THE TREND
(Boursier.com) — The rise continues for the CAC40, which again exceeds 7,000 points and brings its progression to more than 8% since the beginning of January. The index of the Paris Stock Exchange thus progressed by 0.6% at the end of the morning around 7,020 points. Yesterday, the CAC40 had already risen to 7,015 points in session but failed to stay above 7,000 points at the end.
The publication of consumer prices in the United States yesterday showed a deceleration in inflation in December, to 6.5% year on year after a peak of 9.1% in June, confirming the scenario of a possible easing. rates… From one month to the next, the CPI even fell (-0.1%) last month for the first time in more than two and a half years. However, the dynamism of the labor market in the United States, with weekly jobless claims posting an unexpected decline on Thursday, continues to arouse caution, with some analysts believing that the cost of credit will have to be further tightened for it to have an impact on employment.
In France, inflation has slowed to 5.9% over one year in December, according to final data published this morning by INSEE, which confirms its first estimate. Compared to November, the consumer price index (CPI) fell 0.1% last month, a development also in line with estimates.
The fourth quarter results of Wells Fargo, Citigroup, Bank of America and JP Morgan are expected before the opening of the session on Wall Street and could influence the end of the Paris session.
RISING VALUES
* Ubisoft timidly resumed 2% to 21 euros after its sharp drop the day before linked to profit-warning. The concert composed of the Guillemot family group and the Hong Kong company Tencent Mobility Limited declared to the AMF, as a regularization, to have crossed upwards, on December 20, 2022, the threshold of 25% of the capital of Ubisoft. The concert specified that it held, as of January 11, 2023, 25.37% of the capital and 29.68% of the voting rights. The members of the concert indicate that the declared threshold crossing results from the acquisition on the market of Ubisoft shares by Tencent Mobility Limited, financed by its own cash. Members of the expanded gig are “planning to continue shopping.” However, the concert does not plan to cross the threshold of 29.9% of the capital and voting rights and does not intend to take control of Ubisoft. The concert supports the strategy currently being implemented by Ubisoft.
* Air France-KLM confirms its rebound yesterday with a title that wins more than 6% to 1.52 euro. After the favorable preliminary publication of American Airlines on Thursday, and pending that of Delta Air Lines later, the title of the Franco-Dutch company is supported by several analysts’ notes. Davy Research initially raised its recommendation on the stock to ‘neutral’, targeting 1.42 euros. UBS, for its part, went to the ‘purchase’ on the action while raising its target from 1.75 to 2 euros. “With the potential for upward revisions at the consensus level, we view the current price as an attractive entry point,” the Swiss bank said. Finally, Citi reiterated its ‘buy’ advice and its target of 1.85 euro.
* Fourth positive session for TotalEnergies which finds the 60 euros (+ 1.6% to 60.4 euros). The barrel of Brent continues to recover, close to 85 dollars.
* Capgemini wins 1.4% to 171.3 euros at the end of the morning in Paris. Invest Securities raised its recommendation on the SSII to ‘buy’ while raising its target from 178 to 200 euros. Like other Tech best-in-class in Europe, CapGemini suffered on the stock market in 2022 (-18 bps), with impressive operational performance taking a back seat to rising rates, says the broker. If the latter was tempted, at the end of October, to remain ‘neutral’ until the publication of the 2022 results in February to have more visibility on 2023, the continuation of the recent underperformance (-7pts over 1 month), combined with the easing of the risk premium and interest rates lead it to go on the offensive. The analysis thinks that the group should be able to resist much better than in previous recessionary cycles.
FALLING VALUES
* Biggest declines in the CAC40 today, Stellantis and Renault lose 3 to 4%. The auto sector is rocking, with price cuts granted by Tesla around the world heightening fears weighing on demand. The Stoxx 600 Automobiles & Parts index lost 2% in the morning, by far the worst performing sub-index within the broad European index. Tesla lowered the prices of its flagship vehicle models in the United States on Thursday evening, the electric carmaker’s website shows, with reductions ranging from 6% to 20% on the Model 3 and Model Y, according to calculations made. by Reuters. These new prices do not take into account the federal credit of 7,500 dollars granted since the beginning of the month for the purchase of a large number of electric vehicles.
* Bouygues drops 2.6% to 30.1 euros, weighed down by an analyst’s note. Morgan Stanley has indeed downgraded the conglomerate to ‘underweight’ by targeting 30 euros. Bouygues’ free cash flow is stuck in a deteriorating cycle that shows no signs of reversing, the bank says. The latter still sees a downside risk for the title and little attractiveness for the valuation. The 6% dividend yield looks attractive, but not enough to justify waiting for cash flow to improve sufficiently.