THE DROP OF THE EURO GIVES THE CHARGE ON THE DAY OF QE. THE STATE AT 4% IN MPS. BEIJING HOLDS BACK GROWTH
The European Qe produces its effects, even before the bazooka's Mario Draghi fire the first shot. The euro is down for the fifth consecutive day against the dollar, reaching levels not seen for 13 years: the euro-dollar cross is 1,1072 against 1,1170 at Tuesday's close.
ABBVIE, NEW BIG SHOT IN PHARMA
The rise in the dollar weighs on US stock markets: the Dow Jones index fell by 0,58%, the S&P 500 -0,42% and the Nasdaq -0,26%. The Beige Book confirms the recovery underway in the American economy but signals that the strength of the currency is starting to weigh on the companies most exposed to the European market. Abercrombie & Fitch, the casual multinational tumbled 10% after reporting lower-than-expected quarterly data, the company warns that the first half of 2015 will still be challenging.
New fireworks in the pharma sector: Abbvie has acquired Pharmacyclis, an anticancer drug, for 21 billion dollars with a spectacular last-minute overtaking of Johnson & Johnson's offer (17,5 billion).
EUROPE RISES AGAIN ON QE DAY
The fall of the euro, on the other hand, acted as a propellant for the rise of the stock exchanges in the eurozone. The disappointing data on activity in the services segment only held back European stock markets during the morning. Piazza Affari canceled the morning's losses. The index Ftse Eb gained 0,65% yesterday to close at 22.131 points. Also positive were the Cac-40 (+0,99%), the Dax (+0,98%), the Ibex (+0,33%) and the Ftse-100 (+0,44%).
Government bond market moved little while awaiting today's ECB summit, which will provide the latest details of the Qe and will update the forecasts on European growth. The ten-year BTP yield rises to 1,38% and thus loses contact with the Spanish Bonos, traded at 1,34% (-4 basis points). The Greek situation worsens. Yesterday Athens, in search of money to repay the IMF this week, placed 1,1 billion 6-month bonds at 2,97%.
BEIJING CONFIRMS: GROWTH WILL FALL TO 2015% IN 7
The Asian stock exchanges mark time, awaiting indications on the US labor market. Tokyo rises slightly, Asia Pacific price lists slow down.
The most important news comes from the Chinese Communist Party Congress underway in Beijing: premier Li Kequiang announced that GDP growth in 2015, the year of the sheep, will drop to 7% from 7,4% in 2014, already the lowest result since 1989. "If we know how to maintain this rate of development in the coming years - added the number one of the government - we will be able to ensure the right balance between modernization and income growth for the country".
The Shanghai Stock Exchange is down by 1,1%: the new trend takes away the hope of strong stimuli for the economy.
MPS, INCREASE FROM 3 BILLION AND GROUPING OF SHARES FROM 1 TO 20
Among the banks in evidence Monte Paschi +2,6%. Yesterday evening, the board proposed to the shareholders' meeting, convened for 14 April, to increase the capital up to 3 billion following a grouping of shares, at the rate of one new ordinary for every twenty owned.
The bank said it will give the Treasury 449 million new shares, at the price calculated as the average over the previous 10 days, as interest payments of 243 million euros owed on the Monti bonds.
The Treasury, calculates the bank, will have a share of around 4% after the increase considering the current capitalization, the new increase and values in line with the current ones. Christian Whamond, director of Fintech Europe, joins the board of directors, replacing the outgoing David Martinez, the main shareholder of Fintech itself.
CREVAL +7%, FIVE APPLICANTS FOR ICBPI
The crisis has hit the Italian banking system hard, underlined yesterday the director general of Unicredit, Roberto Nicastro. "By the end of the year we expect 350 billion of non-performing loans," Nicastro said in a Senate hearing. “It is about 750.000 billion of the old lire, it is an impressive figure that absorbs a lot of capital”. According to data from the International Monetary Fund, Italian banks have approximately 330 billion in anomalous loans, i.e. loans that will be repaid late or not at all. This figure, which corresponds to about a fifth of Italy's GDP, has tripled since 2007.
Good on the stock market Unicredit +1,4%, down Understanding -0,1%. There Banca Popolare dell'Emilia Romagna salt by 3%. The BoD approved the distribution of a dividend of 2 cents per share for a total amount of 9,63 million euro. The last dividend, in paper form, was distributed by the bank for the 2011 financial year.
Highlight the Valtellinese credit +7% after new rumors about the sale of ICBPI: binding offers should be received by March 25th. There are currently five stakeholders: Advent-Bain-Clessidra, Bc Partner-Cinven, Permira-Cvc, Lone Star and Hellman&Friedman; the favorites would be the top two. Banca Akros raised the target price on the stock to 1,3 euros from 1,1 euros, confirming the accumulated recommendation. Banco Popolare + 1,5%.
Anima Holding shines with an increase of 3,6% which pushes the share to 5,22 euros, one step away from the all-time high of 5,285 euros marked on 2 March. Yesterday morning UBS reiterated its Buy recommendation, raising the target price to 6 euros from 5 euros.
EXXON CUTS INVESTMENT. ENI -0,5%
Oil prices will stay low for quite a while. Despite the downward pressure from Saudi Arabia, the production of American shale oil is proving to be more resistant than expected to the drop in prices. With these reasons Rex Tillerson, CEO of Exxon Mobil, announced the drop in investments of the oil giant.
Meanwhile, the data on US weekly inventories published in the afternoon showed an increase of 10,3 million barrels against the +4,2 million estimated. The negative repercussion on the price of oil was sharp: Brent lost 2,3% and slipped to 59,6 dollars a barrel. Eni it lost about half a point to 16,28 euros.
RISE TELECOM. THE LITTLE BROADBAND FLYING
Telecom Italy gains 1,7% and closes at highs. Yesterday the Council of Ministers approved the broadband plan which envisages coverage targets of up to 50% of the population at 100 mbt/s by 2020. The provision does not require the scrapping of the copper network and does not provide for universal service.
The listed companies that offer connectivity in Italy also react to the news, such as MC-LINK, a subject specializing in services to small and medium-sized enterprises via optical fiber, +12%. GO Internet + 4,5%.
ALTAVILLA CONFIRMS: FCA IN BREAK EVEN IN 2015
FCA +2,57% to 13,98 euros canceled Tuesday's losses. Alfredo Altavilla, head of the group's EMEA area, reiterated that the group will reach operational break-even in the EMEA region as early as 2015. “In Europe – he added – we see a market marginally higher than in 2014 but by no more than 1 % and the Italian one by 2-3%”.
Among the other industrialists, the new increase in Stm +0,91% should be noted. Bryan Garnier raised the fair value from 7,6 to 8 euros after the company's presentation at the Mobile World Congress in Barcelona.
MONCLER, MORE PROFITS, LESS DEBTS
The luxury sector is lively. Moncler + 0,6% to 13,39 euros announced in the evening the data of the 2014 financial statements closed with net profits growing to 130,3 million from 76,1 in 2013. Revenues rose from 580,6 to 694,2 million and the operating result increased from 166,4 to 201,6 million. At the same time, net financial debt fell to 111,2 million compared to 171,1 in 2013 "mainly thanks to cash flow generation" specifies the company press release.
Banca Imi confirmed the buy recommendation and the target price of 14,2 euros on the stock. In the rest of the sector Salvatore Ferragamo closes up 0,5%. leap of Yoox +3,2%. It's an exception Luxottica -0,37% despite having collected two target price increases from Deutsche Bank (from 48 to 52 euros, hold confirmed) and from Kepler Cheuvreux (from 44 to 50 euros, hold unchanged). Fidentiis, on the other hand, reduced the recommendation on the stock from buy to hold, with the valuation range going from 54-55 euros to 45-46 euros.
ANALYSTS REWARD DIASORIN +4,5%
On the rest of the price list, the appreciations for Diasorin +4,5% after the results. Mediobanca Securities raised the target price on the stock to 40 euros from 34 euros, confirming the neutral recommendation. Equita Sim also increased the target price to 37,5 from 35,2 euro (rating hold) showing a strong cash flow for the fourth quarter. Banca Akros (Tp at 40,2 euros from 36,6 euros, accumulated ratings) appreciated "the group's continued ability to generate strong cash flows". Finally, Kepler Cheuvreux raised the target price on the stock to 37 euros from 31 euros, confirming the hold rating.
