Wednesday, August 12, 2015

Bags, the double devaluation of China sinks lists. Milan fall: -3% – The Messenger

Sink their bags after the double assessment launched by China to revitalize the economy. Do not stop even discounts of Made in Italy luxury, again under a stream of strong sales in the wake of Beijing’s move will make the brands more expensive for Chinese customers.

Among the indices of Euroland, Paris and Frankfurt, lose more than 3 percent. Lower the drop in London, while also the Milan Stock Exchange lost about 3 percentage points.

This morning the Central Bank of Beijing has intervened again on its currency in an attempt to boost exports and support the economy . At the expense, in addition to luxury stocks and companies most exposed to the Chinese market, also the sector of raw materials and assets deemed riskier. There is also who estimated that the Federal Reserve may decide to delay the exit strategy to prevent an excessive appreciation of the dollar, targeted as it was considered “safe haven”.

It dates from the spread, ranking 117 points basis, an increase of 3 basis points, the yield of ten-year BTP equal to 1.76% despite the agreement in principle signed yesterday between Greece and international creditors.

Among the markets of the Old continent, in freefall Frankfurt, sinking 3.08%; lower the drop in London, down 1.43%, while in Paris, marks a drop of 3.5%. Session to forget for the Italian stock market, with the FTSE MIB that leaves on the ground 3.12%.

The strongest declines have occurred on Fiat Chrysler Automobiles, who filed the sitting at -6, 46%, in a sector today bombarded by sales along with that of luxury on fears that the depreciation of the yuan would have a negative impact on the profits of companies that sell in China. Sensitive losses for Luxottica, down 4.95%. In apnea Salvatore Ferragamo, which loses 4.91%. Sales do not spare Exor Today the holding company has officially announced the purchase of 43% of the weekly The Economist. Finmeccanica also down (-4.54%) despite JPMorgan has raised the price target from 11 to 12.4 EUR confirming ecommendation to neutral.

Beijing has acted on its currency to revitalize the Chinese exports, fell 8.3% in July, and boost the economy. But investors fear that the weakness of the yuan will erode the purchasing power of Chinese consumers and render less imported goods, especially cars, smartphones and high-fashion brand signed by Europe and the US, they will become more expensive. Not only: the mini yuan could also have a negative impact on tourism, especially on journeys of so-called “middle class” of China.

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