D-day has arrived US tax reform. Tonight Congress will vote on the historic corporate tax cut (rate down from 35% to 2%) which should give wings to American stocks and lay the foundations for a season of growing dividends and buybacks, sufficient to support Wall Stret after a record year. Given the premises, the climate of euphoria on the stock markets is not surprising, culminating yesterday, during the session, in the leap of the Nasdaq above 7.000 to then close at 6.994m76. And there are those who bet that within the year the Dow Jones, yesterday at 24.792,2 points, could break the barrier of 25 points.
APPLE ABOVE 900 BILLION IN VALUE
Expectations are fueled by Apple's new all-time record (+2,45%) for a market capitalization of more than $905 billion. No less important, on a psychological level, is the leap of Warreb Buffett's company, Berkshire Hathaway, beyond the $300.000 barrier (+1,04%).
In short, Christmas presents for the stock markets are wasted, as Donald Trump continues to underline, whose main ally is Wall Street. But data from the real economy also contributes to the increase: the index on home builders' expectations rose to 74 in December, never so high for 18 years.
WILLIAMS (FED): ECONOMY REMAINS OK
Then, the incoming message from the Federal Reserve is explicit. John Williams, chairman of the San Francisco Fed and a voting member of the central bank's select committee, stressed that the business cycle is in good shape, regardless of the forthcoming tax reform.
CHINA ADVANCES, SIDNEY AT THE HIGHEST FOR 10 YEARS
Stock Market forecast reports stable on all markets. Hong Kong gains 0,8%, the same positive change for the CSI 300 index of the Shanghai and Shenzhen stock exchanges. In the South East of the world, the Australian Stock Exchange is at its highest level in the last ten years: S&P/AS200 index +0,7%. However, the stock markets of Japan and South Korea do not participate in the upward movement, positive only at the start of the session, at the end, the Nikkei index of Tokyo is unchanged, the Kospi index of Seoul loses 0,3%.
DOW JONES CELEBRATES RECORD NUMBER 70
On Wall Street, the Dow Jones (+0,57%) achieved the record number 70 of 2017. The S&P index closed at +0,54%, Nasdaq +0,84%. The performance of Twitter stands out: +11% after the promotion of JP Morgan.
In the last few hours, there has been a stir on bonds: the US yield curve has steepened, after months of progressive and relentless flattening. The yield on the 2,39-year Treasury Bill rose to XNUMX%, in the high end of the range within which it has been moving for some months now.
The two-year to 56-year spread, an indicator of curve flattening, widened to 51 basis points, from XNUMX basis points at the close.
Brent oil moved little at 63,5 dollars a barrel, closing yesterday at 63,4 dollars (+0,3%).
BUSINESS PLACE +1,34%, AT THE TOP TOGETHER WITH FRANKFURT
The push coming from the USA has also affected European lists, which are showing a strong recovery. Milan has recovered in a single session a large part of the sales accused last week. The Ftse Mib index recorded an increase of 1,34% to 22 points. Since the beginning of 390, the Italian Stock Exchange has gained 2017% like the Frankfurt Dax. The global Eurostoxx index gains 16,5%.
Piazza Affari is set to close 2017 as the best market in Europe in terms of performance. Pirelli. This was underlined by the CEO of Borsa Italiana Raffaele Jerusalmi who also showed optimism for 2018, which "promises to be just as positive".
THE GIANT OF CYBERSECURITY IS BORN IN PARIS
The leader was yesterday the Frankfurt Dax (+1,69%). Chancellor Angela Merkel hopes to conclude exploratory talks with the SPD on forming a new government by mid-January so that both parties can launch official negotiations to renew their alliance.
Paris is also on the rise. Thales (+8,4%) yesterday announced the purchase of Gemalto (+4,8%) for 4,5 billion euros. This is how the leading cybersecurity group was born in France. Madrid gains 09%. Outside the Eurozone London and Zurich +0,6%.
EU INFLATION RISES, BUT NOT ITALIAN INFLATION
On the macroeconomic front, the euro zone's annual inflation rate stood at 1,5% in November versus 1,4% in October, according to consolidated Eurostat data. The European Union of 28 instead recorded a price increase of 1,8% against 1,17% in October. Italy remained below the Eurozone average, with an inflation rate of 1,1%.
The upward momentum in Italian stocks triggered last week by pre-election worries has weakened. The yield differential between the BTP and the Bund on the 10-year stretch stood at 150 basis points from 152 at the end of Friday's session.
The 1,80-year rate fell to 1,81% from 2018% at the last closing and the highest since the end of November. Today the Treasury will proceed with a new buyback on five government bonds between Btp, Ccteu and Ctz with maturities between June 2020 and June XNUMX. The buyback will be conducted using the cash surpluses of the availability account.
FITCH PUT PORTUGUESE BONDS INTO ORBIT
The performance of Portuguese paper should be noted, which benefited from the upgrade of the rating by Fitch to 'BBB' from 'BB+', bringing the country back to 'investment grade'. Only Moody's maintains a below investment grade rating.
CANNATA TOWARDS EXIT AFTER 17 YEARS
Maria Cannata is preparing to leave the directorate of the Treasury for debt management. At the beginning of February 2018, in fact, you will not renew the office you held since December 2000. You will be succeeded by Davide Iacovoni, 48, who has been your deputy for some time.
SAIPEM LEADS THE UPWARD RACE
Confirming the optimism of the CEO of Piazza Affari yesterday the race for blue chips took off, starting with industrialists, energy and utilities. Yesterday's top stock was Saipem (+4,8%) ahead of Tenaris (+2,3%). Eni rose by 1%. The company has resumed oil production at the Norwegian Arctic Goliat field after an interruption of more than two months. A Memorandum of Understanding was signed with Sonatrach for the development of the partnership between the two companies in the renewable energy sector.
SUPERSTAR UTILITY: BARCLAY'S AWARDS ENEL
Among the utilities, Enel (+2%) was confirmed as one of Barclays' top picks.
Snam also did well (+2%). Greece's privatization agency (Hradf) will move the deadline for submitting binding offers for 66% of Desfa, the country's natural gas network operator, to February. Snam, in a consortium with Enagas, Fluxys and Gasunie, received the green light in September for the due diligence before submitting a binding offer. Triad +1,5%.
Fly Ternienergia, up by 15,59% after announcing that it had received a binding offer from a leading international investment operator for the purchase of photovoltaic assets for a maximum total equity value of 16,6 million euros.
FITCH PROMOTES FCA. JUVENTUS +3,7%
They celebrate the blue chips of the industry. In great evidence Leonardo (+3%) rewarded yesterday in Parliament with the national prize for innovation. Fiat Chrysler advances after the promotion of Fitch which announced that it has raised the company's long-term debt rating from “BB-” to “BB” and has maintained the positive outlook. The short-term rating is confirmed at “B”. The Chinese TUS International, according to rumors, is interested in the subsidiaries Magneti Marelli and Comau: FCA has long announced its intention to spin off the two subsidiaries.
In the Agnelli galaxy, Cnh (+2,81%) and Exor (+2,08%) also rose. Even more brilliant Juventus (+3,69%). The FIGC federal court of appeal, in partial acceptance of the appeals proposed by the federal prosecutor and by Juventus with reference to the president Andrea Agnelli, has decided to let his inhibition expire today.
In contrast Pirelli (-0,91%) in the first day in the Ftse Mib basket.
THE PATENT BOX GIVES MONCLER WINGS
In brilliant luxury Moncler: +2,27% to 25,57 euros, new all-time record. The luxury group has signed an agreement with the Revenue Agency to access the tax relief of the 'patent box' and at the same time resolved the tax pending relating to 'transfer pricing' towards foreign subsidiaries by paying 24,5 million.
Salvatore Ferragamo partially recovers, +1,7% % after the collapse of more than 6% recorded on Friday in the wake of an unexpected alarm on the 2018 accounts and on the medium-term targets. Luxottica sales (+1,1%).
MEDIASET BRAKES, IGD LANDSLIDE
Bad Mediaset, which loses 2,38% : today the company of the Biscione and Vivendo will ask for the hearing to be postponed in view of a possible agreement between the parties.
Telecom increased slightly (+0,14%): the company reached an agreement on investments in ultra-broadband in some gray areas. Banca Imi confirmed the buy recommendation on the stock and the target price at 1,11 euro.
Among the stocks in the red stands out Igd (-6,33%), which has signed a preliminary agreement for the acquisition of a portfolio consisting of four shopping malls and a retail park for a total investment of 200 million. To finance the acquisition, the group intends to proceed with a capital increase for a maximum value of 150 million.
THE BANKS ALSO RECOVER. CREVAL ASSEMBLY TODAY
Lastly, the banking sector was also a day of recovery thanks to the recovery in the afternoon. Overall, the Italian sector index rose by 1%, in line with the European basket (+1,1%).
Banca Monte Paschi goes up (+3,3%). The meeting elected Stefania Bariatti new president with over 75% of the votes. Bariatti has been indicated by the MEF to replace Alessandro Falciai. Antonino Turicchi was elected to the vice presidency, always indicated by the Treasury. In October, the bank made recoveries of around 700 million on the securitized bad loans portfolio.
Banca Carige closed in parity, after terminating early the offer of the rights that remained unexercised for the capital increase in option up to 500 million.
Creval still falls (-3,6%) on the eve of the shareholders' meeting on the maxi capital increase of 700 million, equal to five times the current capitalisation.
The major banks were positive: Unicredit +1,73%, Intesa +0,57%, Mediobanca +0,53%, Ubi +1,68%. In red only Banco Bpm (-0,71%).
