THE TREND
(Boursier.com) — After last week which saw the CAC40 finish five sessions in the red, will the Paris stock exchange manage to do the opposite in the green? It is in any case for the moment a fourth session of increase which guides the CAC40 around 7,325 points this Thursday noon (+0.55%).
Invited to the European Central Bank’s annual forum in Sintra, Portugal, Federal Reserve Chairman Jerome Powell reiterated on Wednesday that most members of the US central bank expect two more rate hikes this year and he did not ruled out a further hike in July. ECB President Christine Lagarde confirmed expectations of a ninth consecutive eurozone rate hike in July. However, the markets seem to be adjusting to this scenario, which was already largely anticipated.
The continuation of the takeover bids brings a new catalyst to the trend with a very generous offer offered to the software publisher Esi Group.
RISING VALUES
* Leading the CAC40, Renault gained 6% to 38.65 euros. The group has revised its financial outlook for the 2023 financial year upwards and expects an operating margin of between 7% and 8%, compared to greater than or equal to % previously. Renault also expects Automobile operating free cash flow to be greater than or equal to 2.5 billion euros (versus greater than or equal to 2 billion euros previously). “This revision is mainly explained by the quality of its sales mix in connection with the success of new launches and the continuation of the commercial policy focused on value”, comments the group. Renault Group forecasts for the first half of 2023 a Group operating margin above 7% and Automotive operating free cash flow of around €1.5 billion including €600 million in dividends from Mobilize Financial Services .
* Orange (+0.8% to 10.6 euros): the Board of Directors agrees to enter into exclusive negotiations with BNP Paribas in order to define a referencing partnership concerning the customer portfolio of Orange Bank in France and to develop financing solutions for mobile terminals.
* ESI-Group jumped nearly 50% to 149 euros, the price adjusting to the takeover price of 155 euros announced by Keysight Technologies. ESI Group’s Board of Directors unanimously welcomed the proposed transaction.
* Engie earns 4% to 15 euros. Belgium has reached an agreement with Engie to extend the life of the country’s nuclear reactors by ten years. Brussels had originally planned to phase out nuclear power in 2025, but Ukraine’s invasion of Russia and the ensuing energy crisis prompted the Belgian government to revise its plans in order to be less dependent on Russian natural gas. The lifespan of the two most recent Belgian reactors, Doel 4 and Tihange 3, will thus be extended, according to the agreement concluded with Engie which must be implemented at the end of July…
FALLING VALUES
* Casino collapsed by 31% this Thursday, to 5.15 euros, after a low point hit at 4.69 euros, while the group warned of a risk of massive dilution for shareholders as part of the financial rescue plan of the distribution group. Following on from its press release of June 26, Casino thus announced to the parties involved in the conciliation that it considers it necessary to convert all of the unsecured debt instruments and between 1 billion and 1.5 billion euros into capital. secured debt (RCF and Term Loan B), in order to have a debt structure compatible with the cash generation forecast by the 2023-2025 business plan. The covered bonds issued by Quatrim would be subject to rescheduling and reimbursement using the sale proceeds of the real estate assets securing these bonds.
* Vivendi fell 0.7% to 8.39 euros, while Credit Suisse adjusted the cursor from 13.1 to 12 euros on the title with an opinion that remains to ‘outperform’ on the file.
* Orpea loses 12% under 2 euros. Orpea will apply to the Commercial Court of Nanterre for the decree of the accelerated safeguard plan by interclass forced application. If the Court considers that the legal conditions are met, Orpea could finalize its financial restructuring during the second half of 2023, in accordance with its corporate interest. Orpea will then be able to continue implementing its Refoundation Plan. Insofar as the draft accelerated safeguard plan has not been approved by all the classes of parties affected by the majority required, and in the event that the plan is stopped by the Court, the existing shareholders should hold , after completion of the capital increases and in the absence of reinvestment, approximately 0.04% of the company’s capital. The theoretical value of the share would also stand at approximately 0.02 euro.