Mid-session Paris: the CAC40 rises again, at its highest for 7 months


THE TREND

(Boursier.com) – The CAC 40 camped in the green this Thursday noon, up 0.55% to 6,715 points, the highest since last April, but in a calm market on this Thanksgiving day in United States, while Wall Street will remain closed for the day. The minutes of the last meeting of the US Federal Reserve confirmed analysts’ slightly more flexible expectations last night, enough to support the trend a little more. The publication period for the quarterly accounts of listed groups is coming to an end, which also explains the low volumes traded on the markets currently… Note, however, the new turmoil surrounding Elior and Derichebourg with a view to an operation finance in preparation.

ECO AND CURRENCIES

The minutes of the Fed’s last monetary meeting were therefore announced on Wednesday evening. A “substantial majority” of the members of the US Federal Reserve’s monetary policy committee thus estimated at the November 1-2 meeting that it would “probably soon” be appropriate to slow the pace of central bank rate hikes. … The Fed had raised its main interest rate by three-quarters of a point after the meeting to curb inflation, but suggested that future increases in the cost of credit could come at a slower pace.
“A slower pace would allow the FOMC to better assess progress toward its goals of full employment and price stability,” the “minutes” read, confirming recent sentiment among analysts who see the U.S. central bank ease off on the pace of future rate hikes…

“Uncertainty about the lags and magnitude of the effects of monetary policy actions on economic activity and inflation were among the reasons cited,” the statement added.
The minutes also point to an emerging debate within the Fed over the risks that a rapid tightening of monetary policy could pose to economic growth and financial stability, although FOMC members acknowledge that they have seen little tangible progress on inflation and that rates need to rise further. While “a few participants” felt that a slower rate hike could reduce risks to the financial system, “a few others” noted that any slowdown in rate hike policy would have to wait “for more concrete signs of a significant reduction in inflationary pressures”. Markets are now pricing in a half-percentage-point rate hike after the next FOMC meeting on December 13-14…

The euro climbs to $1.0415 this afternoon. The barrel of Brent is trading in sharp decline below $85.

RISING VALUES

Following recent press articles and following the announcement made on July 4, 2022 by Elior (+11%) concerning the review of its strategic options, the group Derichebourg (+7%) confirms, in this context and among all the options under study, the existence of discussions with Elior for the possible contribution of its multiservices branch. To date, however, there is no certainty as to the outcome of these discussions and the conclusion of a firm agreement relating to this contribution. In any event, Derichebourg confirms that it has no intention of filing a takeover bid for Elior. No further comment will be made until an agreement is reached or discussions are completed…

Recall that according to Bloomberg, the collective catering group Elior is discussing a possible merger with its largest shareholder Derichebourg by seeking to consolidate its balance sheet in a context of strong inflationary pressures.
The Elior group announced a third annual loss since the start of the COVID pandemic on Wednesday, as the group continued to suffer from often difficult contract renegotiations in France, while teleworking and flex-office took hold in many companies. Group CEO Bernard Gault said Elior will finalize its strategic options in the coming weeks…

“The review of strategic options announced on July 4 should be completed in the coming weeks. The Board of Directors is finalizing the examination of several scenarios with a view to choosing the one that will optimize the group’s strategic positioning and improve its financial situation”, added commented the service group. According to Bloomberg, the merger would see Derichebourg transfer assets to Elior in exchange for an increase in its stake to some 24% of the capital. Remember that Derichebourg increased its stake in Elior to 19.6% this year, thus becoming the group’s largest shareholder.

McPhy: +5% with Verimatrix

Atos: +4% followed byCatana, Gl Events andUbisoft

Orpea: +3.5% withFNAC-Darty, Elis,Seb andFaurecia

CDL (+2.5%) generated in the first half of its 2022-2023 financial year a gross operating surplus of 240.1 ME against 198.3 ME in the 1st half of the previous financial year, up 21%. It represents 8.8% of turnover for the period compared to 8.3% for the comparable period. Current operating profit amounted to 120.9 ME (4.4% of turnover compared to 4.3% over the same period of the previous financial year). The net profit attributable to the Group increased to 93.9 ME against 80.1 ME in the comparable period. LDC had achieved over the period a turnover of 2,735.5 ME, up 14.2% (+13.2% at identical scope and constant exchange rate) over one year. The volumes marketed fell by 3.3% and by 4.2% on an identical basis, but price increases favored invoicing.

Thermador : +2% with Amundi, Teleperformance, Manitou, LNA

Manutan (+1%) generated operating income of 66.6 ME over its 2021-2022 financial year, up 12.4%. The Group’s operating profitability stood at 7.3% compared to 7.2% for the previous financial year. The net result is up by 20.2% to 50.8 ME, ie a net margin of 5.6% of turnover against 5.2% over the previous financial year. Turnover had reached 906.5 million euros against 819.9 million euros the previous year, an increase of +10.6%. This growth is driven by the Business division, which is growing in all geographical areas. The activity of the Local Authorities division remains stable compared to last year. The payment of a dividend per share of 1.80 euros will be proposed to the General Meeting of the company called to be held in March 2023 on the approval of the financial statements for the financial year ending on September 30, 2022.

Voltalia (+1%) announced the signing with Renault (+2%) Group of the largest renewable electricity supply contract (Corporate PPA1) ever signed in France.
The contract covers a total capacity of 350 megawatts representing the production of approximately 500 gigawatt hours per year. Lasting 15 years, this is an unprecedented commitment in France in terms of power.
Committed for more than 10 years to the energy transition, Renault Group has announced its intention to accelerate the decarbonization of its factories in France. The agreement with Voltalia will allow Renault Group to cover up to 50% of the electricity consumption of the manufacturer’s production activities in France in 2027, including Cléon’s electricity consumption as well as all sustainable electricity needs. of the ElectriCity division, the largest and most competitive electric vehicle production center in Europe whose ambition is to produce 500,000 vehicles per year by 2025. With its Renaulution strategic plan, Renault Group confirms its commitments to achieve net zero carbon emissions from its ElectriCity division plants in France in 2025, in Europe in 2030 and worldwide in 2050.

Orange (+0.5%) signed a €6 billion multi-currency syndicated revolving loan with 27 international banks indexed to environmental and social indicators, in order to refinance in advance its syndicated loan maturing in December 2023.
This sustainable refinancing illustrates the Group’s commitments in terms of social and environmental responsibility, with an indexation of the margin to the achievement of objectives relating to CO2 emissions (Scopes 1 & 2, Scope 3) in line with the objective of ‘Orange to be Net Zero Carbon in 2040, as well as professional diversity.

RISING VALUES

Adocia: -1% with Latecoere (-4%) and Genomics

Lectra: -2.5% followed byM&P

Remy Cointreau (-1.5%) achieved consolidated revenue of €867.1 million in the first half of 2022-23, up +21.1% on an organic basis1 (i.e. +54.6% compared to 2019-20). This performance reflects a strong increase in the price-mix effect (+11.4%), in line with the Group’s value strategy, and an increase in volumes (+9.7%). Current Operating Income amounted to €319.3 million, up +27.2% organically and +50.0% as reported. It more than doubled from 2019-20. The current operating margin improved by +1.7 points on an organic basis to 36.8% (+3.8 points as published). The Group intends to continue implementing its strategy, centered on the development of its brands in the medium term and supported by a policy of sustained investment in marketing and communication, particularly in the second half. Consequently, the organic improvement in the Current Operating Margin will be driven by the solid resilience of its gross margin despite an inflationary environment and by strict control of its structural costs. Given the expected phasing effects on the evolution of sales and marketing and communication expenses, the organic improvement in the Current Operating Margin will be mainly driven by the 1st half. The Group expects for the year a favorable effect of its currencies on turnover (between 110 ME and 120 ME) and on Current Operating Income (between 55 ME and 60 ME).

Soitec (-1.5%) Revenue for the first half of the 2022/2023 financial year reached €471 million, up 26% in published data. This increase is the result of growth of 18% at constant scope and exchange rates combined with a positive exchange rate effect of 9%. EBITDA from continuing operations was €167m in the first half of 2022-2023, up 22%, reflecting a slightly lower EBITDA margin at 35.5% of revenue versus 36.8% in the first half of 2021-2022. Profitability factors in an unfavorable exchange rate effect and an increase in costs linked to inflation. Consolidated net income for the first half of 2022-2023 reached €95 million, an increase of 28%. Equity increased by 138 ME during the first half of 2022-2023 to reach 1,181 ME at September 30, 2022, mainly thanks to the net income generated during the period. The company maintains a positive net cash position of €113 million as of September 30, 2022. Soitec continues to anticipate revenue growth of around 20% for the 2022-2023 financial year at scope and exchange rates. constants. Growth will continue to be driven by increased sales in each of the three end markets. Soitec expects to continue to benefit from the deployment of 5G, an increase in sales for the automotive industry as well as the continuation of sustained market trends in the field of smart devices. Soitec also confirms that its EBITDA margin should reach around 36% of revenue in 2022-2023 thanks in particular to the significant operating leverage the Group should benefit from thanks to the increase in volumes. Soitec anticipates that its industrial performance should remain at a high level despite higher raw material prices and rising energy costs.

Kering (stable) Gucci has announced the departure of its Creative Director Alessandro Michele. At the head of the House’s creation since January 21, 2015, Alessandro Michele has greatly contributed to making Gucci what it is today by bringing his revolutionary creativity while remaining faithful to its well-known codes.



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