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We had the bag … then we sold it

Borsa Italiana, owned by the British London Stock Exchange, was sold for 4.3 billion euros to the French of Euronext after being bought for 1.6 billion with a net profit from the operation of 2.7 billion.

And the English are good.

Who have they been to buy? The French of Euronext together with two new Italian investors who will have a power equal to that of their transalpine cousins: in fact, 8% will be owned by CDP and 2% by Banca San Paolo Intesa.

There are those who argue that this is a great success but I think it is the image of the decline of a country like ours that does not have a shred of long-term industrial policy.

Let’s go back to the facts: we had a time Italian Stock Exchange, which we sold to the British, who apparently managed it well and earned us a lot of money and now the British are reselling it to us Italians along with our French cousins.

But by now the country is completely numb and therefore no one asks any questions down to earth: most of the financial commentators in fact applaud this initiative while the few others do not mention it.

It is like saying that in Italy 10 years ago we had Parmigiano Reggiano but since we did not know how to manage it we sold it to the British who after 10 years returned it to us to sell it at 3 times the initial price.

Down with open-stage applause!

Long live Italy!

But let’s get back to talking about market trends which is better.

The dollars!

In fact, there is still talk of giving panem and circuses rain for 1.8 billion dollars just before the elections and the stock exchanges thank and fly!

In addition, it seems to me, according to those who know more than me, also of an alleged overtaking by Biden on Trump (not that I like them both to be clear … then frankly, I have been away from politics for years now and are only close to mine portfolio) and the markets reacted positively.

Wall Street it is starting to touch historical highs again and unfortunately this will happen close to the US elections and therefore the result of the US elections will affect the immediate future.

In technical terms, will we have a further historical high or a double high with a subsequent retracement of months if not years?

Let’s say again that the pandemic unfortunately helps and the upside breakdown will not stop: the FAANG stocks will continue to grind profits while those of the traditional economy will follow suit, albeit very calmly. By now we will see again a winter with an established pattern.

Which actions to bet on? Among all the Italian shares we highlight Biesse.

Biesse: the 2020 half-yearly report indicated that the company has been hit hard by Covid with a turnover down by 25.4% and a Mol that fell by 42%. However, the company shows a very respectable equity and financial profile with a cash to debt ratio of 0.86 and an interest coverage of 9.17. The company has a long history of double-digit profitability and therefore a recovery in prices can be expected despite the fact that the 2019 financial year has already closed down compared to previous years.

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