THE TREND
(Boursier.com) — The CAC40 ultimately failed to reach 8,000 points on Monday but it is on track to get there this Tuesday. The Parisian index increased by 0.3% at the end of the morning to just over 8,020 points.
The positive trend remains fueled by the hope of a rate cut by the Fed once or twice this year, in September and perhaps December, while in the euro zone, the date of June 6 for a first easing still holds the rope after the monthly PMI figures, published Monday.
Wall Street remains quite hesitant before the market this Tuesday, following a generous rebound posted over the two previous sessions.
RISING VALUES
*Thank you Xi Jinping! At the top of the charts, Remy Cointreau And Pernod Ricard climbed by 8% and 3% respectively, the two spirits groups benefiting from the latest statements by the Chinese president on the subject of the dispute over French cognac. “I also thank the president for his openness regarding the provisional measures on French cognac and his wish not to see them applied,” affirmed Emmanuel Macron during a joint press conference with his Chinese counterpart at the Elysée, making reference to an investigation in China for alleged competition infringement on spirits. A French diplomatic source also clarified to ‘Reuters’ that China would not introduce protective customs duties on cognac immediately. China opened an anti-dumping investigation into brandy imported from the European Union in January, following a complaint filed by the China Alcoholic Beverage Association on behalf of the domestic brandy industry. At the time, the French cognac industry association said it would fully cooperate with Chinese authorities, but believed the investigation was linked to a broader trade dispute, going beyond that of the spirits market. By the end of November 2023, China had imported $1.57 billion worth of wine spirits, and France accounted for 99.8% of all EU brandy exports, according to customs data Chinese.
* Solvay soared 8% to 32.8 euros in the morning, to a historic high, after a solid quarterly publication. The chemist confirmed, for the whole of 2024, to target organic growth in underlying EBITDA of -10% to -20% (which translates into a range of 925 million to 1,040 million at a EUR/USD exchange rate of 1.10), and a Free Cash Flow of more than 260 million euros.
* Beneteau rises by 2.5% to 12.9 euros even though the group only achieved €229 million in turnover in the first quarter of 2024, down 39% compared to a high comparison base (+57% in the first quarter of 2023). Beyond base effects, Beneteau emphasizes that this variation in activity is mainly linked to the variation in stocks at dealerships. In this first quarter, which is not very representative in view of the seasonality of sales to boaters, the Engine activity, down 50% in 2024 after growth of 47% in the first quarter of 2023, is the most affected by the slowdown in demand. and the network destocking effect. Although the number of units delivered fell by 65% over the quarter, the move upmarket across all Dayboating and Real Estate on the Water segments limited the effects on turnover. The reception of the new models, presented at spring shows or during private events, as well as the industrial adaptation measures taken at the start of the year, allow the Boat division to maintain an operating margin forecast of between 7 and 10% in 2024, despite the market slowdown.
* Saffron gains 0.8% to 208 euros. Deutsche Bank adjusted the target from 208 to 210 euros (‘hold’) and Barclays revalued Safran from 180 to 240 euros (‘overweight’).
* Ubisoft stands out with an increase of more than 5% to 22.75 euros. The buyer flow on the file is linked to a note from Stifel which raised its recommendation to ‘buy’, citing the upcoming releases of the game Star Wars Outlaws and the next opus in the Assassin’s Creed series.
FALLING VALUES
* The only really significant drop on the CAC40, Bouygues drops 2.4% to 34.5 euros, sanctioned after a disappointing publication. The conglomerate reported a net loss of 146 million euros in the first quarter for a turnover of 12.3 billion euros, an increase of 3%. Current operating income from activities comes to 26 million euros compared to a consensus of 34 million euros. “As every year, the Group’s results for the first quarter are not representative of those for the first half and the year, mainly due to the seasonality of Colas’ activities, and to a lesser extent those of Equans”, nevertheless recalled Bouygues. The group has confirmed that it is targeting a slight increase in turnover and current operating income from activities (ROCA) for 2024 compared to 2023.