THE TREND
(Boursier.com) — Up slightly this morning to 7,070 points, the CAC40 is now down 0.4% around 7,020 points. Luxury is particularly weighing on the trend after a strong rebound last week since the CAC40 had recovered 3.7%, mainly thanks to the scenario of the end of monetary tightening by the major central banks and the prospect of a lasting break on the cost of credit.
Crude prices are rebounding at the start of the week, supported by announcements from Saudi Arabia and Russia. These two major exporters of black gold reaffirmed on Sunday their intention to continue reducing their extractions until the end of the year. The barrel of Brent for January delivery advances 1.8% to $86.4 in London while the barrel of WTI for December delivery also gains nearly 2% to $82 in electronic exchanges on the Nymex.
RISING VALUES
* Air France-KLM gained 2.4% to 12.05 euros. The Scandinavian airline SAS announced that it had reached an agreement with the consortium formed by Air France-KLM, Lind Invest, the Castlelake investment fund and the Danish State, for restructuring aid amounting to 13.2 billion Swedish crowns (1.13 billion euros). The agreement includes Castlelake providing SAS with a loan to replace financing previously provided by the American private equity group Apollo, the airline said. The consortium increased its investment proposal by $25.26 million. Remember that the largest Scandinavian carrier filed for bankruptcy protection in the United States in mid-2022 after battling for years against high costs and low demand due to the health crisis. SAS said in October that Castlelake would take a stake of around 32%, Air France-KLM will hold around 20%, Lind Invest 8.6% and the Danish state around 26%.
* Thales gained 0.9% to 136.3 euros. Deutsche Bank adjusted the slider from 156 to 158 euros (‘buy’).
FALLING VALUES
* Kering loses 1.7% close to 400 euros. HSBC has reduced the target from 485 to 440 euros (‘keep’).
* LVMH And Hermes fell by around 1%.
* Vivendi (-1.4% to 8.54 euros) says it deeply regrets that the Board of Directors of Telecom Italia accepted KKR’s offer for the acquisition of the TIM network, without having previously informed and requested a vote from shareholders of Telecom Italia, thereby violating applicable governance rules.
* Sharply increasing at the opening, Orpea lost 3% close to 1 euro after its quarterly update and the announcement of the postponement of its medium-term objectives by one year. The specialist in caring for dependents has indicated that, beyond 2023, he is counting on a gradual increase in the occupancy rate of retirement homes in France and a gradual attenuation of the effects of the inflation, on an EBITDAR of E1.2 billion in 2026, compared to 2025 initially targeted. Over the three months ended at the end of September, the firm reported a turnover of 1.313 billion euros, up +11.1% year-on-year, including +10.2% organically. Over the entire 2023 financial year, management now anticipates a turnover of around €5.2 billion for an occupancy rate of 84% (compared to 81.6% in 2022). The EBITDAR would stand at around 710 ME, i.e. a level located at the bottom of the range of 705 to 750 ME communicated on July 13.
* Stellantis fell 0.9% to 18.5 euros. Nomura lowered its target from 31 to 27 euros (‘buy’).