(Boursier.com) — THE TREND
Thanks to a gain of 0.52%, the CAC40 rose above 7,300 points to close at 7,328 pts, up for the third consecutive session. Investors remain optimistic ahead of the Fed’s monetary policy decision tonight (8 p.m. in France)… A status quo is almost certain, while according to CME Group’s Fedwatch barometer, traders are now counting with a probability of 95% on maintaining the fed funds target at 5.00%-5.25%. However, this pause could be short-lived since the probability of a further rise in the cost of credit in July is more than 63%, with core inflation in the United States in May still remaining high (+5.3% on one year) despite the slowdown to 4% over one year in consumer prices (CPI).
“A ‘skip hawkish’ is the most likely scenario for today’s FOMC,” say strategists at Mizuho International as quoted by ‘Bloomberg’. “We expect Powell to continue with a relatively hawkish tone at the press conference to prevent a dovish market reaction, stressing that inflation is still too high and that the Fed will be determined to bring inflation back. to its purpose”. Michael Hewson, chief market analyst at CMC Markets, added: “While markets expect the Fed to announce no change today, Powell’s biggest challenge will be maintaining the outlook for a rate hike in July as a credible result”.
Tomorrow, it will be the ECB’s turn to take center stage. The Institution should further raise its rates by 25 basis points given the still very high inflation in Europe. Business news is becoming more and more limited in mid-June even if speculation around Casino is in full swing…
The euro remains firm against the greenback, at $1.0855. The barrel of Brent rises again to $74.
RISING VALUES
rally soars by 39%. Casino’s parent company is taking advantage of speculation around the Saint-Etienne group.
Casino flames 21%. We learned, before the opening of the Paris market, that the trio Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari intends to try their luck in the file. In response to rumors echoed in the press, the distributor indicated that it had received a preliminary letter of intent from the three businessmen relating to a proposal to strengthen Casino Guichard Perrachon’s equity up to a amount of 1.1 billion euros, of which 200 to 300 million would be invested directly by them, the balance being subscribed by partners who would associate themselves with their project (including current creditors who would like to reinvest in capital). This proposal would be accompanied, to the extent necessary, by an adaptation of Casino’s existing debt to its capacities and the preservation of its growth potential.
inventive climbed 26% with Orpea (+17.8%) and AB Science (+12%)
Xilam : +5% followed by SES, Poxel
Mercialys : +4% with Vantiva, Valneva, Séché, Euroapi, Renault with Akwel (+3.5%)
Partouche Group (+3.3%) recorded solid growth in the 2nd quarter. Overall, revenue for the period amounted to €99.2 million (€89.1 million in 2022), up +11.4%. At the end of April, the cumulative turnover over 6 months amounted to 215.6 ME (187.2 ME in 2022), representing growth of +15.2%. Over the half-year, Net Gaming Revenue came to 176 ME (+14.8%), confirming the renewed dynamism of activity since the end of the Covid crisis.
Maurel & Prom (+2.5%) is in advanced discussions with the shareholder of Assala Energy Holdings Ltd concerning the acquisition of all the shares of Assala. Assala is an onshore oil company active in Gabon in the production, transportation and storage of crude oil, with quota-share production of approximately 45,000 bpd in 2022. There can be no assurance that the parties will agree on the final terms of the proposed acquisition, or that the proposed acquisition will be completed.
Plastic Omnium : +2.5% followed by Teract, Forvia, Korian
Vallourec : +2% followed by Euronext, Waga, IPSOS, Téléperformance
Vicat climbs another 1.6% and aligns a seventh consecutive session in the green. The flow of buyers on the cement manufacturer is fueled by a note from Kepler Cheuvreux, which has resumed monitoring of the file with “buy advice” and a target of 35 euros. The market is fairly divided on the action since, according to the ‘Bloomberg’ consensus, 4 analysts are on the ‘buy’ side, 6 on the ‘hold’ side and 1 on the ‘sell’ side. The average 12-month target is set at 31.56 euros.
Vente-Unique.com advance of 0.4%. TP ICAP Midcap raised its target from 15.4 to 15.9 euros while confirming its ‘buy’ opinion. In a gloomy consumer environment, the company surprises with its dynamics. Half-years should be resilient while the second half still looks positive, says the broker. The valuation remains attractive considering that Vente-Unique.com is one of the few pure-players to be profitable in the furniture sector, adds the broker.
Atos increased by 0.1%, while the international independent proxy advisory firm, Institutional Shareholder Services (“ISS”), recommends that shareholders vote for all the resolutions proposed by the Board of Directors (Resolutions 1 to 24) and against the four additional draft resolutions (Resolutions “A”, “B”, “C”, “D”) proposed by three activist shareholders each holding less than 1% of the company’s shares. The latter are asking in particular for the dismissal of Bertrand Meunier, Ms. Aminata Niane and Mr. Vernon Sankey from their terms of office as directors and the appointment of Léo Apotheker as directors. In its report published on June 13, ISS, which supports the recommendation of the Atos Board of Directors, underlines the following points: “… the dissenting party did not oppose the proposed turnaround strategy and does not has not presented a proposal to improve operational performance… the dissenting party has not presented a sufficiently convincing case to justify a change at this stage… There is no tangible evidence that the Board, which has been substantially renewed in recent years, does not function satisfactorily”.
FALLING VALUES
dare : -3% followed by Savencia, Schlumberger
Innate : -2.8% with Transgene, Wavestone, Nanobiotix
Sword : -2% followed by Alstom (-1.5%) with Catana, Lectra, Guerbet
GTT : -1.5% followed by Thermador, Tikehau, Exail
CGG : -1% with Thales, McPhy, Wendel, OVH, DS
Saffron (-0.6%) expects an “unprecedented supply crisis” in the aerospace industry to last until 2024. Thus, in an interview with the ‘Financial Times’, the managing director of Safran, Olivier Andriès, declares that the group and the entire industry had to fight daily to obtain parts. Olivier Andriès, quoted by the FT, adds that Safran is open to further share buybacks given that the company has had a good cash generation profile over the past two years, while it is also considering more acquisitions. important. He notes that a potential deal for Raytheon’s flight control unit would be a one-step move to help the company become a market leader in an area where it is lagging behind its competitors. O.Andriès finally reaffirms Safran’s objective of delivering 1,700 Leap engines in 2023.
Elis (-0.2%) announced the acquisition of 100% of Gruppo Indaco SRL (“Gruppo Indaco”) in Italy. This acquisition will be consolidated in the accounts from June 1, 2023, and 2023 revenue is expected to be around €5 million on an annual basis.