Today's stock markets, November 7. Markets are tepid in Europe, with Milan focusing on quarterly results.
A week of ups and downs on global markets comes to a close today, weighed down by the sell-off in technology stocks linked to artificial intelligence . This comes as Tesla shareholders overnight approved a massive bonus for CEO Elon Musk worth $1 trillion over ten years. At the Milan Stock Exchange, all eyes are on the start of the financial reporting season, particularly on Banco BPM and Pirelli following their quarterly results released yesterday after markets closed. This will continue with MPS's better-than-expected results, published this morning, as well as those of Unipol , which also reported strong growth.
Against the backdrop of renewed Ukrainian attacks on Russian refineries, which are pushing up crude oil prices , and US-China trade tensions over the semiconductor supply chain, which are keeping uncertainty high. Among the macroeconomic data items on the agenda today is Germany's foreign trade, a barometer of the European manufacturing cycle.
Juventus' losses down to €58.1 million
With 99.9% of the share capital represented at the meeting, Juventus's 2025 financial statements, which ended on June 30, were approved. The document shows a loss of €58.1 million, significantly reduced compared to the previous financial year (€199.2 million), primarily due to the club's return to the UEFA Champions League and increased revenue from player rights.
Tim shares up 2% on the stock market, BofA raises its target price.
TIM is shining on the stock market, with Bank of America raising its target price by 4% to €0.54 from €0.52. Analysts believe it "could exceed its targets for fiscal years 2025, 2026, and 2027, with upward revisions to the 2025 results. Meanwhile, operating momentum is positive." On the Milan Stock Exchange, the stock rose 2% to €0.49, while the main index fell 0.5%.
Milan's performance worsens with Europe, with MPS and TIM in the spotlight.
The Milan Stock Exchange (-0.7%) declined, in line with other European markets. Uncertainty prevailed in the markets as US unemployment data awaited. At the Milan Stock Exchange, TIM performed positively (+2.4%). The spread between Italian government bonds (BTPs) and German Bunds stood at 76 points, with the yield on the 10-year Italian bond at 3.42%.
On the main index, MPS (+2%) flexed its muscles after better-than-expected results and the prospects for the future following the acquisition of Mediobanca (+0.7%). Moncler (+2%) and Snam (+0.7%) also made acquisitions. Lottomatica (-3.5%) and Prysmian (-3%) both saw sharp declines. The insurance sector also performed poorly, with Generali falling 1.8% after Fitch confirmed its rating, and Unipol (-2.5%), despite growing results. Diasorin (-1.6%) and Stellantis (-1%) fell, bucking the trend of German competitors who are seeing a solution to their microchip supply issues.
Honda lowers full-year profit estimates due to chips and tariffs
The persistent semiconductor shortage continues to weigh on Honda's production and profitability, forcing it to lower its profit estimates for the current fiscal year. For the fiscal year ending next March, Japan's second-largest automaker's net profit is expected to be 300 billion yen, equivalent to approximately 1.69 billion euros, compared to the 420 billion previously announced: a decline of 64.1%.
Operating profit forecasts also declined, dropping from 700 billion to 550 billion yen, and revenue fell to 20.7 trillion yen from 21.1 trillion. The figures for the first half of the fiscal year ended in September paint an already bleak picture: net profit fell 37% to nearly 312 billion yen, while operating profit fell 41%.
Trade tensions with the United States played a significant role in the deterioration; in April, the Trump administration raised tariffs on Japanese vehicle imports from 2.5% to 27.5%, only to reduce them to 15% in negotiations that began in September.
Rheinmetall launches joint venture to produce space satellites
German arms giant Rheinmetall will also produce space satellites in the future. The company announced in Duesseldorf the launch of a joint venture with Finnish satellite company Iceye. The joint venture, called Rheinmetall Iceye Space Solutions, is headquartered in Neuss, where a Rheinmetall plant that produces components for the automotive industry will gradually be converted to arms production.
Rheinmetall holds a 60% stake, while the Finns hold 40%. Operations are expected to begin by the end of the year, and the first satellite is expected to be produced in Neuss next year. According to the group's statement, these are so-called SAR satellites, which provide highly precise reconnaissance images to the armed forces. The technology comes from Iceye, a relatively small company with 700 employees, while Rheinmetall has around 40,000 worldwide.
Unipol gains (-1.2%) after the accounts, few surprises for brokers
Unipol shares fell 1.2%, trading at around €19.10 after the publication of its nine-month results, which were released this morning. Intermonte's assessment was balanced: "Unipol reported results essentially in line with expectations and without any particular surprises." According to Equita, the company reported slightly better-than-expected results, "mainly thanks to the damages" and that the positive pre-tax surprise was due to "a higher net financial result of €188 million versus estimates of €79 million."
Gold returns above $4,000 an ounce
Gold has returned above $4,000 after a slow start. Prices rose slightly, 0.01%, to $4,007 an ounce, after hitting an intraday high of $4,014.
Europe weak amid US economy and quarterly results
European stock markets are weak following US labor market data and the potential impact of the Fed's rate cut decisions. Markets remain volatile as uncertainty persists over artificial intelligence investments and earnings results. On the currency front, the dollar strengthens against major currencies. The euro falls to 1.1537 against the greenback.
Madrid (-0.6%) and London (-0.4%) declined. Paris (+0.03%) and Frankfurt (-0.07%) were little changed. The main stock markets were weighed down by utilities (-0.5%), with the price of gas falling 0.4% to €31.41 per megawatt hour. Banks (-0.2%) and insurance companies (-0.5%) were weak. The technology sector was little changed (-0.06%). Energy rose (+0.1%), in line with the price of oil. WTI gained 1.3% to $60.21 a barrel, and Brent crude gained 1.1% to $64.12. The auto sector (+1%) and luxury goods (+0.7%) performed well.
Banca Profilo's profit grew by 30% in the first nine months.
Banca Profilo closed the first nine months of the year with a consolidated net profit of €9.4 million (up 30.3% year-over-year). Consolidated net revenues amounted to €50.7 million (down 4.4% year-over-year). A strong focus on containing operating costs resulted in a 10.6% reduction in the third quarter alone.
Operating profit, net of non-recurring items, amounted to €10 million (-19% year-over-year) for a cost-income ratio of 80.4%. The CET1 ratio was 22.6%. Total customer deposits amounted to €5.5 billion (-15.7% compared to December 31, 2024), mainly attributable to the departure of bankers in the third quarter.
Turkish Central Bank raises inflation forecast to 33% for 2025
The Central Bank of Turkey has revised its inflation forecast for the end of 2025 from 25%-29% to 31%-33%. This was stated by the bank's governor, Fatih Karahan, as reported by Turkish media.
"Although the disinflation process, underway since June 2024, has recently slowed, we will ensure that inflation remains in line with our intermediate objectives through the measures we will adopt. We will continue to use all monetary policy tools with determination," Krahan said, presenting the latest annual report in Ankara on inflation, which reached 32.87% in October, marking a slight decline from the previous month, after peaking at 75.45% in May 2024.
Lovaglio (MPS): "Decision on Mediobanca delisting included in new plan"
"With a free float of 14%, Mediobanca is a stock with low liquidity, but it's too early to make the decision to delist Mediobanca; this is part of our business plan," MPS CEO Luigi Lovaglio said in a conference call with analysts.
Europe opens positively, with quarterly results in focus
European stock markets opened the session in positive territory. The continent's main markets set aside concerns about artificial intelligence investments and focused on quarterly earnings. They are also looking for clues about central banks' next moves for further interest rate cuts. Frankfurt (+0.29%) and Paris (+0.27%) opened higher. London (-0.11%) was weak.
Milan opens higher, MPS jumps
The Milan Stock Exchange is seeing early gains, with the FTSE MIB up 0.38 points and 43,229 points. MPS jumped 3.68% after better-than-expected results . Among other banking stocks, Intesa Sanpaolo rose 0.27%, Unicredit was flat, and Mediobanca rose 2.17%. Unipol fell 0.33% after its quarterly results. TIM performed well (+0.94%). Among industrial stocks, Stellantis rose 0.63% and Pirelli rose 0.16%. Energy stocks included Enel, down 0.06%, and Eni, up 0.50%.
MPS's entire profit is paid out on a coupon basis, with a "large capital buffer."
MPS has promised to allocate its entire profit to dividends, thanks to its large capital buffer, equal to a CET1 ratio of 770 points, above the minimum requirements imposed by the ECB. This was revealed in the Siena-based bank's earnings release. Following the completion of the Mediobanca takeover bid, MPS still has a fully loaded CET1 capital ratio of 16.9% (compared to 19.6% as of June 30, 2025), while the fully loaded total capital ratio is 19.3% (compared to 21.8% as of June 30, 2025, and 20.5% as of December 31, 2024). "These figures," the note explains, "do not include period profits, assuming a dividend payout of up to 100% of the MPS group's net profit."
Unipol's nine-month profit rises to €1.23 billion (+48%).
Unipol closed the first months of 2025 with a consolidated net profit of €1.235 billion, up 48% compared to the same period in 2024, including the contribution of banking investments as of 30 September 2025 and with a consolidated net profit of €1.12 billion (+54.7%) which includes the contributions of Bper and Popolare di Sondrio only until 30 June.
Direct insurance premiums, a statement explains, rose 10.8% to €12.6 billion, of which €6.8 billion from non-life insurance (+4.5%) and €5.9 billion from life insurance (+19%). The insurance group's profit rose 45% to €961 million.
MPS's profit beats estimates, new plan for 2026
MPS closed the first nine months of the year with a net profit of €1,366 million, down 12.7% from the same period in 2024. Net of tax effects—2024 benefited from tax benefits of €470 million compared to this year's €78 million—the result was up 17.5%. In the third quarter, profit rose 16.5% to €474 million, beating analysts' expectations of €366 million.
MPS will present its new business plan, which will take into account the acquisition of Mediobanca , during the first quarter of 2026.
Asia closes down, doubts over technology weigh on
Asian stock markets closed lower, following Wall Street and weighed down by the decline in the technology sector. Markets are questioning the future of artificial intelligence and the level of investment.
Tokyo closed in the red (-1.19%), with declines in Advantest and SoftBank. On the currency front, the yen was little changed against the dollar at 153.40 and at 177 against the euro. With trading still ongoing, Hong Kong (-0.96%), Shanghai (-0.22%), Shenzhen (-0.24%), Seoul (-1.81%), and Mumbai (-0.24%) also fell.
Exports to China collapse in October, -1.1%
China's exports and imports slowed sharply in October, exceeding expectations, marking an uncertain economy amid sluggish consumption and trade tensions with the US. According to data from the Beijing Customs Administration, shipments recorded a negative annual balance of -1.1%, sharply correcting from the 8.3% increase in September and the 3% increase estimated the day before. Meanwhile, foreign purchases rose just 1%, compared to a 7.4% increase in September and the 3.2% increase expected. However, the trade surplus stood at $90.07 billion last month, unchanged from September's $90.45 billion and below the $95.6 billion expected.
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