ASIA UP AFTER THE BEIGE BOOK, THE ECB TODAY
RADARS POINTED ON THE YELLOW MONTE PASCHI
Kiev, for now, it takes a back seat. Other topics enter the market radars, from China to Beige Book Usa, fortunately less dramatic. During the day, then, attention will be focused on the directorate of the ECB: Joachim Fels, chief economist of Morgan Stanley invites Mario Draghi to act because "the risks of Japanese-style deflation are high and growing". Similar invitations come from the IMF.
Salt there Tokyo Stock Exchange +1,7%, already focused on tomorrow's US data. Similar reactions on the other lists, with the exception of Shanghai -0,7%, which continues to make its own story.
Tomorrow it could be decreed the first corporate bond default in China, that of ChaoriSolar, a manufacturer of solar panels. A sign of cleaning up the market, for some. Others fear that the authorities' decision not to intervene to prevent crack could set off a chain reaction.
COLD WALL STREET, SMITH & WESSON WARMS IT
Flat Wall Street waiting for tomorrow's jobs data: Dow Jones -0,2%, S&P -0,1%.
It strikes the excellent state of health of Smith & Wesson, the best stock on Wall Street with a jump of 16% after the fiscal year: arms sales are booming and the company raises its profit targets from 1,35 to 1,42 dollars per share.
Il Maltempo it had significant consequences on consumption and car sales, but growth continued, albeit at moderate rates, in 8 of the 12 districts of the United States. This is the picture that emerges from the Beige Book published yesterday evening, a few hours after the disappointing data on hiring in the private sector (139 hires against the 155 expected).
"I will do everything in my power to support the recovery of employment," he said yesterday Janet Yellen, speaking at a Fed conference. "The situation is improving - he added - but we still have a lot to do". Meanwhile, the president of the Fed of Sa Francisco John Williams makes a prediction: rates will rise again from mid-2015.
MILAN FROM GRAND PRIX, SPREAD TO 175
The European Stock Exchanges are cautious, except Madrid which rose by 0,8%. London's FTSE100 index fell by 0,7%, Paris was unchanged, Frankfurt lost 0,5%.
The surprise came from Milan which, in the afternoon, unleashed a Grand Prix acceleration: Business Square closed the session with the FtseMib index up 1,3%, on the highest level since June 2011.
No less brilliant is the Italian bond, which pushes the spread yield on the 180-year Bund below 2011 basis points for the first time since mid-175. In the afternoon the gap dropped to XNUMX basis points. The severe judgment of the EU Commission which placed Italy, together with Croatia and Slovenia, in the group of "seriously insufficient" countries did not matter.
STRONG HANDS ON SIENA: MONTE PASCHI TO THE STARS
Aaa, strong hands wanted. From the first Consob investigations it emerges that the boom of the Monte Pasch stocki, which closed yesterday at 0,22 euro, with a growth of 19,24% on the previous closing and after being suspended twice during the day on the upside, is linked to purchases of one or a few strong hands capable of triggering such a robust movement. Explosive volumes: 1,45 billion shares changed hands, equal to about 11% of the share capital.
The ride of the title therefore raises more than one question. What stage is the research at? Foundation of the buyer of a 20% stake in the third largest Italian bank? Are any private partners leaving? Do the purchases originate from a bet or from more or less precise information?
The appointment for the next episode of Siena's thriller appears increasingly tangled. The Foundation seems determined to initiate criminal proceedings against the former top management and 11 banks for initiatives related to past management. One more obstacle for the formation of the guarantee consortium for the increase that Fabrizio Viola plans (or planned) to announce next week
BUY RAIN ON ITALIAN BANKS
The index of Italian banks marks +3%, clearly detaching the sector's Eurostoxx (+0,53%).
Mediobanca gained 4,2% after the promotion of the American broker Kbw to Outperform. Analysts are starting to estimate the effects of the capital increases on the profits of Mediobanca, at the center of placement syndicates.
Understanding rose by 2,5% and Ubi +2,7%: both were promoted to Outperform by Credit Suisse. Unicredit gained 2,6%.
Sharp rises for Pop.Milan +6,3% and Banco Popolare +1,7%.
Bper also rises +2,40%. The institute closed 2013 with a total net profit of 16,1 million euro after the loss of 32,6 million in 2012. The core Tier 1 rises to 8,57% (from 8,27).
Il Valtellinese credit recorded a leap of 10,56% after announcing yesterday, together with the 2013 accounts and the new industrial plan for 2016, a capital increase of up to 400 million euros.
Among the insurance companies, UnipolSai +2,3%, Generali +0,4% performed well.
FIAT AT THE TOP, YOOX WEAK AFTER A RECORD YEAR
Here is, in summary, the rest of the list.
INDUSTRIAL.
In great evidence Fiat which gained 4,1% to 8,055 euros, new highs since January 2011. Two brokers confirmed the positive opinion. For Mediobanca the Fiat share is Outperform with a target of 9 euro, for Banca Akros it is a Buy with a target price of 10 euro. Since the beginning of 2014, Fiat has recorded a gain of 36% and is the fourth best stock in the Eurostoxx 600 index. The first is Peugeot (+44%). StM +0,6%. Weak Finmeccanica -1,6%. The rebound of Piaggio +6,96% is significant, benefiting from the positive data received yesterday on sales in the sector. “The news that the market is recovering after something like 35 consecutive months of slowdown is positive” reads a note from Banca Akros.
UTILITIES.
Enel it closed up 2,9%. Morgan Stanley analysts have raised the target on the stock to 3,85 euros from 3,5 euros, maintaining the Overweight rating Ubs also raised the target which brought the new target price to 4,15 euros from 3,8 euros, confirming Buy rating Enel is the second best blue chip in the Eurostoxx 50 since the beginning of the year with an 18% gain. Almost unchanged Eni. The Italian oil company and Spain's Repsol will begin the first offshore natural gas production in a Venezuelan field located in the Gulf of Mexico by the end of the year. Telecom Italia +1,3%.
LUXURY.
All stocks in the sector are down: Ferragamo -0,9% Tod’s unchanged, Luxottica -1,3%. Brake Yoox -1,5%. A record year for the e-commerce group which closed 2013 with growth in net profit of 23,9% to 12,6 million euros from 10,2 million for the year 2012. Revenues grew by 21,2%, from 375,9 million to 455,6 million, while the ebitda increased by 34,2% from 32,1 to 43,1 million, with a margin of 9,5 .XNUMX%
SMALL CAPS.
Ferrarese land reclamation sinks -12,3% after Bankitalia's no to the offer presented by a consortium of investors. Nice is up 10% to 3,40 euros, a price it has not seen since February 2011. 432 shares changed hands, against a daily average in the last month of only 28 shares. This is the second session in terms of higher volumes since 2007. The company, one of the world leaders in the sector, deals with the automation of gates and domotics.
