Dietrofront of the Bags with Trump’s tweets. Cir and Exor are in Milan
The US president thunders over commercial tariffs and the Federal Reserve and sales start on the stock markets. The shares of the L’Espresso Group were suspended on the day of Cir’s board of directors on the Agnelli holding proposal. Orders for 38 billion dollars from investors who aim to receive Saudi Aramco shares
Trump triggers sales on European exchanges. The stock markets, after a start up thanks to the recovery trend of Chinese manufacturing activity in November, quickly started the descent after US President Donald Trump’s tweets that herald new duties on steel for Brazil and Argentina and returns to suggest the moves in monetary policy to the Federal Reserve. The FTSE MIB in Piazza Affari is held back by utilities, has gone on to yield almost half a percentage point, turn around also for the other European indices.
Trump on the attack: Brazil, Argentina and the Fed in the focus
New attack by the American president Donald Trump at the Federal Reserve, which should lower rates and launch a more accommodative monetary policy. Following the tweet in which he announced new duties against Brazil and Argentina, accused of letting their currency depreciate by damaging American farmers. “So, with immediate effect, I will once again introduce duties on all the steel and aluminum imported into the United States from these countries,” wrote Trump on his Twitter account.
US-China is always negotiated to fuel uncertainty
The American markets, another tweet from the US president says, “have gained up to 21% since, on January 3, 2018, duties were announced and the United States is collecting huge amounts ‘of money (and they are giving a part to the farmers, who have been targeted by China) “.
Juventus capital increase starts in Piazza Affari
In Milan, Juventus Fc shares are stable after a good start in the first day of the 300 million capital increase while the rights to subscribe the transaction are in sharp decline: prices adjusted on Friday evening by Borsa Italiana based on the increase were € 1.271 for the share and € 0.1091 for the right.
In detail, in execution of the increase a maximum of
322,485,328 newly issued ordinary Juventus shares will be issued to be offered as an option to the company’s shareholders in the ratio of 8 new shares for every 25 Juventus shares held, at the subscription price of 0.93 euro for each.
Restructuring of the L’Espresso Group, expected by the board of the parent company Cir
The holding companies Exor and Cir Ord go on the day of the board of directors of the De Benedetti family company on the proposal to purchase a controlling stake in Gedi (title suspended on the stock exchange) by Exor. The transaction takes place in the publishing sector Rcs Mediagroup but also other titles such as Mondadori, Il Sole 24 Ore, Cairo and Class. Well the luxury, down instead Nexi and the utilities that had been among the protagonists of the session on Friday.
Unicredit holds: reduced the share in the Turkish bank Yapi
Tiene Unicredit after the group announced the exit from the jv with Koc on the Turkish institute Yapi Kredi of which now the Italian bank will hold just under 32% from the previous 41%. The operation, which should be completed by mid-2020, “is part of UniCredit’s strategy of simplifying the group’s structure and optimizing the allocation of capital”.
Sales on European government bonds, BTp 10 years returns to 1.47%
The BTp / Bund spread widens at the end of a morning of strong sales on all Eurozone bonds with returns clearly up. The yield differential between the 10-year benchmark BTp (Isin IT0005383309) and the German maturity, after a stable start, started to rise and is now indicated at 175 points, from the 169 points of Friday’s final. Even more marked is the increase in the yield of the ten-year benchmark that is now at 1.47%, up sharply from 1.34% on the previous closing.
The trend of government bonds, especially Italian ones, could be affected by the outcome of the debate on the Mes, the state-saving fund. Eurozone Ministers’ Meeting could bring developments on the Banking Union and the State Savings Fund (MES) , with direct repercussions on the quotations of credit institutions and indirectly on government bonds.
Manufacturing in the spotlight: China and the Eurozone are on the rise
Between Monday and Wednesday, the results of the November surveys among service and manufacturing companies will be widespread, useful for testing the progress of their activities. In China the Caixin indexes showed a manufacturing activity that rose in November, in Europe with the Ihs-Markit Pmi they reported a slight increase both at the overall level in the Eurozone driven by Germany and France, while the figure was down slightly Italian. The American ISM manufacturing figure is scheduled in the afternoon.
Among the macro data in the final balance, by contrast, orders for industry (Thursday, + 1.3% in October) and industrial production (Friday, October + 0.8%) are expected in Germany in the week, expected to confirm the improvement of the German economy recorded by the GDP just above zero. Also on Thursday, the euro area GDP for the third quarter is on the agenda (final figure, preliminary + 0.2%).
Aramco: orders for 38 billion dollars for the record Saudi Aramco listing
received orders for 144.1 billion riyals, equal to 38.4 billion dollars, for the tranche dedicated to institutional investors of its IPO. The global coordinators report in a joint declaration. Institutional bookbuilding began on November 17 and investors have until December 4th to place orders. Aramco has announced the sale of 1.5% of its shares, of which 0.5% aimed at retail in an offer that ended last week. The price will be set on December 5, at the end of the offer, on the basis of a fork of 30-32 riyals destined to bring a collection of up to 25.6 billion dollars. So far, the Saudi oil giant has received subscription orders from institutional buyers for around 4.6 billion shares, Samba Capital said,
Mes reform: on Wednesday, the Eurogroup
The meeting of ministers from the euro area (Eurogroup), followed on Thursday by the limited assembly for finance managers (Ecofin), should continue work on the banking union. Among the conditions set by Germany to accept the sharing of the current account guarantee fund is the reform of the State- funded Salvation (European Stability Mechanism or Mes, in Italian) which would be involved in the resolution of banking crises. The matter is rather delicate because it deals with the assessment of the solvency of a country and the decisions on the actual value of its debt securities. The banksthey are under two aims of the European turning point: as recipients of the reform and as holders of many government bonds, which could (according to the hypotheses circulated) be accounted for with a discount to compensate for a greater risk of depreciation.