Banking union, Germany opens: will it be the turning point?

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For the first time, the German finance minister, Scholtz, opens the guarantee on bank deposits, which would make it possible to complete the banking union: it is not clear if merkel shares but in Germany something is moving in the wake of the Deutsche Bank crisis

After the long charge, the Bull needs to catch his breath.
That is to say, without metaphor, the operators try to collect the profits of the
rally triggered by the prospect of imminent trade peace and decline
of rates. Thus the share prices in Asia slow down, but it continues a little
everywhere the downward correction of bonds and other safe haven assets,
in the face of greater risk appetite.

SCHOLZ TO THE FT: COMPLETING THE BANKING UNION

But the news of the day concerns Europe. In a speech in the Financial Times, German Finance Minister Olav Scholz opens for the first time the prospect of a common guarantee on bank deposits, the most important piece needed to complete the Banking Union. "The need to complete the banking union – he writes – is undeniable. After years of discussions the time has come to put an end to the word "also because with Brexit Europe will lose its main financial center, the City of London, which will have to be met with greater integration into the European financial system. An epochal turning point, even if it is not clear if what and how Scholz's idea is shared by Angela Merkel and the rest of the government. But the novelty signals however that something, (complicit the difficulties of Deutsche Bank) is finally moving: better late than never.

Weak lists this morning in Asia: the Nikkei in Tokyo is in
rise of 0.1%, the Hong Kong Hang Seng is on parity, the CSI 300 of
Shanghai and Shenzhen lists lose 0.3%, the Kospi of Seoul earns it
0.2%.

The ten-year Japanese bond yield goes up by
six basis points at -0.08%, a level not seen for six months. The
Ten-year Treasury Note reached 1.85% and the Bund
to -0.32%.

The gold has recorded one of the most daily decreases yesterday
in recent weeks, -1.7% to $ 1,485 an ounce.

Seventh consecutive session of falling dollar exchange rates
yuan, dropped below the psychological threshold of 7.

DUTIES: TRUMP WANTS TO SIGN IN OHIO, XI UP THE PRICE

Last skirmishes between the Great before the likely signing
of trade agreements. Beijing calls for the cancellation of duties (125
billions of dollars) imposed by Washington in early September. And the price
asked to adhere to Donald Trump's request to sign the agreements in
USA, Ohio or Iowa. President Xi, aware of the electoral weight of the
request, would have raised the price.

Wall Street witnessed almost motionless large maneuvers:
Dow Jones + 0.11%, S&P 500 -0.12%. Nasdaq + 0.02%.

TONFO DI UBER A WALL STREET, BRUSH THE OIL

Note the Adobe leap + 4.25% after brilliant accounts
of Photoshop Producer. Uber's thud (-9.85%) after the
quarter losses.

Brent oil at $ 62.7 a barrel, falling by
0.5%, after three consecutive sessions of upside.

The euro gained 0.5% on the dollar, to 1.107. Shortly
move the pound, on the eve of communications from the central bank of the
Great Britain. Today Boris Johnson, after having been to Elizabeth II, should
return to Downing Street and hold the campaign launch speech
electoral.

BRILLA ARCELOR AFTER THE RIP ON THE ILVA

The music did not change yesterday in the Old Continent. The European stock markets are advancing, at a reduced but steady pace, for the fourth day in a row waiting for the long-awaited peace on tariffs. There is no single thread to explain the upside except for the feeling that on the trade front, the worst seems to be behind us. But it is probable that today the price lists will open in the name of caution. Meanwhile, the breach on the Ilva has not damaged Arcelor Mittal who, after the break, scored a 6% rise in two days (yesterday + 2.2%).

LVMH SFORA THE WALL OF 200 BILLION EUROS

Piazza Affari closed up 0.23% to 23.364
points.

In the third quarter, the GDP increased by 0.1% on a base basis
economic situation, confirming the dynamics of the three previous quarters.
The trend increase in the third quarter was + 0.3% and growth
acquired for 2019 stood at + 0.2%.

The best price list is that of Paris (+ 0.4%) in the wake of the
LVMH march (+ 0.7%). The luxury giant celebrated the goal yesterday
of 200 billion euros of capitalization, in second place in Europe behind
Royal Dutch Shell (+ 0.85%).

Arretrano Madrid (-0.14%) and Zurich (-0.57%). Sale London (+ 0.26%).

A BITCOIN PLATED BCE? WHY NOT?

Even the European Union, like China, could take in
considering the launch of a public digital currency, as revealed
from a draft of a document prepared by the Finnish presidency
viewed by Reuters inviting the Eurozone, following the Facebook project,
much criticized by regulators, to introduce a private currency and to develop
a common approach to cryptocurrencies, including a possible ban on projects
deemed too risky.

THEY WENT THE PERFORMANCE OF THE BUNDS. BTP OVER 1%

The race for safe havens is interrupted, the spread is reduced
under 131 points: The yield of the German ten-year Bund has risen to
-0.31%, on levels seen last time in July. At the end of October the
percentage of government bonds in the euro zone with a negative return
however it was down to 62% from 69% at the end of September. On a monthly basis, yes
this is the first decline from April to this part.

Depressing the yields of the Bund was the same descent
US Treasury after the unexpected improvement in the ISM Index does not
US manufacturing. the yield on 10-year Treasuries rose to
1.87%, maximum from mid-September, and that of the German government bond at 20
years has returned briefly positive for the first time since July.

The yield of the ten-year BTP rose again for the first
over 1% (1.017%).

INTESA, RECORD USEFUL. BANKS FOR MAXIMUM FROM MAY

The rise was supported by the banks yesterday: the FTSE index of Italian banks (+ 1.5%, 9,200 points) touches the new highs since the beginning of May thanks to the positive quarterly results of FinecoBank (+ 1.7%) on prices that did not see in 2016 (71% in the last 12 months) and Intesa Sanpaolo + 1.7% (net profit equal to 1.044 billion, Npe ratio to 7.6%, down 13% compared to the beginning of the year), published in the early afternoon.

Unicredit does even better (+ 1.65%). Monte Paschi (+ 4.4%)
takes flight on the eve of the accounts.

The fund's gain since the beginning of the year widens to + 21.0%,
almost in line with the + 22% recorded by the Eurostoxx50 index.

In the last month a brilliant run-up started
Italian banks in the most virtuous sectors: the benchmark index has indeed gained
13.5% against the + 6.5% accumulated by the Eurostoxx50.

AZIMUT SUPERSTAR, BUFFETT DEFENDS MINALI

Azimut + 3.45% after the release of quarterly data. There
company closed the first nine months with a consolidated net income equal
at 247 million euros, + 120% on an annual basis.

Among insurance companies, Cattolica leaves 0.6% in the field: il
partner Warren Buffet says he is disappointed by the change at the top of the week
last. The Omaha oracle talks about it in an email sent directly to
general manager Carlo Ferraresi, manager to whom the delegations were turned
of the former CEO of Cattolica Alberto Minali.

SAIPEM GUIDES THE CHARGE OF ENERGY

Another strong topic of the session is oil.

Saipem (+ 3%) could close an important one soon
corporate reorganization, with the separation of the drilling activity.
In the list of potential partners there could be Helmerich and Payne,
Patterson-Uti and Pioneer Energy services, all US companies of the
drilling sector. Contacts were also taken with Transocean.

Eni + 1.60%. Angola has formed a consortium of five
international oil companies including Eni and Chevron to develop gas
liquefied natural gas (LNG) for its Soyo plant. The project of
consortium will have an initial cost of 2 billion dollars

Tenaris + 1%. Goldman Sachs has cut the target price
at $ 20.6.

FCA, MOODY'S IMPROVES THE OUTLOOK

Still up Fca (+ 0.6%): Moody’s has improved
the outlook on the rating of the automotive group to ‘positive’ from ‘stable’,
confirming the Ba1 assessment, following the announcement of the plan of
integration with Peugeot.
Ferrari (-2.7%) corrects after the rally following the accounts.

MOTORS IN DOUBLE DIGIT, PIAGGIO ACCELERA

Sesa + 0.5%. The participated by Tip has perfected
the acquisition of 100% of the capital of Pico, a company active in the offer of
Digital Media software solutions, historic Adobe partner, with revenues of
sale at December 31, 2018 of approximately 20 million euros.

Piaggio + 3.47% on the opening day of the show
motorcycle. The two-wheeler market has started to double up again
figure in October, both in Italy and in Spain. In Italy, the growth of
vehicles over 50 displacement was 11%, in Spain at
12%. Piaggio president Roberto Colaninno said: "we did
much more than we thought: in terms of results, technology and
products. We have done even more as a global presence by starting
always from Pontedera and therefore from Italy ”.



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