The start of the month promised a flying start, but the balance closed with negative performances for the European stock exchanges. Worst of all was Milan, which fell by 3,3% under the pressure of the endless crisis of the banks. But not all of them: we find banks among the best performers, from Ubi up 23% to Banco Bpm up 14,7%. Now the baton passes to Unicredit (-8%) which today will reveal the offer price of the new shares in the most majestic (and demanding) capital increase ever carried out in Italy. As for Intesa (-1,2%), between Saturday and Sunday it will finalize the offer on Generali (-1,1%), another very hot topic in February.
THE WHITE HOUSE ATTACKS GERMANY: THE EURO RISES
But the big disappointment comes from across the ocean. Wall Street, unlike a year ago, ended the month in positive territory. But the Trump-branded rally is betraying, at least in part, expectations: the euphoria over tax cuts has given way to worries about triumphant protectionism. And the closure of the borders has compromised the honeymoon between a part of Wall Street and the White House.
Yesterday, countries with a positive surplus vis-à-vis the US ended up in the President's sights, accused of "manipulating the exchange rate" (see China and Japan) or of leveraging the weakness of the euro to invade US markets (Germany). The result? The decline of the dollar (-0,84%) against the main currencies, over 1,08 against the euro. Another cold shower on European hopes. The floor today goes to the Fed. But Janet Yellen, unlike the president, shouldn't reserve any surprises.
HONG KONG REOPENS IN RED. THUD OF NINTENDO IN TOKYO
Asian stocks cautiously awaiting the decisions of the Fed. Tokyo, after a negative start, gains 0,3%. Nintendo thud (-3%) after the disappointing sales of the new version of Super Mario. Bad Hong Kong, the first place to reopen its doors after the lunar year holidays: -1%, the most marked drop in the last six weeks. Most of the price lists in the area are still closed for holidays.
BUFFETT INVESTED 12 BILLION AFTER TRUMP'S APPOINTMENT
US markets closed lower for the fourth day in a row: Dow Jones -0,54%, S&P 500 -0,09%. The Nasdaq (+0,02%) is an exception. Warren Buffett has bought $12 billion in shares since Donald Trump was nominated: the Omaha sage has been a Hillary Clinton supporter.
Pfizer gained 1,3% on the day of the presentation of the quarterly data, from which, however, no surprises came. Yesterday Donald Trump told the directors of major pharma companies that he will lower taxes and ease regulation, in exchange he is asking companies to be more transparent with prices.
Weak oil prices: Brent at 55,44 dollars (-14 cents), West Texas at 52,74. US production and inventories continue to grow. In Milan, new decreases for Eni (-1,25%) and Saipem (-2,7%).
THE APPLE CASE RISES TO 246 BILLION, 94% OUTSIDE THE US
General attention was focused on waiting for Apple's accounts, released after the Stock Exchange. Apple did not disappoint: earnings per share hit a new all-time record ($3,36) as did revenues ($78,4 billion in the quarter versus an estimate of $77,38). The stock shot up after the Stock Exchange to 125,02 dollars, an increase of 3,02%.
However, once again, the iPhone pulled the bills. Apple sold 78,3 million iPhone7s for the quarter for revenue of $54,4 billion. Tim Cook said sales were limited by component availability.
“Our outstanding performance enabled a new all-time high in earnings per share, and over $27 billion in operating cash flow,” said CFO Luca Maestri. “We returned nearly $15 billion to investors through buybacks. of shares and dividends in the quarter, bringing the cumulative payments made through our capital return program to more than $200 billion."
Apple's cash has reached the astronomical figure of 246 billion dollars, 94% of which is abroad. Cook said that the company closely follows the evolution of US tax law, without going into further details.
MILAN STILL IN RED, ITALY TOWARDS THE VOTE
Futures suggest a positive start for European lists. It was another heavy session for the Milanese price list. After Monday's declines and a start of bullish trading, it sold off to close at 18.591 points, down 0,9%. Minus signs also for Paris (-0,2%) and Frankfurt (-0,85%), weaker than London (+0,08%) and Madrid (+0,01%).
Piazza Affari notes this morning that Italy is going to vote: the alignment that wants the elections immediately has prevailed and he imposed himself. Yesterday the conference of the House Group Leaders scheduled the arrival of the electoral reform in the classroom for February 27th.
Inflation in the euro area rose to 1,8% yoy in January, the highest level since February 2013. The Italian labor market closed 2016 with a worrying peak in the unemployment rate, which in December revised the threshold of 12%, the maximum for a year and a half.
The BTPs rebound after Black Monday. the yield differential between Btp and Bund on the 10-year segment trades at 184 basis points from 186 at the opening, down from 190 points on the eve. The 2,28-year rate closes at 2,35% from 68% yesterday. The Italy/Spain performance bonus also decreased slightly, falling to 72 points from 5 points on Monday, the highest in XNUMX years.
MUSTIER: “THE ECB IS HAPPY WITH US”
The basket of Italian bankers dropped 2,4% against a more modest -0,9% in the European sector. Punish the titles of the groups that are preparing to launch recapitalizations.
Unicredit closed down again after several ups and downs: -3,9%. The board of directors will today set the price and terms of the increase which will start on 6 February. Yesterday there was the signing of the contract which strictly binds the banks of the guarantee consortium: the one signed on December 22 provided for a milder commitment, possibly revocable. If the market doesn't respond at its best, the credit institutions will have to take charge of the problem, in exchange they will receive commissions in the order of 350 million.
Jean Pierre Mustier said that the non-performing loan plan that his institution will present to the ECB by February 28 is the one already agreed with the European supervisory authorities, and that Frankfurt is "very happy with it, there have been no new requests".
Ubi Banca sold 3,2% pending the capital increase linked to the purchase of the three good banks. The letter did not spare even Banco Bpm (-5,1%).
Understanding -1,2%. According to rumors, between Saturday and Sunday, the bank's board of directors will finalize the offer on Generali (-1,1%).
MORETTI'S SENTENCE HOLDS BACK THE EX FINMECCANICA
Leonardo (-2,3%) accused the news of the seven-year sentence imposed on CEO Mauro Moretti for the Viareggo train disaster (32 dead) in 2009, when he was CEO of the Railways. Last night in a note, the group's board of directors expressed full confidence in the manager. At this point the position of Moretti's company manager is in doubt, even if, since it is a sentence in the first instance, the law does not prevent a second term.
If the proceedings continue at the same speed, it is also possible that it will be prescribed. The Treasury, Leonardo's controlling shareholder, should present the list of candidates for the board of directors around March, the meeting is held in April. Moretti has repeatedly stated that he is willing to remain in his place to complete the restructuring plan.
SALES OF FERRAGAMO START AGAIN
Ferragamo announced the preliminary data for the fourth quarter of 2016 yesterday evening. Revenues rose year-on-year by 3,7%, to 424 million euros, and at constant exchange rates and perimeter the growth is 1,2%, accelerating compared to the first nine months. The third quarter ended with a 6% year-over-year decline.
Telecom Italia +1,8%: Morgan Stanley has raised the target price to 1,15 euro from 1,1 euro and confirms the Overweight rating.
Cnh falls 2,3% after the quarterly. Operating profit came in at $412 million, in line with analyst estimates. Net debt grew to 2,112 billion euros.
Fiat Chrysler+0,7%. Goldman Sachs raised its target to $21,5 from $20,8, confirming the Buy judgment.
