Welcome Warren. For Warren Buffett, an investment of 115 million euros is, to use US jargon, peanuts or a trifle. But the news that the best known and most skilful investor on the planet has decided to head for Italy has epochal value for us. It is also impressive that for the first time in the Bel Paese the wise man from Omaha has chosen an asset from one of our own banking misadventures. Berkshire Hathaway has in fact become the first shareholder of Cattolica Assicurazioni by purchasing 9,047% from the liquidators of Banca Popolare di Vicenza. A good signal while the controversy with the EU Supervisory Authority rages on over the new rules on non-performing loans.
In this regard, Reuter reveals that the NPL measure should be part of a softer-than-expected European guarantee scheme for bank deposits to gain support from Germany: the guarantee scheme, known as Edis, could initially only lend support for deposits of failed banks to then extend in the face of a sufficient reduction of non-performing loans by banks. As usual, the European path is convoluted and almost inscrutable outside the secret rooms. Matteo Renzi judged Frankfurt's plan on NPLs a "suicide" that will cause other banks to go bankrupt.
NINTENDO SUPERSTARS IN TOKYO. RECORD BANKS IN HONG KONG
Taurus gallops, both in America and in Asia. The Hong Kong Stock Exchange has reopened after four days of closure for holidays: the Hang Seng index rises by 0,4% to its highest level since the 2008 crisis. Chinese bank stocks push the stock market up +2% while waiting for Monday to reopen i flying the Dragon Bags after a week's holiday.
Seoul and Sydney also rose, both +0,9%. The Tokyo Stock Exchange +0,4% is starting to close the week with an increase of 1,6%. Highlights Nintendo +3%: Monthly sales of the Switch console have risen to 2 million units per month. Mumbai's BSE Sensex index rises by 0,3.
The US stock exchanges churn out historical records over and over again. The S&P 500 index +0,56% touched its historic record for the sixth consecutive time: it is the longest consecutive streak since 1997. The Dow Jones +0,56% and the Nasdaq +0,78% are also on the rise. The Russell 2000, the SME index, was also positive, +0,3%.
US LABOR MARKET DATA TODAY, NETFLIX BOOM
?The yield on the 10-year Treasury Bill rose to 2,35% from 2,33%. Yesterday the governor of the Federal Reserve of San Francisco, John Williams, gave a rise in the cost of money before the end of the year as probable, given the current economic push. He likes the banks the confirmation of Randall Quarles as Fed head for the sector. Quarles is in favor of speeding up credit deregulation.
The dollar appreciated, pushing the euro-dollar exchange rate to its lowest level since July at 1,170. This morning the euro-dollar cross is 1,1686.
The economy continues to pull off, as yesterday's stronger-than-expected rebound in capital goods showed. Employment data expected at 14,30 pm (Italian time) is expected today. Among the companies, the advance of Netflix stands out +5,4% which announced an increase in monthly subscription prices (from 1 to 2 dollars).
PUTIN GOES TO ARABIA. IN RALLY SAIPEM AND SARAS
Brent oil is flat at $57, up from +2,1% yesterday. In the Gulf of Mexico, the arrival of hurricane Nate has prompted some oil companies to evacuate plants and platforms. King Salman's historic visit to Moscow has been underway since yesterday evening. In the joint press conference Vladimir Putin announced that he will visit Saudi Arabia. At Piazza Affari, Saipem took off +2,6%. Eni +1%. Saras rises by 1,98%.
CATALAN BANKS CHOOSE MADRID, THE BOLSA RECOVERS
The rebound of the Madrid Stock Exchange together with the push coming from Wall Street has restored good spirits to the markets of the Old Continent. Tonight, with the Stock Market closed, the update of Moody's Italy rating will be announced. The Milan Stock Exchange picked up speed in the afternoon, as signals were received from Spain that were deemed comforting. Piazza Affari thus closed on the highs of the session: Ftse Mib index +0,4% at 22.543 points.
More modest was the gain of Paris +0,3%, Flat Frankfurt -0,02%, in line with the fresh historical record. London's FTSE 100 index rose by 0,3%, while the pound reached its sixth consecutive day of decline against the euro. Theresa May's unfortunate speech yesterday at the Conservative Party conference was not only a media disaster but, according to the Telegraph, it prompted around 2,9 Conservative MPs to call for her resignation. At the center of attention was the robust rebound of the Madrid Bolsa +XNUMX% with strong acceleration in the final stages.
The Constitutional Court of Spain has suspended the session of the Catalan Parliament on Monday 9 October, convened to examine the outcome of the referendum and possibly declare the independence of Catalonia on the appeal of the Socialist Party of Catalonia, which opposes secession.
Banco de Sabadell, one of the main Catalan banks, has meanwhile called a meeting to move its headquarters to Alicante, in Castile, to avert the risks associated with a possible secession, first of all access to the ECB system. Other major Barcelona-based banks are poised to follow suit.
Meanwhile, the euro slips on the euro to levels not seen since the end of July, below 1,17. The minutes of the last ECB board meeting show that the participating bankers spoke of the possibility of modifying the purchase plan envisaged by the QE. Among the scenarios taken into consideration, that of a longer horizon of purchases with a greater reduction in the monthly rate (now equal to 60 billion euro/month) and that of a shorter extension with more consistent monthly purchases.
RECOVER BTP AND BONOS. EURO BELOW 1,17 ON THE DOLLAR
The Italian bond market rebounds on voices of dissent among Catalan separatist leaders. Around 17,20, the Italian ten-year rate fell to 2,201% from 2,231% on Wednesday, when it had risen to 2,263%, the highest since mid-July. The spread with the similar maturity of the Bund narrowed to 175 basis points against 183 on the previous day, the highest level since the beginning of June. The spread between Spanish and German paper in the 10-year section also dropped sharply, reaching 125 points (from 133). base from 133 points on the eve.
EXOR, JOHN ELKAN CHARMS INVESTORS
In Piazza Affari, Exor rose to prominence +4,1% to 55,85 euros) on Investor Day: according to an expert, the market was very pleased with the presentation. John Elkann, president and CEO of the holding, said that Partner Re, the company acquired in the spring of 2016, will close the year with a profit despite a difficult season punctuated by hurricanes and other atmospheric events that have mainly affected North America. Good news also on the future role of Sergio Marchionne, who will maintain his commitment to the holding company once he leaves his operating positions at Fiat Chrysler. Purchases of treasury shares are not excluded, unless new investments are identified.
Fiat Chrysler slows down -0,7%.; the company has communicated to the trade union organizations a new layoff period for workers on the Maserati Levante line and in the press department of the Mirafiori plant in Turin. In great evidence Pirelli + 3,7% at 6,71 euros which is reported above the placement price of 6,5 euros.
BANKS IN RECOVERY, HOLD THE BIG
The banking sector closed a session shaken by strong selling in the first part of the day just above parity. The new ECB rules on NPLs hold the ground. The losses of Ubi Banca -2%, followed by Bper -1,7% are still heavy. Instead, Banco Bpm recovered in the final, reducing the drop to -0,2%. Positive results for Intesa +0,2% and Unicredit +0,46%. Worth noting is the collapse of Creval – 10,6% after the downgrade by Moody's and the decision by Intermonte to reduce the recommendation on the stock to 'neutral'.
TELECOM, ENEL AND ATLANTIA START AGAIN SPAIN IS NOT SUFFERING
Telecom Italia achieved an increase of 1,05% to 0,769 euros with substantial volumes (equal to 0,735% of the capital) on the day in which the Guardia d Finanza, on a mission to Paris, searched the headquarters of Vivendi in the scope of the insider trading investigation opened after Mediaset's accusations. The executive chairman of Telecom Italia, Arnaud de Puyfontaine, declared at the EY Capri digital summit 2007 that he "has no prejudices about anything, not even the unbundling of the network". But a spokesman for the group? He later clarified that the separation of the network? it's not on the agenda.
In the main basket to be reported again:
Positive day for utilities. Enel rises +1,8%, impervious to the Spanish events. Snam +1,5%. The exception is A2A -1%. The company is ready to raise 40% of Acsm Agam, the Brianza utility, from the current 25%. Atlantic +1,8%. Setback in luxury for Salvatore?Ferragamo?-2%?and?Yoox Net a Porter -1,4%. Tod's -0,09% after a positive start. In a few days the title received three rejections. Yesterday RBC reduced the target price to 52 euros from 53 euros, confirming the Underperform recommendation. A few days ago Kepler reduced the recommendation to Reduce (lighten) from Hold. Target down to 54 euros from 58 euros. HSBC has decided to cut the target price to €58 from €60, confirming the Hold judgment.
FILA SHINES, MADE IN ITALY EXCELLENCE
In the rest of the list:
Fila shines +6,10% at 20 euros, new all-time record. The pocket multinational, leader in the color sector, has been included among the 22 companies selected to be part of the new Italian Listed Brands index, which collects the excellence of Made in Italy. The new list will include, among others, Ferrari, Brembo, Ferragamo, Technogym and the newly listed Pirelli. Leap of ??Rai Way?+8,23% to 5 euro. Banca Imi confirmed the add recommendation and the target price at 5,1 euro, placing the emphasis on the possible sale of Persidera, the Telecom multiplex company. Experts think the deal could trigger industry consolidation.
