(Boursier.com) — THE TREND
The CAC40 is heading for a new weekly drop. Down 1.19% to 5,848 points at midday, the Parisian index currently shows a deficit of around 3.8% over five sessions, and more than 18% since January 1. Risk aversion continues to be strong in trading rooms after the almost synchronized rise in interest rates by several major central banks, including the US Federal Reserve.
At the same time, the signs of a deterioration in the economic situation, or even of a recession, are growing all over the world with multiple warnings from major institutions and companies. In Europe, the flash PMI indices released in the morning showed that overall activity in the euro zone fell for a third consecutive month in September, with the decline even accelerating compared to August.
In this context, investors continue to take refuge in the dollar and the bond market to the detriment of equities… The dollar index gained another 0.8% this Friday (nearly 112), its highest for 20 years, while that the euro is sinking towards $0.97. On the debt market, the yield of the ten-year German Bund, a benchmark for the entire euro zone, crossed the 2% mark this morning for the first time since 2013, at 2.011%.
Black gold prices are also losing ground, penalized by fears weighing on demand. A barrel of Brent from the North Sea fell 2% to $88.6.
Business news is dominated by speculation around M6, the forthcoming arrival of Rodolphe Belmer at the head of TF1, the sharp rise in Airbus, which is organizing an investor day, and some recently received results from S&Midcaps (Akwel, Alten, Lumibird…).
RISING VALUES
* M6 soared 8.8% to 14.5 euros, again driven by rumors of developments in its funding round. While RTL Group (Bertelsmann) wants to get rid of its 48.26% as quickly as possible, MFE will present a non-binding cash offer on Friday to take over this stake, reports ‘La Stampa’, without citing its sources. The offer of the firm of Silvio Berlusconi takes into account the new economic context, simply specifies the Italian daily. Time is running out for the German group wishing to refocus on the countries where it is the leader. The renewal of the frequency of the M6 channel is indeed planned for next May. However, French law prohibits the owner of the channel concerned from selling it within 5 years of this renewal!
Silvio Berlusconi is not alone on the spot. According to Thursday’s ‘Financial Times’, a consortium of major French entrepreneurs, including Rodolphe Saadé, Stéphane Courbit and Marc Ladreit de Lacharrière, have notably come forward. Other billionaires such as Vincent Bolloré, Daniel Kretinsky or even Patrick Drahi would also be interested in M6.
* Airbus climbed nearly 3% to 94.8 euros as the aeronautics giant organized an investor day in Toulouse. The group first hinted once again that it could launch an enlarged version of its A220 while specifying that it would not take a hasty decision. An elongated version of the device will make sense, but “we don’t want to be right too soon”, declared Guillaume Faury, the general manager of the European aircraft manufacturer. While more than 223 aircraft are already in service, Airbus reaffirms that it is aiming for the break-even point for its A220 program (inherited from Bombardier) by 2025. The A350 will soon reach a break-even point at a production rate less higher than initially expected, according to the leader.
On the investor side, Dominik Asam (CFO) has pledged to increase shareholder return as the company aims to pay dividends at the upper end of its target range. “Once we reach the net cash target of €10 billion, assuming no significant M&A deals, we will discuss other ways to return money”, emphasizes Dominik Asam, while specifying that the dividend will remain the preferred means of returning cash in the future. “A share buyback is one of the instruments available, but we are not there yet.”
* SQLI stands out the day after its half-year point with a title up 1.9% to 37.5 euros. The digital services group generated a net profit of 2.6 ME over the first six months of the year against 2.8 ME a year earlier for a consolidated turnover of 124.5 ME, up 9 .4% in published data. At constant exchange rates and in the absence of a scope effect, invoicing was up by +8%. The current operating result is at 11.2 ME or 9% of turnover. It was 6.6 ME a year earlier…
* TF1 nibbles 0.2% to 6.5 euros. Gilles Pélisson could not resist the failure of the merger between TF1 and M6. The CEO of the ‘one’ will be replaced by Rodolphe Belmer as of February 13, 2023. Until then, a Board of Directors will validate the separation of the positions of Chairman and Chief Executive Officer on October 27. Gilles Pélisson will then occupy the position of Chairman, the former boss of Canal+ becoming Managing Director. In mid-February, Gilles Pélisson will join the Bouygues Group as Deputy Managing Director of the Bouygues Group in charge of Media and Development.
FALLING VALUES
* Lumibird fall of more than 8% to 16.1 euros, weighed down by its intermediate results. While the group’s consolidated turnover amounted to 84 ME, up 11% and 9% at constant scope and exchange rates, Lumibird recorded a gross operating surplus of 11.2 ME, i.e. 13.3% of revenue, compared to 19% a year earlier, under the effect of the structuring of the organization with a view to a higher level of activity in 2022 and beyond. Current operating income for the half-year amounted to €3.9 million compared to €8.6 million in the first half of 2021.
* Alten yielded 2.4% to 11.8 euros despite the publication of half-year results up sharply while the pace of activity remained very strong. Operating profit from activity amounted to 208.6 million euros over the first six months of the year, i.e. a jump of 52.1% over one year, for revenues of 1.86 billion euros (+30 .9%). Business growth was +18.4% in France and +38% internationally. At constant scope and exchange rates, growth was 19.8% (14.5% in France and 22.8% outside France). All business sectors are growing and have exceeded their pre-crisis level, including Civil Aeronautics and Automotive. Most geographic areas are showing strong organic growth, above 15%. Only Scandinavia and Switzerland (7% of turnover in total) have growth of less than 5%.
* Akwell fell 2% to 14.8 euros, weighed down by disappointing results. The automotive supplier saw its gross operating surplus decrease by 34.6% to 42.3 ME in the first half, its current operating profit falling by 64.6% to 17.7 ME, i.e. a current operating margin of 3 .6%, down 6.7 points. The group share of net income fell to 1.9 ME against 38 ME.
* Veolia returns 1.7% to 21 euros. Citi started tracking the stock with a ‘neutral’ rating and 21 euros in sight. The bank says the health of the economy will likely overshadow the environmental services company’s earnings growth, which will ultimately weigh on the stock. Citi points out that the market has so far been ruthless towards Veolia and needs to see evidence of economic resilience. An external growth strategy could help support the objectives.