(Boursier.com) — THE TREND
The CAC40 raises its head this Friday to end the week in the green after two sessions of decline. The CAC40 regained 1.8% to 5,988 points at noon… The boost came from Wall Street, while at the end of another volatile session last night, American stocks ended up sharply, the investors are still trying to adapt to the new monetary and economic environment, after the announcement of a sharp slowdown in activity in the United States and Europe in June. Fear of a recession led to a flight to the less risky bond markets, driving down yields on long bonds.
ECO AND CURRENCIES
Operators have carefully followed the words of Federal Reserve Chairman Jerome Powell, who was heard by the Senate on Wednesday and by the House of Representatives on Thursday: He showed himself again very firm in the face of soaring inflation, saying that the Fed’s determination to control prices was “unconditional”, while admitting that the fight against rising prices was accompanied by a risk of rising unemployment. The day before, before the Senate, the boss of the Fed had admitted that it was “possible” that the rise in rates would lead to a recession. “It is not at all the desired effect, but it is certainly a possibility”, he added, acknowledging that a soft landing was going to be “very difficult”.
The Fed leader reiterated that the bank’s intention was to achieve a soft landing, even if the path is getting more and more difficult. He admitted that in hindsight, inflation has been underestimated by the US central bank. To calm prices, “we have no precision tool” other than raising rates, he explained, adding that he was aware that monetary tightening should reduce growth and affect employment. “It is significantly more difficult to reduce inflation without impacting the labor market,” he admitted…
Recall that the Fed carried out a rate hike of 75 basis points last week (the largest hike since 1994), which took its federal funds rate between 1.5 and 1.75%, in order to counter inflation, which reached 8.6% over one year in May, the highest for 41 years in the United States.
Jerome Powell and other central bank officials have indicated they will hike another 50bp or 75bp at the next July meeting… New economic projections released on June 15 showed that the Fed expects the fed funds rate to reach 3.4% at the end of 2022, which would be the highest level since 2008then 3.8% at the end of 2023.
Jerome Powell confirmed that the pace of further rate hikes will depend on indicators and how the economic outlook evolves. “We will make our decisions meeting after meeting,” explained the leader of the American central bank.
Oil stands at $111 for Brent. The euro is stagnating at 1.0540/$.
Genomics up 8% with Genomic (+7%) and Adocia (+5%)
Wavestone : +3% with Gensight followed by Moncey
Pernod Ricard : +3.5% with Teleperformance, Assystem
Navya (+3%) has just signed, on June 23, 2022, a memorandum of understanding with the Ministry of Transport and Telecommunications of the Kingdom of Bahrain, to support the deployment of autonomous vehicles in Bahrain.
Dassault Systemes : +3% with Carrefour, Hermès, Voltalia, Neurones
Sanofi (+2.5%) and GSK today announced positive data from the trial of their bivalent D614 and Beta (B.1.351) vaccine. Sanofi-GSK’s vaccine is the first candidate to demonstrate its efficacy, in a placebo-controlled trial and in a context of high circulation of the Omicron variant. The vaccine showed a favorable safety and tolerability profile.
Earlier this month, Sanofi announced positive data from two trials of its next-generation COVID-19 booster vaccine candidate formulated with the Beta variant antigen and GSK’s pandemic-use adjuvant. All of these data, which will be submitted to the regulatory authorities, confirm the potential of Sanofi-GSK’s next-generation booster vaccine containing the Beta antigen to constitute a relevant response to public health needs.
Amundi : +2.5% with Dior, Elior, Legrand, Schneider, BioMerieux, Essilor, Legrand
Danone : +2% with Quadient, Interparfums, Korian, Crédit Agricole, Eramet, Technip Energies, Dassault Aviation, Air Liquide and Seb
Nexity (+1.5%) signed an agreement to acquire a 55% stake in the capital of the Angelotti group, the regional leader in property development and promotion in Occitania. The balance of the securities remains held by the current managers.
Created in Béziers in 1981 by Louis-Pierre Angelotti as a specialist in land development – sale of building land, development of new districts, the Angelotti group has gradually completed its offer with a residential development activity from 2008. The group s has established itself as a leading player in the markets of Montpellier, Béziers, Nîmes and Perpignan, regions with significant demographic dynamism (among the highest population growth rates in France between 2013 and 2019). Its development continues today in the West towards Toulouse and in the East in the PACA region.
Valneva (stable) and Pfizer Inc. announce that the capital subscription operation for Valneva announced on June 20 has been completed. Pursuant to a share subscription agreement, Pfizer has invested 90.5 million euros ($95 million), or 8.1% of Valneva’s capital at a price of 9.49 euros per share, through a reserved capital increase.
Valneva plans to use the proceeds of this investment to fund part of its contribution to the Phase 3 development program of the Lyme disease vaccine candidate VLA15.
Pfizer expects to initiate the Phase 3 study of VLA15 in Q3 2022.
Abionyx : -4% followed by Rallye, Plastivaloire
Figeac Aero : -2.5% with Valeo, Forsee Power
Atos : -2% with DBV and S30
Stellantis (-1%) enters the capital of Vulcan Energy Resources for an amount of 50 million euros, while the two groups extend their initial supply agreement to 10 years. This investment is intended to support Vulcan’s planned production expansion from its brine deposit located in the Upper Rhine Valley in Germany. Vulcan, which already generates geothermal energy from this deposit, plans to produce lithium hydroxide without using fossil fuels and with a neutral carbon footprint as part of its Zero Carbon Lithium project. “This highly strategic investment in a leading lithium production company allows us to create a robust and sustainable value chain for the production of batteries for our electric vehicles in Europe,” said Carlos Tavares, CEO of Stellantis. “We continue to build strong relationships with partners who share our values and strive like us to fight global warming while providing our customers with clean, safe and affordable mobility solutions.”
Casino : -1% with CGG, Renault, Faurecia, Engie