The first consequences of the clash on tariffs are being felt. The aluminum giant Alcoa launched a profit alarm yesterday evening after the closed Stock Exchange: due to the duties on aluminum and the increase in energy costs, the 2018 objectives will not be achieved. The stock lost 5% after the Stock Exchange.
Also in the Beige Book, the report published every six weeks on the state of health of the US economy, the concern of industrialists about the increase in metal and timber prices, to the detriment of the housing market, emerges, as evidenced by the drop in new construction sites.
But these signals are drowning in the face of a positive economic situation: in July the American economy continues to expand, albeit at a "moderate or modest pace", the report points out, adding a new piece to the next increase in US rates, confirmed in the second hearing, this time in Congress, of Fed Chairman Jerome Powell.
The advance of the dollar therefore continues, especially towards the yuan, at its lowest level for a year, and the yen. The euro traded this morning at 1,1650 against the US currency.
Even more significant is the rise in market rates. The two-year T-bond reached 2,624%, the highest since August 2008. This widens the yield gap with respect to German Bunds, never so high in thirty years.
The strong dollar-upper US quarterly mix supported the markets' rally. So far, however, the maximum fine imposed by the EU on Google has not weighed much.
YUAN AT LOW, JAPAN REDUCES STOCK PURCHASES
The Japanese Stock Exchange is about to close higher for the fifth consecutive day, the longest positive streak since April. The yen strengthened to 112,7 against the dollar, also following the central bank's decision to reduce bond purchases. Data released tonight on Japan's trade balance signal a 67% growth in the surplus.
China's stock markets are down slightly: the yuan weakens for the third consecutive day, to 6,77 against the dollar: tonight Beijing's central bank adjusted the yuan fluctuation band downwards.
S&P AT THE HIGHEST. FLY THE BUFFETT COMPANY
New records in the air on Wall Street. The S&P 500 index (+0,22%) marks a five-month high, while the Dow Jones closed higher for the fifth time in a row. The Nasdaq moved little (-0,01%).
Amazon has touched a market capitalization over 900 billion dollars for the first time. It advances after the Morgan Stanley accounts (+2,8%). Warren Buffett's holding, Berkshire Hathaway, climbs 5,3% after lifting the ban on buybacks.
ALPHABET APPEALS AGAINST THE MAXI-FINE
Little move in contrast to Alphabet, the parent company of Google which is already reacting to the 4,3 billion fine imposed by the European Union. An appeal to the European Court of Justice is not excluded. The EU antitrust yesterday imposed a record 4,34 billion euros ($5,04 billion) fine against the search engine for using its Android operating system to impose illegal restrictions on smartphone makers and service operators. mobile network. The European Commission has ordered Google to put an end to the illegal conduct within 90 days: otherwise it faces further fines of up to 5% of Alphabet's worldwide average daily turnover.
DOUBLE PROMOTION FOR SAIPEM
Oil moved little, at 72,80 dollars in the Brent version after the increase in US stocks. Saipem shone in Piazza Affari, up by more than one point to 4,06 euros. The title was backed by a double promotion. Société Générale strengthened the Buy rating, raising the target price to 5,25 euros from 3,89 euros. JP Morgan strengthened the Overweight recommendation, bringing the target price to 4,50 euros from 4,30 euros.
MILAN IN RED, ZURICH AT THE TOP
Stock exchanges moved little today in Europe, with widespread but limited increases for the main EU lists and slightly higher gains for Zurich (+1,29%). Swatch (-0,4%) does not participate in the Swiss price list, although it recorded record sales (+15%) and boasts an excellent performance (+18,6%) since the beginning of the year.
Milan is lagging behind, the only one in the red among the indexes of the Old Continent, which closed a session with a -0,03% to 21.972 points without relevant cues: 1,7 billion the value of trades.
Another black smoke for the appointments to the Cassa Depositi e Prestiti. "The problem is not whether or not there are differences on the appointments, they are important appointments - said Prime Minister Giuseppe Conte - because the Deposits and Loans Fund is a key instrument as regards national policy as well and has strategic importance, therefore it is Obviously we want to think carefully about the appointments and we are thinking about it carefully so as not to make a mistake".
At the top of the lists is Frankfurt (+0,8%) ahead of Paris (+0,46%) and Madrid (+0,29%). London +0,66%. The pound fell against the single currency (0,8919), due to lower-than-expected British inflation.
CONFINDUSTRIA AGAINST THE DIGNITY DECREE
Italy is in the sights of the International Monetary Fund. In view of the next G20, which will be held in Buenos Aires between November 30 and December 1, the Washington institution has published a preparatory document in which some potential risks emerge for some economies, including ours. “Pro-cyclical fiscal stimulus should be avoided – reads the report – in those countries where public finances move on an unsustainable trajectory (see US) or whose position is vulnerable to loss of market confidence (Italy) ”.
The dignity decree "while pursuing shared objectives" makes "the framework of the rules more uncertain and unpredictable" for businesses "by discouraging investment and limiting growth". Thus the CEO of Confindustria Marcella Panucci in Parliament. The reply of the deputy prime minister Luigi Di Maio is over the top but not on the merits: “They are the same ones who cried for catastrophe if the no to the Referendum had won, then we know how it ended. We know how it will end in this case too. We can no longer trust those who try to engage in psychological terrorism to prevent us from changing”.
LCH RAISES THE MARGINS ON ITALIAN STOCKS FROM TODAY
On the debt market, the 2,52-year yield rose to 217.60%, the spread with the Bund rose to 2,26 points (+XNUMX%).
Complicating the day was the news that the London clearing house LCH raised the margins on Italian government bonds, on maturities ranging from 3 months to 10 years and on CCTs, causing a temporary increase in the 2-year bond rate , which reached a maximum of 0,635%, from 0,59% before the news and 0,58% on the eve of the news.
For securities between 1,25 and 2 years, the increase in margins is to 3,00% from 2,40%, for those between 2 and 4,75 years to 4,70% from 3,45%. For Cct it exceeds three percentage points at 5,60%.
STM SUPERSTAR, PIAGGIO FLY
The best stock of the session was Stm (+3,18%) driven by the quarterly results of Asml (+6,1%) and Texas Instruments.
Fiat Chrysler (-0,3%) did not take advantage of the good automotive day, pending an agreement on duties with the USA: Volkswagen +2,2%, Daimler +1,3%, Renault and Psa +1,2, 1,5%. Cnh Industrial rebounds (+8,90% to 10,975 euros) after the drop in the last period: in fact, the stock dropped from 22 euros on May 8,766nd to 17 euros on Tuesday XNUMXth.
Worth noting is Piaggio's exploit: +3,8% to 2,30 euros on the highs of the last four months. The president Roberto Colaninno, and the president of Foton International, Chang Rui, signed in Beijing the technical annexes relating to the contract for the development and construction of a new range of light four-wheel commercial vehicles.
BANCA IFIS GOES SHOPPING
The banking sector slowed down the index: -0,93% in Italy against +0,08% at the European level. Ubi Banca dropped 1,2%, Intesa 0,7%. Unicredit (-1,5%) slips to last place in the Ftse Mib basket.
Banca Ifis goes against the trend (+2,5%). Immediately after the closing of the Stock Exchange, the company announced the purchase, through Ifis Npl, of four portfolios of non-performing loans with a total value of 600 million euros, of which 537 million from UniCredit.
SAFILO AND DE LONGHI FALL, ASTALDI REBOUNDS
Ei Towers closed in parity at 56,8 euros, just below the offer price set at 57 euros per share by F2i and Mediaset – 0,64%. Rai Way rises by 1,2%.
In a nosedive Safilo lost more than four percentage points: Moody's decided to cut the rating to B2 with a negative outlook.
De' Longhi was among the worst performers with a loss of 3,3%. Kepler-Cheuvreux cut the recommendation to Hold da Buy. Target price reduced to 23,50 euros from 29 euros.
Astaldi instead rebounds (+6%) from the lows of the last thirteen years to 1,833 euro: The share has lost 40% from mid-May to today.
Among the positive notes, the rally of Terni Energia (+30%) and Mondo TV (+6,6%), which continues to benefit from the advances on the first half.
