MILANO – European indices projected to decline slightly at the start with the markets still looking at the data on theAmerican inflation as a reference to orient yourself during the week. The panel of economists interviewed by Bloomberg predicts that the price index will show an easing of inflationary pressure but the core indicator, which excludes food and energy, would still grow by 3.7% on an annual basis, still far from the 2% target set by the Fed.
Fewer surprises are expected from the meeting Bce on Thursday, if not a confirmation that the first rate cut from the European Central Bank should arrive in June.
However, the session was a plus in Asia. The Taiwanese chip manufacturer shines Tsmcwhich gains over four points and rises to historic highs after theagreement with the US administration on $11.6 billion, including $6.6 billion in grants and up to $5 billion in loans, to increase production of critical technology with a third factory in Phoenix, Arizona. Always on the Asian side, toned in particular Tokyowith the Nikkei index ending trading at +1.13% supported by the sharp rebound in the technology sector.
Wall Street turns lower
Wall Street is turning negative awaiting US inflation which will be announced tomorrow. The Dow Jones loses 0.79% to 38,585.56 points, the Nasdaq loses 0.68% to 16,144.29 points while the S&P 500 leaves 0.74% on the ground at 5,164.62 points.
Germany is the first EU country for state aid
EU countries with greater room for budget maneuver lead in the state aid ranking. According to the Scoreboard published recently by the European Commission, in 2022 the EU member state that spent the most on state aid is Germany, with 73.67 billion euros, which represents approximately 32.3% of total spending for state aid in the EU 27. Germany is also the largest economy in the Union: in relation to GDP in 2022, it is still second in the ranking, with spending on aid equal to 1.8% of GDP, after Hungary, first with 2.1%.
Wall Street opens higher
Wall Street opens higher, still attracted by the highs on the confidence of a dynamic US economy and awaiting the publication of the crucial inflation indicator tomorrow.
In early trading, the Dow Jones gained 0.13%, the Nasdaq gained 0.51% and the broader S&P 500 index gained 0.36%.
The gold rush continues, new highs
The rush of gold continues, reaching its historic highs again today, driven by geopolitical tensions and awaiting tomorrow’s data on American inflation which will be used to speculate on the Fed’s next moves. The precious metal, which by not paying interest acquires appeal in a context of low rates, it trades at 2,357 dollars on the spot market (+0.7%) after reaching a high of 2,365 dollars.
Tim stock rises with the support of proxies in Labriola
Tim’s stock rises on the stock market after the two main proxy advisors recommend that investors vote to confirm Tim’s CEO Pietro Labriola for another mandate against the alternative proposal of Merlyn Partners in view of the meeting on April 23rd. The stock, among the best on the list, advanced by 1.33%, to 0.2354 euros per share. In fact, after ISS, the proxy advisor Glass Lewis also recommends that shareholders vote for the list of Tim’s board of directors in view of the renewal of the board.
Milan increases losses mid-session
The Milan Stock Exchange widens the expected losses of the US inflation reading for March and the ECB’s decision on rates, on the agenda tomorrow and the day after tomorrow respectively. The Ftse Mib lost 0.71% to 34,071 points.
Goldman Sachs cuts defense stocks, down Leonardo
Defense stocks in Europe tumble after Goldman Sachs published a report in which it claims to see more downside than upside risks to the sector’s stock market valuations as we approach 2025. According to the American broker, in the last year the sector has been supported by expanding spending budgets but multiples are now at all-time highs. On Piazza Affari Leonardo lost 8.6% to 21.65 euros.
EssiLux closes 70 direct store acquisition in Japan
Acquisition in Japan for EssiLux. Through Luxottica Japan, the lenses and eyewear group closed the acquisition of Washin Optical, the Japanese optical retailer (dating back to 1951) “with a solid history of quality and attention to the consumer and approximately 70 direct stores in the country”. The agreement – we read in a note – represents an important step in supporting the growth of the optical market in Japan, the appreciation among its consumers of quality products and glasses, and customer service standards. It also confirms EssilorLuxottica’s commitment to developing its retail activities in the country, where it already operates with around 70 points of sale – both under the Ray-Ban, Oakley and Oliver Peoples brands and within department stores – and serves thousands of optical customers and partners. The acquisition of Washin paves the way for further investments in Japan and will allow EssilorLuxottica to better understand the dynamics of optical retail in the country and its future prospects, as well as representing a strategic lever to increase retail activity in the country, adds the group.
ECB, in the credit survey a first easing of mortgage criteria from 2021
According to the April Euro Area Bank Lending Survey (BLS), euro area banks reported a slight net tightening of their credit standards – that is, banks’ internal guidelines or loan approval criteria – for loans or lines of credit to businesses in the first quarter of 2024 (banks’ net share of 3%, lower than what banks expected in the previous cycle (9%). Banks, for the first time since the fourth quarter of 2021 , reported a moderate net easing of their credit standards for loans to households for home purchases (net rate of -6%), while standards for consumer credit and other household loans tightened further (percentage net by 9%). Risk perception continued to exert restrictive pressure on all loan categories, while competition and, for real estate mortgages, also banks’ risk tolerance, contributed to a loosening of credit standards . For the second quarter of 2024, banks expect moderate net tightening for corporate lending and unchanged credit standards for household lending.
Fincantieri, maxi-agreement with Norwegian Cruise Line
Fincantieri announced that it has received a very significant order from Norwegian Cruise Line Holdings Ltd. for the construction of 4 new new generation cruise ships: 2 for the Regent Seven Seas Cruises brand and 2 for the Oceania Cruises brand. Cutting-edge ships for constant leadership in technology, comfort and on-board entertainment as well as in terms of environmental sustainability. The announcement was made as part of Seatrade, the largest cruise industry fair in the world, taking place in Miami.
Amplifon’s crash with the Antitrust report on the hearing aid market
Amplifon plummeted in Piazza Affari after the Antitrust reported to Parliament, the Ministry of Health, the Ministry of Economy, Agenas, Regions and Autonomous Provinces critical issues and “lack of transparency of commercial conditions” in the hearing aid market. The stock of the group that markets hearing aids drops 5.2% to 30.8 euros.
Europe starts off weak
Weak start for European stock markets, awaiting the data on American inflation which will be released in the early afternoon. London lost 0.14%, Paris 0.36% while Frankfurt was unchanged.
Argentina, wages down 17% in January
The salary of Argentine workers fell by 17% between December 2023 and January 2024, according to the latest official data. According to an analysis carried out by the Economic Studies Center of the Provincial Bank (Bapro), this is the largest drop after a devaluation. The measure compares declines after exchange rate jumps in December 2013, November 2015, August 2018, August 2019 and November 2023, concluding that the current one is the worst wage collapse.
The report states that, in a time series of real wages, data from last January imply a return to the levels of March 2006, which was almost 18 years ago. In the race between prices and wages last year, workers’ wages grew by 191.5%, against an inflation of 254.2%, according to January 2024 data from Indec, the official statistics agency.
Tsmc at historic highs after the agreement with the USA
Tsmc, the largest contract chip manufacturer in the world, reaches historic highs (+4.09% at 815 Twd) on the Taipei Stock Exchange (+1.51%) in the aftermath of the agreement with the US administration on $11.6 billion to increase production of critical technology by opening a third factory in Phoenix, Arizona. The two already scheduled facilities are expected to begin production in 2025 and 2028. In total, the package will support more than $65 billion in investments across the three plants of TSMC, the go-to chipmaker for companies like Apple and Nvidia.
Little moving oil
Oil prices have changed little even if they are still showing a slight increase after the increases of the day before. WTI crude oil changes hands at 86.56 dollars a barrel (+0.15%) while Brent rises to 90.57 dollars a barrel (+0.21%)
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– 2024-04-09 15:58:08
