A North Korean missile flew 2.700 kilometers at a height of 500 meters over the skies of Hokkaido, Japan's second island, before breaking apart in Japanese territorial waters. An act of war that provides proof that Kim, the dictator of Pyongyang, now has very long-range vectors.
The news had the effect of sending gold prices into orbit, already in tension after the bankers' summit in Jackson Hole, up to 1324 dollars an ounce, the highest since November 9, the date of the US elections.
Other traditional safe-haven assets are also growing strongly: the yen rises to 108,33 against the dollar, the same does the Swiss franc, traded at 0,9498 against the US currency and also on the rise against the euro (1,1396). But Kim's missiles have not reversed the course of the single currency against the dollar: 1,1986, or the highest quotation for two and a half years, one step away from the threshold of 1,2 which, forecast by Natixis analysts, will probably overcome before the ECB directive of 7 September.
SEOUL -1,6%, BUND FUTURES LIVE
The future on the Bund in early trading this morning rose by 7 points to 165,03. The markets thus start towards September in an increasingly complicated condition for the bull: a weak dollar, to the detriment of European exports; international tensions on the rise, the oil industry under great stress while the streets of Houston, the capital of shale oil, have turned into rivers in flood.
Asian stocks immediately felt the pinch after the rocket launch (5,57am Tokyo time). The Japanese Nikkei index lost just under a percentage point, to its lowest level in 4 months. Obviously the Seoul Stock Exchange is also under fire: -1,6%. Samsung is doing worse (-2%): since Friday, the day the heir to the group was sentenced for corruption, the stock has lost 4,6%. Sidney also retreats, which has canceled the earnings of 2017.
HARVEY KO US OIL
American stock exchanges moved little: Hurricane Harvey knocked out the energy sector, but tech and pharma supported prices. The Dow Jones closed flat at -0,02%, S&P500 +0,05%, Nasdaq +0,28%. The impact of Harvey caused a drop in crude oil prices: -2,5% to 46,68 dollars, due to fears that the severely affected refineries will not be able to resume operations for weeks. Gasoline, on the other hand, increased (+7%). Sector stocks fell: Exxon -0,5%, Chevron -0,7%. Up the refining industry: Valero Energy +1,3%. Eni (+0,4%) and Saipem (-0,20%) made little moves in Piazza Affari. In red Tenaris (-0,97%). The title travels to levels it hasn't seen since May and in recent months has seen a drop of more than 20% in its value.
Harvey is not a disgrace for everyone: Home Depot (+1,2%) expects a strong increase in sales linked to home renovations. The insurers lose out: Insurers Travelers (-2,6%).
APPLE ADVANCES, OUT OF FIRE ON BIOTECH
Expedia lost 4,5% after the resignation of CEO Dara Khosrowshahi, called to Uber's bedside. Apple +1,01% at $161,47 is the best blue chip in the Dow Jones. The wait for the new iPhone is rising with press rumors according to which the manufacturer Apple has organized an event for next September 12th. The Wall Street Journal anticipates it.
Fireworks day for the pharma sector. Gilead Science climbed 2,6% after confirming it will acquire Kite Permakite for $11,9 billion, as anticipated by the Wall Street Journal. Kite Pharma stock gained 29%. Aveo Pharmaceuticals jumped 27,6% after announcing approval of its drug for the treatment of the most common type of kidney cancer in the European Union, Norway and Iceland.
A consortium led by Western Digital (+1%) is close to completing an agreement to buy Toshiba's chip assets and the CEO of the American group is in Tokyo to close the long and difficult negotiations.
EUROPE, OPENING IN RED. HOLDS PLACE OF BUSINESS
The alarm caused by the Korean missile is also destined to weigh on European openness. In London, which closed yesterday, futures recorded a drop of 0,7%.
Meanwhile, tensions on the Brexit front are growing. The negotiator for the EU, Michel Barnier, has asked the British "to get serious", addressing the issue of the costs of divorce. Angry British reply. Meanwhile Theresa May, in Tokyo to sign a commercial treaty, was frozen by Shinzo Abe: first you have to close the deal with Brussels, then we'll figure out how to deal with cars and bank offices.
Light session yesterday in terms of volumes for the European stock exchanges. The best market was Piazza Affari: the Ftse Mib index contained the decline at 0,02% at 21.740 points. The other markets were in the red: Paris +0,40%, Frankfurt -0,37%, Madrid -0,32%. Outside the euro area Zurich -0,47%. Limit Damage London (-0,09%).
The good performance of the Italian market is also linked to the positive macro data. Manufacturing business confidence rose to 108,1 in August from 107,8 to its highest level since December 2007. The overall business climate index rose to 107 from 105,6, reaching its highest level since June 2007.
GOOD FOR THE CTZ, TODAY IT'S THE TURN OF THE BOT AUCTION
The BTPs are solid on the starting day of the month-end auctions. The portfolio of Italian government securities held by national institutions in July rose again to 380,463 billion, after reaching the minimum since February 2013 the previous month at 376,5 billion. The spread between the Italian paper and the Bund stops at 171 bp, the 2,10-year BTP travels below 2,17% (compared to the previous 2%). Started yesterday with the assignment of 0 billion Ctz at -139%, the month-end auctions continue today with the six-month BOT offered for 6 billion against the 6,15 billion expiring. The stock of February 28, 2018 was traded yesterday on the Mts gray market at a yield of -0,349%, to be compared with the -0,362% at the end of July after the low of the series reached at the end of June.
Tomorrow it will close with the medium-long. The Ministry of the Economy will make available to investors an amount between 5,75 billion and 7,25 billion euros on two BTPs and a CCTEU.
FCA ALSO SPEAKS A RUMOR ABOUT THE KOREAN KIA
It calms down but not too feverishly on Fiat Chrysler: +0,24% to 12,43 euros, one step away from Thursday's record (12,49 euros) after recovering beyond one point of initial loss. The market still believes in the M&A speculation after gaining around 18% last week.
Yesterday a new rumor also thought about moving the market. In the future of FCA there would be the Koreans of Kia-Hyundai. This is what we read on the Asia Times website. The Hong Kong online newspaper reported that the president and CEO of the company, Sergio Marchionne, would have set his sights on a merger with the South Korean house. The indiscretion comes after the Chinese group Great Wall denied interest in the Jeep brand. The Chinese manufacturer would not have enough cash to bet on Fiat Chrysler. According to Asia Times, the Great Wall rumors were circulated to soften public opinion and Donald Trump's administration, which, opposed to a sale to the Chinese enemy, could see a merger with the HMG group more favorably.
Weak Ferrari (-0,8%). The impact of the news that the contract with Sebastian Vettel has been extended until 2020 is modest. Exor also fell (-0,56%).
BANCO BPM, THE INSURANCE PARTNER SOON
The weakness of the dollar affected some shares more closely linked to the US market: Brembo -0,1%, Buzzi -0,8%, Leonardo -1%, Stm -0,5%.
The banks are doing well: the index of the Italian banking sector rose by 0,3% against a European sector which fell by 0,3%. Banco Bpm rises by about one and a half percentage points pending the choice of the new insurance partner after the exit of Aviva and Unipol. Intesa +0,9 Mediobanca +1% and Bper +0,8%. Carige (-1,4%) has convened the shareholders' meeting for 28 September on the capital increase for a maximum of 560 million euro.
GENERALI PAYS CASH IN PORTUGAL
Generals -0,3%. According to the Portuguese newspaper Jornal Economico, Generali Portugal will enter the sale program of the Lion. The sale is expected in October and Liberty, Caravela and Zurich Insurance have already expressed their interest. Even Allianz among the suitors.
Telecom Italia goes up: +0,43% to 0,81 euro after Equita Sim confirmed the buy recommendation and the target price of 1,26 euro on the stock. Regarding the possible use of the golden power, the broker points out that "if Vivendi's failure to notify is recognised, the government could intervene with an administrative fine of up to 1% of the group's revenues and with prescriptions and/or conditions that they can go as far as the obligation to sell Sparkle itself or to evaluate the spin-off of the network”.
FLY DADA, RETURN ON THE MARKET FOR GEOX
Dada +2%, updated the highs from May at the start. Safilo -1%, slips to new five-year lows. Geox -3,4%, fell by 9% in the morning, with relative suspension from trading. There are no news. The operating rooms report "fat fingers".
Elica gained 1,15%%, eliminating the loss since the beginning of the year. The Marche-based company, market leader in the design and production of kitchen hoods, closed the first half with a net profit of 1,2 million euros, down from 2,8 million a year earlier and revenues up by 12,6 % to 242,8 million. The company has sold 100% of the German Exklusiv-Hauben Gutmann to its general manager Manuel Fernandez Salgado for 2,5 million.
