The European markets raise their heads again in anticipation of the meeting of finance ministers to be held, in the presence of Mario Draghi, in the afternoon. The worsening of the Italian economy and the prospect of a hard Brexit hang over the summit if, as is probable, Parliament rejects Theresa May's fourth attempt to get her plan approved. But the positive trend of futures on US stocks gave a boost to the recovering markets after a negative start: Milan - 0,2% at the start, now up 0,76% beyond the threshold of 21 points. Paris rises from -0,2% to +0,4%, Frankfurt +0,7% (from -0,1%). Madrid +0,4%. London also +0,4%.
The pressure on BTPs eases slightly, the yield falls to 2,70% from the initial 2,76%, the spread is reduced to 280 basis points from 292 yesterday, a record since 8 February. The 0,11-year German Bund trades at -2016%, on its lowest since XNUMX. In his latest speech just published, Ignazio Visco calls for a credible strategy for the reduction of public debt: "reducing the risk premium on Italian government bonds is a crucial goal,” says the governor.
Oil strengthens higher for the third day in a row, Brent +0,7% at 72,20 dollars. Over the weekend there is the informal summit of the OPEC countries plus Russia in Jeddah. It is very probable that Iran will be discussed above all.
In Milan they go up Eni +0,8% and Saipem +1,78%. Toned Tenaris +3%: United States and Mexico are close to resolving their trade disputes. For the pipe producer, if the duties on steel and aluminum entering the United States are lifted, there would be a positive impact of about 100 million dollars, more or less 5% of 2019 EBITDA.
The automotive rally that started yesterday after the news of the six-month postponement of Donald Trump's decision on possible tariffs on four wheels has come to a halt. Little move Fiat Chrysler at 13,13 euros (+0,2%). Moody's upgraded the company's ratings last night, outlook stable. Ferrari + 0,08%. Pirelli -1,78%.
Exor +1,65%. The subsidiary Partner Re presented a higher-than-expected quarterly report yesterday evening.
Down Generali -0,68% on the day of first quarter accounts, closed with 1,34 billion euros of operating profit, +7% year on year, in line with consensus expectations. The Life business was better than expected, with operating profit of 804 million euro (consensus 782 million). Net profit at 744 million euros (consensus 715 million): +28% year on year. Solvency at 207%, compared to 213% of expectations, also due to changes in accounting rules. Now the market's attention is focused on the Investor Day to be held in London on May 24th.
The banks are recovering. Unicredit+0,85%; Understanding + 0,75% UBI + 2%.
Tim +1,5% recovers from historic lows. Yesterday the CEO Luigi Gubitosi said that the TLC giant and Open Fiber are in advanced negotiations for a merger agreement which will be examined in the coming months. According to Mediobanca, a paper deal would represent a first step, followed by the listing of a minority stake in the new vehicle.
Prysmian +0,32% was awarded a comitted value of approximately 200 million euro awarded by the US group, Vineyard Wind, for the development of a submarine cable system that will bring renewable energy to the mainland electricity grid.
In the rest of the list:
Salini Impregilo +2,27% communicated that the total of new orders acquired since the beginning of the year amounts to 5 billion euro, of which, half a billion, are projects being finalised.
