(Boursier.com) — THE TREND
Slightly down at the start of the session, the CAC40 has gradually caught up and is now up 0.4% to 6,240 points. However, the trend remains cautious in this risky week with a multitude of corporate publications in Europe and the United States and the Fed’s monetary meeting. After the ECB’s 50 basis point tightening last Thursday, it will therefore be up to the American central bank to remember the good memories of investors… The FedWatch tool gives a 79% chance in favor of a rise rate of 75 points and only 21% chance of seeing a rise of 100 points.
After Peter Kazimir, member of the Governing Council, who indicated on Friday that the ECB could again raise its interest rates by 25 or 50 basis points in September, Christine Lagarde herself stepped up to the plate explaining that the European Central Bank (ECB) will raise interest rates until inflation returns below its 2% target, “We will raise interest rates for as long as it takes to bring the inflation to our target”, explained the President of the ECB in an interview with Funke Mediengruppe.
RISING VALUES
* Orange (+1.7% to 10.28 euros) and Masmovil, which entered into exclusive negotiations on March 8 with a view to merging their activities in Spain, are concretizing their discussions by signing a firm agreement. The combination of the activities of Orange Spain and Masmovil will take the form of a 50-50 joint venture jointly controlled by Orange and Masmovil (Lorca JVCO). Both partners will have equal governance rights in this new joint venture.
* Bank stocks benefit from the continued normalization of monetary policies: BNP Paribas, Societe Generale and Agricultural credit increase by 1 to 2%.
* TF1 (+1.3%) entered into a global partnership with the French Football Federation and UEFA, through the acquisition of a series of linear and non-linear rights. These rights are supplemented by numerous editorial enhancements demonstrating the Group’s desire to strengthen its coverage and adapt it to new uses. TF1 thus acquires, exclusively from UEFA, all the rights to the matches of the French team: Nations League, friendly matches, qualifying matches for Euro 2024, the 2026 World Cup and the Euro 2028. TF1 will also have exclusive unencrypted rights to the 25 most beautiful posters of UEFA Euro 2028.
* Plastic Omnium (+4.5% to 19 euros) announced economic revenue growth of 4.3% in the 1st half of 2022 compared to the 1st half of 2021, despite a market down -1.2%, online with the company’s volume forecasts (H1 2022 volumes equivalent to H2 2021) and a 1.6 point better performance compared to the market at constant scope and exchange rates (lcc) in the 1st half of 2022 compared to the 2nd half of 2021. The operating margin for the first half of 2022 represents 4.6% of sales and Plastic Omnium confirms that it is aiming for between 5% and 6% this year.
* Forvia also gained 6% to 18.56 euros. The group, which completed the takeover of the German automotive lighting group Hella last January, reported consolidated operating profit of 426 million euros for the first 6 months of 2022, or 3.7% of sales. Forvia also recorded a turnover of 11.62 billion euros in the first half. The annual forecasts are confirmed.
FALLING VALUES
* Eutelsat Communications (-16% to 8.74 euros) confirmed that it had entered into discussions with its co-shareholders in OneWeb, with a view to a possible merger of the two companies by exchange of shares. This combination would create a global leader in connectivity with complementary GEO/LEO businesses. The combined entity would be the first multi-orbit satellite operator offering integrated GEO/LEO solutions, and would be uniquely positioned to address the booming connectivity market, estimated at $16 billion by 2030. OneWeb, one of only two global LEO networks, whose service is due to be fully deployed in 2023, has seen strong momentum in recent months. Under the terms of the proposed transaction, shareholders of Eutelsat and OneWeb would each hold 50% of the shares of the combined group. The transaction would be structured as a contribution, by OneWeb shareholders, of their stake in OneWeb to Eutelsat, in exchange for newly issued Eutelsat shares. Any combination would be subject to, among other conditions, the required prior approval by the majority of Eutelsat shareholders and the obtaining of all competition and regulatory authorizations (including foreign investment ).
* ADP Group lost 2.3% to 123.2 euros. RBC prudently went back from ‘outperformance’ to ‘underperformance’ on the manager of Aéroports de Paris by targeting a price of 115 euros.