORK
Asian markets were mixed this morning. Tokyo's Nikkei closed down 0,3% on the day of raising the level of health alarm in the capital and the release of inflation data. Demography continues to make its effects felt in Japan: in October, consumer prices, excluding fresh air, recorded the year-on-year drop of the last ten years (-0,7%). In this climate, the visit of the IOC to evaluate the hypothesis of restarting the Olympic Games machine in 2021 ended. The yen weakens against the dollar after six consecutive sessions of appreciation.
Hong Kong's Hang Seng (+0,5%) and Mumbai's Sensex (+0,3%) both up; on parity the CSI 300 of the Shanghai and Shenzen price lists and the Kospi of Seoul.
Futures on the S&P index fell this morning (-0,4%, +0,39% yesterday closing); Dow Jones +0,15%, Nasdaq +0,87%.
Macy's -20%: the crisis of traditional commerce continues. Today is Amazon's Black Friday.
The race of bitcoin continues, rising beyond the peak of 18 thousand dollars (+ 80% in less than two weeks).
The euro appreciated slightly against the dollar, at 1,188. Last month, the euro was the most used currency in the world for cross-border payments: it hasn't happened since February 2013 that the single currency surpassed the dollar.
WTI oil is down 0,3%, at 41,6 dollars a barrel: the third consecutive session of increases is approaching. Same situation for Brent. Libya makes it known that it has reached 1,25 million barrels of crude oil exported per day. In China, inventories are at 70,3% of total capacity, down from the record levels of the previous survey (73%).
RECOVERY, NO OF HUNGARY AND POLAND. LAGARDE: RECOVERY AT RISK
“Hungary and Poland vetoed the decision on the Recovery Fund and made it clear that they cannot accept conditionality on the rule of law: we cannot send the proposal to the European Parliament”. Angela Merkel is dry in describing the outcome of the video summit between the heads of state and government of the Union. The 750 billion Next Generation Eu and the 2021-2027 EU Budget of 1.074 billion remain at a standstill, victims of the "no" by Viktor Orbàn and Mateusz Moraviecki to the choice of linking the payment of funds to respect for the rule of law. The stop, it detects in front of the European Parliament Christine Lagarde, coincides with “the most dangerous season”, which will last “until the vaccines are at an advanced stage and the recovery can regain momentum”. Hence the appeal to governments so that “the Next Generation package becomes operational without delay in order to facilitate expansionary fiscal policies. If this does not happen – continued Lagarde – consumers will remain very cautious in a highly uncertain environment”.
BUSINESS PLACE AFTER FOUR RAISES THE BRAKE
The positive streak of Piazza Affari was interrupted: -0,45%, to 21.536 points, after four consecutive upward sessions. The other European lists remain further behind. Frankfurt -0,85%. German conglomerate Thyssengroup shed 7,1% after saying it will need to cut another 5 jobs (in addition to the 6 already announced) to mitigate the impact of the coronavirus crisis on the company's business.
MAIL IS BOOMING IN LONDON
London -0,77%. British Royal Mail +8,1% after it revised upwards its forecast for the year on the back of an increase in demand for delivery services thanks to online shopping.
Paris -0,67%. Vallourec, a competitor of Tenaris, plunges by 10% after the first nine months. Madrid -0,57%.
Norwegian drops 15,0% after filing for bankruptcy.
Swiss engineering company ABB was down 2,7% after announcing the sale of three subsidiaries generating $1,75 billion in sales.
GOLD SLIDES TO LOWS, TURKISH LIRA BOUNCES
Gold slid down 0,7% to $1.859, close to a four-month low. Since the record peak of 2020 it has lost 10%.
Among the currencies, the Turkish lira stood out, one of the best-selling emerging currencies during 2020 (-35% against the euro since January 4,75st). The central bank raised its key interest rate by 10,25 points from 15% to XNUMX% in its first monetary policy meeting under the leadership of new governor Naci Agbal and after the resignation of the minister of Treasury and Finance Berat Albayrak, son-in-law of President Recep Tayyip Erdogan, who thus bowed to his great enemy, the financial market.
SPREAD TO 118, THE SPANISH XNUMX-YEAR TOWARDS ZERO INTEREST
Final session on parity for the BTPs, which recover from the lows of the morning at the end of a session lacking in ideas. In view of the Thanksgiving holiday, liquidity on the markets is reduced. The movement of the Italian market followed that of the German curve, with the yield gap between ten years ending at 118 basis points.
The Spanish card has been bought well: the 60-year rate is ever closer to the psychological threshold of zero, lagging behind Germany by just over XNUMX cents.
INWIT SUPERSTAR UNDER THE PUSH OF THE IPO OF VANTAGE (VODAFONE)
The best stock on Piazza Affari was Inwit (+3,3%), in the wake of the Investor Day of Vantage Towers, the Vodafone tower company which yesterday presented its next IPO, worth at least 14 billion pounds. Inwit, controlled by Tim and Vodafone, could, according to Bloomberg, distribute a coupon of 30 euros (+76%).
SNAM BLITZ IN DE NORA, LEADER OF GREEN HYDROGEN
Snam also performed well (+2%), which bought 33% of the electrode manufacturer De Nora from the private equity fund Blackstone. 100% of the company was valued at 1,2 billion euros. De Nora is also active in green hydrogen and water treatment technologies. For CEO Marco Averà this is a "unique opportunity" to strengthen Snam's role in the energy transition. “The partnership with De Nora – he adds – will allow us to be leaders in the development of green hydrogen, which is becoming a key element of decarbonisation in Italy, in Europe and in many countries around the world”.
Italgas (+0,66%), A2A (+0,49%) and Enel (+0,52%) also made progress. Flat Terna (+0,03%), after the announcement of the industrial plan to 2025 which provides for a strong acceleration of investments in regulated activities in Italy.
STELLANTIS IS APPROACHING, FCA RUNS
FCA runs (+2,07%) after the announcement that the meetings for the merger with Peugeot and the birth of Stellantis will be held on January 4th. Diasorin rears its head (+1,59%). Among the banks, Bper remains well bought (+0,64%), in a context of weakness for the sector. Sales hit Amplifon (-3,74%); Prysmian (-2,68%); Banca Mediolanum (-2,52%) and Azimut (-2,38%).
RETRACE MEDIASET, THE MEDIA HOLDING OF SERIE A AT THE START
Out of the main basket Mediaset retraces, down 2,51% after denying having received letters from the Vivendi board addressed to the group's board of directors (as reported by press sources) in an attempt to resolve the disputes that have been going on for some time.
Listed football is weak: Juventus -1,45%, Rome -4,18%. The assembly of the Lega Serie A has accepted the joint offer of CVC, Advent and FSI which have put on the plate 1,7 billion euros for the 10% of the company that will manage the media rights of the soccer championship.
THE FIRST HOUSE PUSHES MUTUIONLINE (+6,2%)
Leap of Mutuionline (+6,19%): according to the Observatory of the company, in October applications for mortgages for the purpose of buying a first home reached their highest level since the third quarter of last year, at 47,4 % of the total. Esprinet -3%: Irtop has raised the target price of the share to 11,26 euros, from the previous 8,26 euros. Technogym -4,5%: Stifel cut its rating to Hold, with a target price of 9,30 euros.
