JANET YELLEN RELEASES THE BULL. TOKYO AND DOW JONES RECORDS. MOODY'S CUTS US BANKS. TELECOM FOR S&P IS JUNK
"I consider it imperative that we do what we can to promote a very strong recovery." Janet Yellen's business card leaves no room for doubt: in front of the Republicans in the Senate, the new president of the Fed has not tempered his tone or sought compromises.
On the contrary:
a) On the ongoing quantitative easing, Yellen then underlined that the Fed "is taking into account the costs and effectiveness of the program" and believes that "the benefits outweigh the costs";
b) The Fed is monitoring the possible development of bubbles in assets but Equity does not currently have the characteristics yet;
c) As for the Stock Exchange, Yellen does not see a general increase in leverage, while the evidence of a "race for yields" is scarce.
The debut of Janet Yelln has given wings to the stock exchanges. In Tokyo +1,75% the Nikkei index exceeds the bar of 15 thousand points for the first time since May. Hong Kong rises by 1,49%. Chinese stock markets also report, with great satisfaction, the news that the first details on the recent meeting of the CPC Plenum will be released next week: the CSI 300 index rises by 2,9%.
Driven by Yellen's words, Wall Street is also setting new records: the Dow Jones index rises by 0,35%, the Standard & Poor's 500 by 0,48%, the Nasdaq, already conditioned by the collapse of Cisco (-10%), recovers and closes at +0,18%. Moody's downgraded Goldman Sachs, JP Morgan, Morgan Stanley and BNY Mellon.
Warren Buffett bought 40 million Exxon stock in the last quarter. This is what emerges from the quarterly of Berksher Hathaway, the Omaha essay holding company. European stock markets left behind the slowdown in eurozone GDP in the third quarter, which had penalized prices in the middle of the day, and towards the end they returned to focus on the reassuring indications provided by the future president of the Fed, Janet Yellen.
The London Stock Exchange rose by 0,5%, Paris +1%, Frankfurt +1%. Even Piazza Affari found in the final moment the push to wipe out the losses and close with an increase of 0,1%. On the bond market, head-to-head between Btp and Bonos: the spread is reduced to 235 basis points for both, with a 4,06-year yield at XNUMX%.
FONSAI AND MPS, THE DOUBLE RESURRECTION
They were the crisis points of 2012. On the contrary, for the first time they are rewarded by quarterly reports. Fondiaria-Leaves +3,8%, the best blue chip in Piazza Affari, after better-than-expected results.
Mount Paschi +2% on the day of publication of the quarterly results. The loss for the January-September period, 518 million (compared to 1,577 billion a year ago) is mainly due to the 238 million charges linked to the Monti Bonds. In the single quarter the net result was negative by 138,3 million against the consensus estimate which expected a loss of 162 million. By the end of the year, MPS will achieve approximately 50% of the personnel reduction target.
Both titles are the best of their respective sectors: Unipol gained 1%, Generali +0,2%. Banks contrasted instead after the general decline on Wednesday. Unicredit lost 0,5%, Banco Popular -2,5%. positive Understanding + 0,4%.
TELECOM SLIDES TO BB+. A KICK FOR THE TOD'S ACCOUNTS
Standard & Poor's downgraded its rating by to 'junk' Telecom Italy -0,15% with negative outlook. The agency downgraded the telecom group's debt from B to BB+, mainly due to the high level of debt and the expected drop in EBITDA. The company has accepted the purchase offer of the entire controlling interest held in Telecom Argentina made by the Fintech group for a total amount of 960 million dollars.
It was a strongly negative day for the big names in luxury, dragged down by the fall of Tod's -4,4% whose results have disappointed the market. The numbers disclosed last night were not appreciated, as they turned out to be flat (+0,4% revenues in the 9 months and EBITDA unchanged) and below consensus expectations. Ferragamo –2,4% despite a record quarter. sapphire it gained 15,67% to 16,24 euros after the publication of the accounts which marked the return to profit in the third quarter for the first time since 2007.
WORLD DUTY FREE +2,1% CONQUERS HELSINKI AIRPORT
Good upside of World Duty Free +2,1% which won the tender for the management of 11 shops at Helsinki airport. Consistent discounts for Campari -2,9% Rest -2,3% and Diasorin -1,4%. Among industrial stocks, Finmeccanica fell 1,9% while the subsidiary Ansaldo Sts it gained 1,9%.
StM lost 1,9%, Fiat -1%. Positive Pirelli +1% and Cnh Industrial +1,3%. positive Eni+1% which yesterday successfully launched a fixed-rate benchmark bond issue and successfully concluded the reopening of the 12-year bond issued last September.
Very well Impregile it (+3,79% to 4,93 euros) which accelerated upwards towards the end of the session, returning to the highs of early November. In red Mondadori -7,43% which closed the first nine months with a loss of 32,3 million (16,3 million the profit of a year ago).
