The prospect of a US Federal Reserve rate hike in the spring is the dominant theme at the start of the year, and US inflation figures will logically be the highlight of the week, with the opening of the results season in the United States. Closer to home, Atos has warned that it will not meet its targets for fiscal year 2021. At around 30 minutes from the opening, the contracts futures on the Cac 40 index suggest an increase of 0.3% at the opening of the Paris Stock Exchange.
Wall Street lost ground on Friday, weighed down by job creations half as many as expected in December. At the same time, the sharper-than-expected drop in the unemployment rate and the continued rise in the average hourly wage underscore the need for the labor market to continue to suffer from a labor shortage. .
US inflation still higher
Investors are now turning to consumer price statistics in the United States, expected Wednesday. Analysts expect inflation to rise further in December, reaching 6.8% in November, its highest level since 1982. In the minutes of its last meeting, the Fed warned it could raise interest rates faster than expected before tackling the downsizing of its balance sheet. The contracts futures on federal funds estimate at 90% the probability of a rate hike in March, against 63% at the very end of last year.
The yield on the American 10-year bond rose to 1.8% in session Friday before returning to around 1.76%, against 1.51% at the end of 2021. In Europe, the yield on the German Bund similarly maturity is approaching the 0% threshold after the new surge in inflation, both across the Rhine and in the euro zone, where it reached a record of 5% over one year, leading some to believe that the ECB will not no other choice but to raise rates despite denials from the central bank.
Atos warns about 2021 results
Also this week, the market will monitor the hearing on Tuesday of Jerome Powell before the Senate Banking Committee as part of his appointment to a second term as head of the Fed. That of Lael Brainard, for the post of vice-president, will follow Thursday. Powell and Brainard should, on this occasion, give new information on the timing of interest rate hikes by the US central bank.
Also in sight, the opening of the fourth quarter earnings season in the United States, with banks JPMorgan Chase, Citigroup and Wells Fargo on Friday, as well as the world leader in asset management BlackRock.
On the value side, Atos announced that it would not achieve the financial objectives it presented last summer for 2021. The IT services company reported 2021 turnover of around 10.8 billion euros, down about 2.4% at constant exchange rates when the group said it expected stable revenues.
Veolia Environment holds 86.22% of the capital of Suez at the end of its takeover bid, announced the Autorité des marchés financiers (AMF), thus confirming the creation of a new heavyweight in water and waste management with a turnover combined of about 37 billion euros.
Orange. Christel Heydemann, administrator of the group and boss of Schneider in Europe, could be the favorite among the candidates to succeed Stéphane Richard at the head of the French telecoms operator, reports the daily The echoes. The Minister of the Economy, Bruno Le Maire, would be particularly inclined to defend the candidacy of Christel Heydemann and would have informed the President of the Republic, writes the newspaper.
Sodexo announced that it has signed an agreement to acquire the American company Frontline Food Services, a player in the snacking and vending products market in North America, which operates under the Accent Food Services brand. The amount of the transaction was not disclosed.
CGG reported a 12% year-on-year preliminary pro forma revenue increase and forecast for 2021 as a whole free cash flow of approximately $ 15 million excluding the refinancing costs of the debt.
Among the analysts’ notes, Jefferies degraded Eurofins Scientific from “purchase” to “keep” while raising its target price from 92 to 100 euros.