The New York Times has targeted Donald Trump. This is certainly nothing new, but this time Donald Trump Junior has been targeted by the newspaper and by the president's enemies, accused of having obtained "revelations" about Hillary Clinton from Russian lawyers close to the Kremlin on the eve of the elections. Trump senior, now accustomed to living at home under friendly fire, replies with the most significant appointment made so far in the field of economic governance: Randall Qualis, a former collaborator of George Bush, will join the Fed as supervisor of the banks. It is the first step in revising the rules of the sector undergoing a profound transformation.
Bank of America recently opened three branches without a single human employee. The customer can carry out each operation electronically. For advisory and savings management services, a click will suffice to get in touch with a robot or, optionally, with a consultant connected remotely. The digital economy thus takes a new step towards the elimination of white-collar workers precisely on the same day in which in Italy, thanks to the Anima-Posta-Cdp project, the reorganization of the asset management industry is accelerating.
ASIA AWAITS YELLEN. FLY THE MEXICAN PESO
Markets quiet as we await Congressional testimony from Janet Yellen tomorrow and Thursday. The markets are betting on the confirmation of the Fed's budget cuts starting in September. The dollar thus moves higher against the yen and against the euro (1,1393). The Canadian dollar is weak on the eve of the likely rate hike.
Continue racing the Mexican peso. The currency, which should have been the first victim of Donald Trump's trade policy, is gaining 15,3% on the US currency this year. There is room for more gains for Goldman Sachs.
The Brazilian Stock Exchange rose by 1,1%. This week the debate on the possible trial of the President of the Republic Michel Temer begins.
The strength of the US currency gives the Asian price lists a boost. The Tokyo Stock Exchange advanced by 0,57%. The polls indicate a sharp decline in the popularity of Prime Minister Shinzo Abe, appreciated by only 36% of voters (but strongly criticized by 52%). Brilliant Hong Kong (+1,6%) driven by mergers and acquisitions. New record for Mumbai (+0,3%).
TODAY AMAZON'S PRIME DAY: THE COMPETITORS SHAKE
Wall Street is cautious on the eve of the Yelln hearings and the start of the quarterly season: the data of JP Morgan, Wells Fargo and Citigroup will be released on Thursday evening. The Dow Jones (-0,03%) and S&P500 (+0,09%) were almost unchanged. The Nasdaq (+0,38%) was much more lively, on the eve of Prime Day in Amazon (+1,8%).
Shoot at 9 (New York time) on Prime Day, 30 hours of offers and discounts from the e-commerce giant. Jeff Bezos does not intend to take prisoners: the next victim could be Best Buy, -6,3% after the launch of a Geek Squad competitor, the assistance service for the "smart home" guaranteed by the seller of electronic products.
Snap's descent continues (-1,1%) for the first time below 17 dollars, the price reached in the March IPO. Abercrombie shares plummet (-21%) after the failure of talks with potential buyers of the clothing chain.
OIL IN SWING. TOWARDS THE ROOF FOR LIBYA
Day of ups and downs for oil. WTI and Brent closed higher at 44,3 and 46,9 dollars a barrel. The OPEC producing countries plus Russia will meet in St. Petersburg on 24 July to discuss the situation of the energy markets. It is possible that Nigeria and Libya will be asked to join the crude oil production moderation pact.
In Piazza Affari Eni advances by 0,3% on the day of a serious mourning for the sector: Leonardo Maugeri has disappeared, 53, one of the world's leading experts on oil and energy investments. In Eni until 2010, he was currently a professor at Harvard. Saipem goes up by 2%, Tenaris +1,3%.
MILAN FORMAT FERRARI IN POLE POSITION
The slight decline in the euro and less pressure on the government side favored the rise in European equities. A positive opening is also expected this morning. Thanks also to Ferrari's sprint, Piazza Affari takes pole position at the end of the first session of the week. The Ftse Mib index rises by 0,84%. Positive ground for the other lists of the Old Continent: London +0,3%, Frankfurt +0,5%, Paris +0,5%, Madrid +0,3%.
THE RATES ARE BREAKING. 7,25 BILLION BTP AT AUCTION ON THURSDAY
Market recovering after the generalized rise in rates recorded last week on signs of an imminent reduction of the ECB monetary stimulus. On the bond market, the 10-year BTP was traded at a yield of 2,27% (from 2,33% on Friday). The Bund was also down slightly, at 0,54% (from 0,57% on Friday). The spread between Italian and German ten-year yields fluctuated between 179 basis points and 174 basis points in the session, after closing the week, last Friday, at 177 basis points.
In the evening, the Ministry of the Economy announced the details of the medium-long term auctions scheduled for Thursday 13 July: between 5,75 and 7,25 billion in 3, 7 and 15-year BTPs and one extra-long BTP will be offered. a thirty-year loan with a residual life of 20 years February 2037 coupon 4%. Tomorrow, instead, 6,75 billion annual BOTs will be auctioned against 6,5 billion due.
The confrontation between hawks and doves continues ahead of the ECB meeting on the 20th. ECB executive committee member Peter Praet, a close ally of Mario Draghi, stressed that the eurozone needs an accommodative monetary policy for a period of time prolonged and that the change of tone was only a subtle modification to reflect better conditions for growth, while instead inflation is still far from the target.
ITALGAS LEADS THE UTILITIES. ENERGY MAKES BUFFETT AND SINGER quarrel
Utilities fever is exploding around the markets, also in view of a season full of M&As. The fuse on the US market was lit by two legends of price lists: Warren Buffett and Paul Singer. The two compete over Onorro, the Texas utility (worth 18 billion) being auctioned off due to the insolvency of the parent company. Buffett seemed one step away from the deal but Singer, who raked in, as is his style, a good portion of the debt ($10 million), got in the way.
Even in Europe, according to Fortum's analysis, the sector promises great satisfaction. The European Stoxx for the sector is up 0,7%, driven by Italian stocks: Enel +2%, Snam +1,6%, Terna +1%. A2A closes, +0,9% driven by the incoming offers for the subsidiary in Montenegro. However, the leading stock is Italgas (+3,2%), awaiting news on the outcome of the tender for the Italian assets of Gas Natural.
BANKS, THE EUROGROUP GIVES THE OKAY. PADOAN ASKS FOR TRUST IN THE DECREE
The exam by the Eurogroup on the rescue of the Veneto banks and Monte Paschi has been passed. German Finance Minister Wolfgang Schaeuble said that "Italy has done very well in a difficult situation and I think it is a good basis for us to continue in our work". Equally positive was the opinion of EU Commissioner Pierre Moscovici: “The decisions taken for the two Veneto banks have put an end to the uncertainty and this is good news for the Italian economy. Furthermore, these were decisions that followed the rules of the banking union, which proved to be effective and intelligent: the current common framework has allowed us to take quick decisions in the interest of general financial stability while avoiding negative effects on the economy of some regions". Meanwhile, the government has announced that this morning it will ask for confidence in the decree.
A NEW HUB IS BORN: MANAGEMENT IS INFLAMMATORY
Meanwhile, in Piazza Affari the sector index scored a new positive session: +0,4%, against +0,1% at the European level. Unicredit (+0,11%) slows down in the final after having scored new highs from April 2016 at 17,75 euros in the morning (closing at 17,52). The trend weakens in the final stages. Other securities include Intesa (+0,4%) and Ubi (+0,2%). Carige runs (+3,6%) on the eve of today's board meeting.
Spotlight on Banco Bpm (+1,1%) in view of the sale, for 500 million, of Aletti Gestielle to Ania holding, which achieved an increase of 6,6%, reaching the highest since 2016 at 6,91 EUR. The operation is part of the project to establish a new strong hub in asset management which will also include the management of Poste Italiane and in which Cdp will play a role. The air of reorganization in asset management involves the rest of the sector, already supported by the data for the month.
Banca Mediolanum is up 2%: net funding in June was 308 million euro, while since the beginning of the year it stands at 2,3 billion. Banca Generali advances by 1,3%. Azimut +1%: net inflows in June were positive for 557 million euros, those in the first half of the year amounted to 3,4 billion. FinecoBank +0,4%: net inflows in June amounted to 456 million, of which 296 million under management.
Weak insurance companies. Generali (-0,3%) stipulated a reinsurance contract to cover for a period of four years, possible losses due to storms and floods in Europe and earthquakes in Italy. The operation, for an amount of 200 million, was underwritten by the market. Unipol -0,1%: Moody's placed the ratings of Unipol Banca under observation for a possible upgrade on the prospect of a significant reduction in credit problems with a limited impact on capital.
ACCELERATE THE AUTOMOTIVE. LANDI RENZO GOES INTO ORBIT
Another growing sector is the automotive industry, driven by the performance of Ferrari (+3,3%) also thanks to Sebastian Vettel's second place in the Austrian GP, who thus consolidated his leadership in the world championship standings. Positive day also for Cnh Industrial (+2,6%) and Fiat Chrysler (+1,4%). In the meantime, the rally of Landi Renzo (+13%) does not stop. Stm also shines in the industrial sector (+2,2%). Josh Spencer, fund manager of T. Rowe Price Funds Sicav Global, believes that, in a scenario of global economic weakness, the technology sector is an oasis of growth, regardless of the macroeconomic or political environment.
SALES ON TELECOM. THE MARKET "DEFENDS" CATTANEO
Among the negative notes, the shower of sales on Telecom Italia (-1,8%) on a day in which the other securities of the sector closed in Europe in positive territory. This is the effect on the market of Bloomberg's revelations, which spoke of a possible change at the top for contrasts between Vivendi, number one shareholder, and CEO Flavio Cattaneo. At issue is the hard line adopted by Cattaneo towards the government on strategy in areas of market failure. The news was denied by all those involved (including Cattaneo) but it left its mark. According to Bloomberg, Vivendi is considering appointing Amos Genish, who in the past stood out in Brazil as manager of GVT and Telefonica Brazil, at the helm. Telecom's Board of Directors, which met last Friday, meanwhile took time on the sale of 70% of Persidera, as requested by the regulatory authorities. Gedi lost out (-4%), shareholder with 30%.
YOOX SUFFERS, GIGLIO GROUP FLOWERS
Contrasted performance in the luxury sector: Yoox falls (-3,3%), Moncler advances (+2,5%). Luxottica closed at -0,5%: Kepler Chevreux lowered the target price to 59 euros from 60 euros, confirmed the Buy opinion. Ferragamo +0,2%: Morgan Stanley cut the target price to 24 euros from 26 euros, confirming the Equal Weight opinion. Tod's -0,7%.
Among the companies with smaller capitalization, Giglio Group stands out (+5,2%) on which Intermonte, in a study dated 7 July, raised the target price and confirmed the "buy" opinion.
