Stock Market and Duties News Today, May 16. Europe Starts on the Rise, Focus on Quarterly Results
MILAN – The slow start of negotiations in Istanbul is cheering investors, who are hoping for a clearing up on the geopolitical chessboard. Concerns remain about the performance of the American economy, despite the recent agreements reached between the US and China to temporarily reduce tariffs, while waiting for a definitive agreement. Even the number one of JP Morgan Chase, Jamie Dimon , warned that he does not feel like ruling out the possibility of a recession. Meanwhile, the chairman of the Federal Reserve, Jerome Powell , said that rates could remain high for a long time. In Milan, the focus is on quarterly reports and calls between managers and analysts, such as the one by Unipol in the late morning.
Urso: “We are waiting for the end of the US-EU negotiations for possible compensation to companies”
"We have asked Europe for a simplification, a simplification shock, which must be done immediately to incentivize the activity of our companies and our continent. We have asked for a global review of the Green Deal, a comprehensive review process in Europe. As for possible compensation for American duties on Italian exports, we must wait until the end of the negotiations". This is what Adolfo Urso, Minister of Enterprise and Made in Italy, said at Investopia Europe 2025 underway at Palazzo Mezzanotte in Milan.
Richemont revenues in line with estimates, year over 21 billion
Richemont, the Swiss luxury giant, closed the year ended March 31 in line with estimates. Revenues recorded a +4% at effective and constant exchange rates, reaching 21.4 billion euros, thanks to the single-digit growth of the jewelry houses (Buccellati, Cartier, Van Cleef & Arpels and Vhernier) during the year. Operating profit stood at 4.5 billion euros, down 7% at effective exchange rates and 4% at constant exchange rates. Based on the results for the year and the net cash position of €8.3 billion at the end of March 2025, the Board has proposed to pay an ordinary dividend of CHF 3.00 per 1 A share (and CHF 0.30 per 'B' share), representing a 9% increase in the ordinary dividend compared to the previous year, subject to shareholder approval at the Annual General Meeting on September 10.
Asia closes weakly, eyes tariffs and the Fed
Asian stocks close weak, although the weekly partial is clearly positive and Goldman Sachs has increased its 12-month target for the Asian index from 620 to 660. Shanghai loses 0.4% to 3,367 points, Hong Kong retreats by 0.37%. Seoul bucks the trend slightly with a +0.21%. Previously, the Tokyo Stock Exchange closed unchanged (Nikkei at 37,753 points) after Japan's GDP contracted for the first time in a year in the March quarter, at a faster pace than expected, due to the threat of Trump's tariffs. The data highlights a fragile recovery and complicates the path of rate increases by the BoJ.
Nvidia to open R&D center in China (FT)
US chip giant Nvidia is planning to open a research and development (R&D) centre in Shanghai, the Financial Times reports, noting that the group's sales in China are being weighed down by Washington's restrictions on technology exports. Nvidia, which is headquartered in Santa Clara, California, dominates the market for cutting-edge chips that run generative artificial intelligence (AI) models developed since the launch of ChatGPT. But the company is paying the price for US restrictions on exports of its most sophisticated chips to China, imposed under President Joe Biden and maintained under Donald Trump.
Europe opens positively and looks to Ukraine-Russia talks
European stock markets, on the day of the technical expirations of stock and option futures, start the session in positive territory. Markets are looking at the talks between Russia and Ukraine to end the conflict. The United States' moves on the trade policy front are also in the spotlight. London (+0.4%), Frankfurt (+0.34%) and Paris (+0.27%) are up.
Japan's GDP slows (-0.2%), below expectations
Japan's economy contracted 0.2% in the first quarter of 2025, below expectations, amid persistent inflation and major uncertainties weighing on exports due to U.S. tariffs. Gross domestic product (GDP) in the world's fourth-largest economy contracted 0.2% year-on-year in the first three months of the year, after growing 0.6% in the fourth quarter of 2024, according to a first official estimate released by the government on Friday.
Illimity: “Banca Ifis’ takeover bid price is fair but uncertainties remain”
The board of directors of illimity Bank, on the basis of the documentation examined relating to the voluntary public purchase and exchange offer promoted by Banca Ifis and taking into account the opinions expressed by financial advisors Jefferies and Wepartner, approved the press release and concluded that the “consideration is appropriate from an exclusively financial point of view”. For the purposes of an overall assessment of the offer, the “aforesaid assessment must be read together with the considerations on the offer carried out by the board of directors, from which risks and uncertainties emerge”, the note adds.
The risks and uncertainties relating to Banca Ifis' offer, according to the board of directors of illimity Bank, are connected to "information gaps, expected synergies, the different industrial models of the issuer and the offeror, the risks of carrying out the transaction and the level of capitalisation of the new banking group".
Eni launches new buyback program
Eni will launch its new share buyback program in the coming days. The buyback, to be completed by the end of April 2026, will involve up to a maximum of 315 million Eni shares (approximately 10% of the share capital) with an outlay of up to 1.5 billion euros, as announced on 27 February 2025 during the Capital Markets Update. This amount may be increased, based on any increases in Cash Flow From Operations, up to a total maximum of 3.5 billion euros.
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