THE TREND
(Boursier.com) — Investors are taking advantage of yesterday’s sharp decline to buy cheaply this morning, which allows the CAC40 to recover more than 1%, around 6,140 points. A rebound despite the fall of the Nasdaq yesterday (-4.29%) and the sharp decline in Tokyo this morning (-2.53%). But basically, tensions remain high with the double threat of rising interest rates and slowing economic growth. However, the sharp rise in bond yields in recent sessions seems to be calming down. It has weighed heavily on investor morale in recent days, like yesterday’s clearance session in Paris (-2.75%), the fourth in a row for Parisian shares.
Atlanta Fed Chairman Raphael Bostic estimated on Monday that the Fed could raise rates by 50 basis points at each of the next two or three monetary policy meetings, before measuring the effects on the economy. inflation and the economy, and to decide whether further tightening will be required. If the Fed proceeded in this way with 3 turns of the screw during its meetings in June, July and September, the “fed funds” rate could be raised between 2.25% and 2.5% at the start of the school year, a level considered by the experts as close to neutrality vis-à-vis the economy.
WALL STREET
Losses mounted in the last hour of trading Monday on Wall Street, with the S&P 500 index ending below 4,000 points for the first time since March 31, 2021, and the Nasdaq dropping 4.3%. Investors gave in to pessimism on signs of slowing Chinese growth and the prospect of tighter monetary policies from central banks.
At the close, the Dow Jones fell by 1.99% to 32,245 points, while the broad index S&P500 plunged 3.2% to 3,991 pts, and that the Nasdaq Compositee, rich in technology and biotech stocks, dropped 4.29% to 11,623 pts. Last week, the S&P 500 and the Nasdaq posted their 5th consecutive weekly decline for the first time in about 10 years. Since the start of the year, the three indices have lost 11.2% for the DJIA, 16.2% for the S&P 500 and 25.7% for the Nasdaq respectively.weighed down by fears of stagflation and higher rates.
ECO AND CURRENCIES
French GDP growth, which had been zero in the 1st quarter, should restart in the 2nd quarter despite the consequences of the Ukrainian conflict and the coronavirus crisis, to reach a modest increase of 0.25% compared to the 1st quarter, according to the ‘Insee.
Europe:
– Italian industrial production. (10:00 a.m.)
– German ZEW Economic Sentiment Index. (11:05 a.m.)
– European ZEW index of economic sentiment. (11:05 a.m.)
The euro/dollar parity reached $1.0579 this morning. A barrel of Brent is trading at $104.74. An ounce of gold is traded at $1,865.
RISING VALUES
Renault (+ 1.30% to 22.74 Euros): Mobilize, the Renault brand which offers flexible services around mobility, today presents its strategy to project the group beyond the automobile, generate revenue and achieve the objective of achieving 20% of Renault Group’s turnover by 2030. Thanks to the use of data, Mobilize can offer mobility, energy, financing, insurance , payments, maintenance and reconditioning, and reduce the cost of use for its customers. “These services are even more efficient when they rely on vehicles specially designed for new forms of mobility by the Mobilize teams,” explains the Renault subsidiary. The entity, excluding Mobilize Financial Services, is aiming for double-digit profitability from each of its activities by 2027, with a target for operating margin at breakeven in 2025.
rally (+0.65% to 3.15 Euros) announces that the Paris Commercial Court approved, on May 9, the modification of its safeguard plan, authorizing the effective completion of the global offer to buy back its debt not security launched on March 23. As a result, the settlement-delivery of the buyback offer will take place on May 16. Rallye will spend €36.6 million in cash to acquire a nominal amount of unsecured debt of €242.3 million, representing a reduction in its total net financial debt of approximately €234.8 million (including accrued interest).
Veolia (+1.60% to 25.67 Euros) and Saur have just signed a unilateral purchase agreement under which Saur has undertaken to acquire Veolia’s activities in mobile water services in Europe, which are part of the antitrust remedies required by the European Commission. The amount of the sale of the assets in question is at around 190 million euros.
trigano (+7.30% to 123.90 Euros) announces that it has been able to offset the evolution of its manufacturing costs by appropriate price increases in the first half of its 2021-2022 financial year, following a timetable allowing it to preserve its margins. Consolidated current operating income amounted to €179.3 million and represents 12% of revenue (11.1% in 2020/2021). Taking into account a financial result of 6.8 ME, a corporate tax charge of 46.6 ME and the positive contribution of companies accounted for using the equity method (2.2 ME), the consolidated net profit stands at 141.3 ME (114.4 ME in 2020/2021) and represents 7.34 euros per share.
FALLING VALUES
Exclusive Networks (-0.10% to 19.58 Euros): Gross revenue amounted to 932.4 million euros in the 1st quarter of 2022, an increase of +24.9% year-on-year the other in published data, and +22.9% at constant exchange rates. The activity experienced a historic start of the year due to very high demand. Some orders for the 1st quarter of 2022 could not be delivered due to the shortage of products, as in the 4th quarter of 2021. Finally, the order book maintained its very high level at the end of the quarter, comparable to that of December . The 24.9% growth in gross revenue in the 1st quarter of 2022 was 53% from the growth of existing suppliers, 29% from the geographic expansion of existing suppliers and new suppliers, and 18% from acquisitions from Ignition Technology and Networks Unlimited.
THEY PUBLISHED THEIR TURNOVER/RESULTS…
Aures Technologies, The cross
THE LATEST “RECOS” FROM ANALYSTS…
Deutsche Bank starts trackingEuroapi with a ‘purchase’ advice and 20 euros in the viewfinder.
Berenberg initiates the cover of Stellantis with a ‘buy’ recommendation and a target of 21 euros.
Berenberg initiates monitoring of Renault with a ‘hold’ rating and a target of 27 euros.
MARKET INFORMATION
Figeac Aero : redemption requests for 22.65% of the ORNANEs for 18.6 ME.
Remy Cointreau : the bonds issued by Orpar are exchangeable.
IN SHORT
PAT Group : Clariant launches Rootness Awake.
Theravet : distribution agreement in the United Kingdom.
Maurel&Prom : Gradual restart in Gabon.
Quantum Genomics : end of patient recruitment for the pivotal Fresh study.
Alchemy signs a partnership with LG Channels.
vinci will carry out a highway construction project in Australia.
J.C. Decaux : exclusive contract for street furniture in Dresden for 15 years.