The news of the death of Dr. Li Wenliang, 34, the first to sound the alarm on the coronavirus unheeded (and punished), has curbed the euphoria of Asian financial markets. Thus Tokyo (-0,7%), the Korean Kospi (-0,6%) and the Chinese lists close in the red: Hong Kong -0,6% and Shanghai -0,1%, the only market not to have recovered entirely the losses accused on Monday when the lists reopened. The yuan, which had risen in the last three days, is once again weakening against the dollar, at 6,98. The yen, on the other hand, rose to 109,90 from 109,99 yesterday. So far the virus has killed 636 people while the infected have risen to 31.161 in China alone.
AN FCA FACTORY RISKS VIRUS STOP
Meanwhile, the consequences of the long stop in China's activity, the "factory of the world", are beginning to make themselves felt. Yesterday Mike Manley, CEO of Fiat Chrysler, said that one of the group's European plants is in danger of shutting down due to a lack of components.
But the emergency didn't stop the Bull from setting new, extraordinary records both in the USA and in Europe.
US EMPLOYMENT DATA TODAY, TWITTER SUPERSTAR (+15%)
Wall Street set new records for the fourth day in a row: Dow Jones and S&P 500 both up 0,3%, Nasdaq up 0,67%. The celebrations will be supported today by US employment data, due out at 14.30 pm, which could provide new fuel for the markets to rise. In January, the change in wage earners, excluding the agricultural sector, should be positive by 165.000 units, from 145.000 in December. Hourly wages should have risen 0,3% month over month.
Dallas Fed chairman Robert Kaplan said the macroeconomic backdrop is such that the central bank is unlikely to change course.
Fly Twitter (+15%). Donald Trump's favorite social media, fresh from the "best week of his presidency" (Financial Times opinion), has scored more than a billion dollars in revenues for the first time in a quarter.
ELLIOTT JOINS SOFTBANK, BOUNCE FOR OIL
Elliott management, the fund that owns AC Milan, has bought a 2,5% stake in Softbank, the giant owned by Masayoshi Son.
Brent oil is up 0,3% to 55,1 dollars a barrel, from -0,6% yesterday. Barring sensational recoveries in the course of the next few hours, the week should close downwards: it would be the fifth with a minus sign.
Yesterday OPEC consultants and technicians recommended a temporary reduction in production to the members of the enlarged cartel: the alignment led by Saudi Arabia would be inclined to accept the indication, while Russia is holding back and asking for time to see how the health situation in China.
Saipem has been awarded some new contracts in various countries of the world for a total value of over 500 million dollars.
OPENING THIS MORNING JUST BELOW PARITY
Euro dollar barely moved at 1,098.
Futures on European stock exchanges anticipate a start just below parity. Milan restarts from the highs of the last 21 months. The other stock exchanges also closed on positive ground, despite Germany's partial misstep: industrial orders recorded a surprise drop in December linked to the weakness of demand from other countries in the euro area: -2,1% .
LAGARDE WARNS EUROPE
But the situation has changed since then, warned Christine Lagarde: "While uncertainties relating to the global economy remain high, those related to trade tensions between the US and China are declining," Lagarde said speaking to a committee of the European Parliament. But she added that "some risks are still present, while others - such as the uncertainty related to the impact of the coronavirus - represent new sources of concern".
MILAN RECORD, DEUTSCHE BANK THROUGH THE STARS
The quarterly reports gave a boost to the Milan price list: +1,05% to 24.490 points, the best European market.
The other markets were positive but less vigorous: Madrid +0,87%; London +0,32%.
Paris +0,88%: SocGen is running (+1%), which in the fourth quarter recorded a net profit of 654 million euros (-4,6%), with an intermediation margin growing to 6,2 billion ( +4,8%).
In Frankfurt (+0,69%) Deutsche Bank took off (+12,48%), supported by the purchases of the US manager Capital Group.
BONDS IN BRAKING, GREEK STOCKS BOOM
Moderate profit-taking is underway in the bond world. 0,35-year Bund yield to -0,44% from -XNUMX%. The Italian secondary outperformed the euro bonds and ended the session with stable returns, in a market penalized by the return of risk appetite.
The reference ten-year BTP rate is unchanged compared to the end of yesterday's session at 0,97%. The Greek 10-year rate went against the trend, reaching a new record low of 1,143%.
SUPERSTAR BANKS. RECORD COUPON FOR UNICREDIT (+8,15%)
Banking sector in great evidence. The FTSE index of Italian banks accelerates upwards by +3,8% and reaches its highest level since September 2018 thanks also to the quarterly above Unicredit's expectations (+8,15%). For 2020, revenues of €18,2 billion are expected for the bank, with underlying net profit of €4,3 billion and ROE of 8%. A 500 million euro buyback is planned. The dividend of €0,63 per share proposed for 2019 is expected to be paid in April 2020. Last year the dividend was €0,27. Credit Suisse reiterated the outperform recommendation and the target price of 14,8 euros on the stock, while Goldman Sachs confirmed the bank in its Conviction List Buy after the conference call.
IN FLIGHT BPER AND BPM, ONLY MEDIOBANCA BRAKS
Bper Banca (+3%) also stood out after the accounts: Kepler Cheuvreux raised the target price from 4,4 to 4,9 euros, confirming the buy recommendation after the 2019 accounts. Banco Bpm also rallied (+ 4,3%). Creval advances by 7%.
Mediobanca went against the trend (-1,59%), even though it beat consensus expectations both for the quarter and for the second half of the year.
On the other hand, Generali rose (+1,3%), of which Piazzetta Cuccia is one of the reference shareholders.
AMERICA PUSHES FIAT CHRYSLER'S PROFITS
Sparkling after the accounts, Fiat Chrysler closes at +0,81% on the day of the quarterly. The data signals adjusted operating profit of €2,1 billion, up 16% year-over-year and in line with consensus expectations. The margin is 7,1%. Industrial free cash flow of €1,5 billion. Almost all of the result comes from North America thanks to the success of the pick ups.
The automotive group closed 2019 with 6,7 billion euros of adjusted operating profit, +6% year on year, with a margin of 6,2% (+10 basis points). The company confirms the 2020 targets provided in October. In line with the roadmap for the merger with PSA. Ebit (operating profit) exceeding seven billion euros. Industrial free cash flow exceeding two billion. Ferraris -1,1%. Exor+2,5%.
ENEL, REVENUES AND MARGINS GROW
Enel's accounts were also released this morning, +0,74% yesterday. Revenues amounted to 80,3 billion euros, an increase of 4,6 billion euros (+6,1%) compared to the 75,7 billion euros achieved in 2018. Ordinary EBITDA amounted to 17,9 billion euro, up 10,5% compared to the 16,2 billion euro of 2018. Ebitda (gross operating margin), which includes the effects of extraordinary transactions, amounted to 17,7 billion euro (16,3 billion euros in 2018, +8,6%) and presents a positive trend, substantially in line with that of ordinary EBITDA. Net financial debt at the end of 2019 amounted to 45,2 billion euros, an increase of 10,0% compared to the 41,1 billion euros recorded at the end of December 2018.
Technogym -2,7%. The shareholder Wellness Holdings has placed approximately 5% of the capital through an accelerated bookbuilding at 11,45 euros per share.
Atlantia-0,22%. The Benetton group has severed professional relations with the photographer Oliviero Toscani after his statements on the collapse of the Morandi bridge in Genoa. The photographer had declared on the radio: "But who cares if a bridge falls?".
