THE TREND
(Boursier.com) – The CAC40 lost 0.7% at the end of the morning on Friday, back to 7,150 points after starting the session on a slightly more pronounced decline. The initial progress from the beginning of the year is now erased. Investors remain cautious after the statements of several officials of the US Federal Reserve confirming their desire to raise interest rates in March to stem inflation.
Future Fed Vice Chair Lael Brainard cast a chill when she told the Senate that the institution had planned “several rate hikes over the course of the year” and that it could take action” as soon as our purchases are completed”, so potentially as early as the meeting in mid-March.
The latest intervention is that of the President of the Chicago Fed Charles Evans, who estimated Thursday that inflation in the United States (which reached 7% over one year in December 2021), will return to a more moderate pace of 2.5% by the end of 2022, as supply chains return to their pre-health crisis organization. In a discussion hosted by the ‘Milwaukee Business Journal’, Mr Evans, who does not have a vote this year on the Fed board, said that “the tide will turn. come back down and should probably return to 2.5% for the consumer price index” by the end of the year.
The fourth quarter earnings season kicks off on Wall Street with the banks. JP Morgan, Citigroup and Wells Fargo will publish before market this Friday, with also First Republic and the asset management giant BlackRock. Bank of America, Goldman Sachs and Morgan Stanley will post next week.
RISING VALUES
* Renault extends its rebound (+0.8% to 34.2 euros). The diamond manufacturer yesterday declared itself confident for 2022 thanks to the effects of its restructuring and the renewal of its range, which should help it offset the persistent crisis in semiconductors. “We are relatively confident for 2022 but we know that it is a fairly volatile and uncertain world,” said general manager Luca de Meo during a press event at the Technocentre. Renault plans to introduce 27 new models by the middle of the decade. The aim is to make the main Renault brand 100% electric by the end of this decade and to develop the carmaker’s planned electric vehicle and battery manufacturing center in northern France, said Luca de Meo. “People talk about Tesla’s German factory, but ours will be one of the best in Europe.”
* Thermador (+0.7% to 99.2 euros) reported turnover of 486.5 million euros for the year 2021 with sales of 109.66 ME in the 4th quarter. Annual turnover is up by +23%.
* Atos recovered 2% to 32.15 euros but dropped 16% over the week following its profit warning.
FALLING VALUES
* EDF fall of 16% to 8.7 euros. The government has announced an increase in the volume of nuclear electricity sold at a reduced price by the national electrician to its competitors, in order to limit the increase in regulated electricity tariffs (TRV) to 4% on 1 February. A measure that should impact EDF’s 2022 operating profit (Ebitda) by around 8.4 billion euros based on market prices as of December 31, 2021 (7.7 billion as of January 12, 2022). While waiting to know the final impact of these measures based on market prices, the group has withdrawn its 2022 outlook on its Ebitda and its net financial debt.
To make matters worse, EDF has lowered its estimate of nuclear production for this year to 300 – 330 TWh, against 330 – 360 TWh previously. This revision results from the extension of the outage period of 5 reactors in EDF’s French nuclear fleet after the discovery of defects near welds in the safety injection circuit (RIS) pipes. ” The development of the inspection program for the entire nuclear fleet is continuing, gradually integrating the lessons learned from the first appraisals carried out. The impact on EDF’s financial outlook is currently being analyzed. “, specified EDF.
* Elior stumbles 4.3% to 6 euros while Moody’s lowered the credit rating (CFR) of the collective catering group from ‘Ba3’ to ‘B1’ while reducing the associated outlook from ‘negative’ to ‘stable’. “Today’s downgrade reflects our expectation that Elior’s profitability will recover at a slower pace than originally expected in June 2021 due to the rapid spread of the Omicron variant,” said Eric Kang, senior analyst at Moody’s.
* Air France-KLM (-2.20% to 4.15 euros): It was no secret that strategic differences had long opposed Pieter Elbers, the emblematic boss of KLM, to Benjamin Smith, the boss of the group Air France-KLM, which wishes to implement greater integration between the two airlines, the French and the Dutch. The divorce will soon be consummated, KLM having announced Thursday evening that Pieter Elbers will not be reappointed for a third term as CEO in May 2023, stating that this decision was taken in consultation with the person concerned. Mr. Elbers, 51, will have spent eight years at the helm of KLM and thirty years with the Dutch company.
* Kering loses nearly 4% to 660 euros. The interim dividend of 3.50 euros, detached yesterday, will be paid on Monday January 17, 2022 on the positions closed this Friday at the close.