FIAT AND GENERALI, THE DAY OF ACCOUNTS. BTP, RECORDS IN SIGHT
WAITING FOR THE FED UPS IN FREEZING WALL STREET, TWITTER FLYING
The march of Asian price lists continues. The Tokyo Stock Exchange is up +0,3% despite the slowdown in industrial production, offset however by the decline in the yen. Hong Kong +0.70% and Chinese lists also rose.
Thwarted Wall Street ending: The Dow Jones index fell 0,42%, the S&P 500 0,3% and the Nasdaq just 0,05%.
The setback was determined by the negative data of transport services, a key indicator for assessing the trend of the economy. Ups loses 3,7%, dragging down competitors such as FedEx -1,4%.
After the Stock Exchange, however, we should point out the boom in Twitter +14,2% after the accounts for the quarter.
After a very volatile session, the European stock exchanges took courage towards the end, closing at the highs for the day, before the US slowdown. Frankfurt, Paris and Madrid all tied for a 0,6% gain. London was up 0,4%.
Piazza Affari did well with the Ftse Mib which rose by 0,7%.
Awaiting the Fed, a new record for the dollar: the American currency is trading at 1,3411 against the euro, the highest since last November.
WTI-type oil trades at $100,6 a barrel, down 1%.
Gold down to 1299 dollars an ounce.
US GDP EXPECTED AT +3,2%. ARGENTINA LAST BEACH
There is certainly no shortage of market movers on this midsummer Wednesday:
A rain of data will flood the price lists today, in Europe as in the USA. The most important, out at 14.30, concerns the first estimate of US gross domestic product for the second quarter of 2014, which has the thankless task of offsetting the fiasco of the first quarter. An increase of 3,2% is expected. At 20 will be released the final release of the FOMC, the monetary committee of the Federal Reserve. A new cut in purchases on the central bank market (from 35 to 25 billion) has been discounted, there is anticipation for the message that could contain more rigid tones on the interest rate front .
The geopolitical situation, while incandescent, remains in the background. The new sanctions against Russia have been discounted with a certain sufficiency, as confirmed by the rebound of the ruble against the dollar.
However, doubts about Argentina continue. Credit default swaps on Buenos Aires debt rose to a six-week high yesterday on fears the country could default again this week.
Today a new meeting is scheduled between the country's representatives and the so-called 'holdouts', ie investors who have not accepted the previous restructuring of Argentina's debt and who have filed a lawsuit in Buenos Aires only to be proved right by a US court.
This bombardment of data and events comes at a particular time on the markets, with US equity not far from historical highs, rates at their lowest for the year (European ones at all-time lows) and volatility on assets (and in particular on currencies ) in turn on the lows.
BOT SUPERSTAR, TODAY IT'S THE BTP'S TURN
US rates at the lowest for the year (the ten-year rate is 2,465%), European ones at the absolute lows.
The 10-year Bund trades at 1,12%, driving down the yields of Italy and Spain. The spread between the 150-year BTP and the Bund falls to 10 basis points, while the yield on the 2,64-year BTP falls to an all-time low of XNUMX%.
It is in this optimal framework that the Treasury concludes today the round of month-end auctions by offering up to 7 billion in the medium and long term, including 2-2,5 billion over ten years.
Meanwhile, excellent indications arrived yesterday from the six-month Bot auction. The Italian Treasury placed 7 billion in six months with a rate of return down to 0,236% from the previous 0,309%. This is the new all-time low.
Edison, Fiat, Generali and Enel Green Power
BANKS, THE DAY OF THE RECOVERY
All banks have taken the bullish road: Understanding+0,6% and Unicredit + 1,4%.
Montepaschi+0,6%. From the communications to Consob on the relevant shareholdings, it emerges that York Capital Management Global Advisors has purchased 5,025% of the Sienese bank's capital for asset management purposes. The operation dates back to July 4 last year.
Banco Popolare + 0,8% UBI Banca+ 3% Pop. Milan+ 0,8%.
Banca Popolare dell'Emilia Romagna+1,3%. The capital increase concluded with the full subscription of the shares offered, for a total value of 749,7 million euro.
General Bank +1%, net profit for the first six months grew to 88,4 million euro (+24%), which is the best result in the company's history.
Generali +0,98% . The company, which will meet the board today for the quarterly, will increase to 100% of Gph, the holding that controls various insurance and financial businesses in the countries of Central and Eastern Europe, from the current 76% by January 2015 at a price of 1,235 billion .
FIAT HOLDS THE DESCENT. INCENTIVES IN SIGHT
Recover in the final Fiat -0,6% which had come to lose almost 2%. Today the board examines the accounts for the first half: expectation for the stability of the Brazilian market. Minister Lupi said the government is studying incentives for the purchase of new cars.
Industrial Driver's License + 0,4%. The company has opened the largest agricultural machinery plant in the northeast of the country, where it will manufacture a full line of equipment under the Case IH and New Holland brands,
Weak instead Pirelli -0,3%.
BANK OF AMERICA PROMOTES ENEL GREEN POWER
Avanza Enel Green Power +2%, on the eve of today's council meeting. The renewable group has started work on the construction of a wind farm in Mexico, with an investment of 170 million.
Bofa – Merrill Lynch confirmed the Buy recommendation, raising the target price to 2,35 euros from 2,25 euros.
According to American analysts, the company remains the only purchasing opportunity in the renewable energy sector in Europe because it offers a good combination of "value" and "growth rates".
Enel+ 1,6% A2A+ 0,7%.
STM, SAIPEM AND LUXURY UNDER PRESSURE
Still down StM.8% to 6,275 euros. This morning Bernstein decided to cut the Underperform recommendation from Market Perform, confirming the target price of 5,5 euros.
Even heavier sales on Saipem 3% to 17,85 euros: before the announcement of the quarterly the share had gone up to 18,74 euros. The group closed the second quarter with net profits of 75 million euros. Revenues amount to 3,075 billion, with an Ebit of 166 million.
For the whole of 2014, a net profit of between 280 and 330 million is forecast, an Ebit between 600 and 700 million, revenues of 13 billion and a net debt between 4,2 and 4,5 billion. These are lower indications than those previously provided.
This morning the group announced that it has been awarded new drilling contracts in Indonesia, West Africa, the Arabian Gulf and Latin America for a value of approximately 850 million dollars, of which 540 related to offshore activities.
Luxury also suffers. Ferragamo -3,2% Yoox,6% waiting for the quarterly, Tod’s -1,8% Moncler-3%.
BOLLORE'- MEDIASET, TESTS OF AGREEMENT IN PREMIUM
Mediaset +1,5%. company recorded a loss of EUR 20,5 mln in the first half compared to a profit of EUR 30,1 mln in the same period last year due to the adjustment of the book value of the stake in Digital Plus to the realizable value which resulted in a cost of 12,3 million. However, it has achieved two objectives: decreasing operating costs and debt reduction. Uncertain outlook. Management takes time on Premium
Vincent Bolloré, first shareholder of Vivendi, would be interested in a share of Mediaset Premium.
