(Boursier.com) — THE TREND
The CAC 40 continued its correction by sinking 2.66% to 7,503 points at the close after having lost up to 3% in the afternoon… The Parisian index thus shows a fall of more than 6 % since Monday following the announcement of the surprise dissolution of the National Assembly which caused the appearance of a significant political risk in France which greatly worries investors. The rate spread with Germany has continued to widen, keeping the financial sector under high pressure…
The French Minister of Economy and Finance, Bruno Le Maire, for his part warned against the risk of a “financial crisis” in France “if the union of the left or the extreme right came to ‘win in the early legislative elections’. Asked to say on franceinfo if the political unknown born from Emmanuel Macron’s decision to dissolve the National Assembly on the evening of the European elections carried financial risks, Bruno Le Maire responded in the affirmative: The required risk premium by investors to hold French government bonds reached its highest level in more than four years on Friday. The ten-year OAT yield is on track to experience its largest weekly increase – of more than 25 basis points – since the euro zone debt crisis in 2011. The OAT yield is thus evolving at almost of 3.20% and the “spread”, i.e. the difference between French and German 10-year borrowing costs, reached 80 bp.
The yield on the ten-year German Bund, the benchmark for the euro zone, is down more than 8 basis points to 2.40%…
“We now borrow more expensively than the Portuguese,” underlined the Minister of the Economy. “It is not the question of the balance of public finances, it is the question of the projects which are on the table to know whether we can, yes or not, finance this debt”. Marine Le Pen’s National Rally (RN), which is leading opinion polls ahead of the legislative elections, is calling for a reduction in VAT, particularly to 5.5% on energy, food and ‘essence. Ratings agency S&P Global, which recently downgraded France’s credit rating, warned this week that policies advocated by the far-right party could have consequences for the rating…
The left-wing parties, who announced Thursday an agreement on a common program with a view to the legislative elections, for their part wish to lower the retirement age and introduce a new wealth tax. “With the projects of the far left and the far right, the debt cannot be financed,” added Bruno Le Maire.
On the macroeconomic side, the latest reassuring statistics on inflation in the United States validate a scenario of a soft landing for the American economy and therefore that of a rate cut by the Fed… Not enough however helping the trend in Europe and particularly in Paris. The euro returns to 1.07/$. Bitcoin is at $66,840.
RISING VALUES
Atos (+14.5%) announced the receipt of a non-binding confirmatory offer letter from the French State concerning the potential acquisition of 100% of the activities of Advanced Computing, Mission-Critical Systems and Cybersecurity Products of the company’s BDS (Big Data & Cybersecurity) division. This non-binding confirmatory offer concerns a global enterprise value of 700 million euros. The Board of Directors of Atos, under the aegis of the Conciliator Maître Hélène Bourbouloux, and the management of the company will discuss this proposal with the State, it being specified that no certainty can be provided as to the resulting from the negotiations and the conclusion of a final agreement between the parties. Furthermore, the company confirms its objective of reaching a definitive financial restructuring agreement with the Onepoint consortium and its financial creditors.
Clariane : +10.6% followed by Abionyx (+9%)
Ramsay : +5%. Ramsay Santé, European leader in private hospitalization and primary care, announces the takeover of 11 Cosem medical and dental centers. Ramsay Santé’s takeover offer concerns the existing Cosem centers in Paris, Evry, Caen, Orléans and Marseille, which care for more than 1 million patients per year, in general and specialized medicine, dentistry, imaging and laboratory ‘analysis. The redeployment project for these centers should make it possible to ensure the sustainability of these structures in all the specialties present and to maintain employment for all the healthcare personnel who work there, i.e. nearly 1,000 professionals including 660 doctors…
JC Decaux : +1.5%, Eagle Foot (+1%)
Aramis : +0.5% followed by Ekinops
FALLING VALUES
SMCP : -14% followed by S30 and Phaxiam (-13%) with Nanobiotix
Nexity : -12% followed by Coty (-10%) with Eramet, Memscap
Genfit : -9% with Spie, Dried
Sopra Steria : -8.5% with Guerbet, Abivax
Nacon : -7% followed by MdM, Exail, Esso, BigBen, Assystem, Forvia
Inventive : -6.5% followed by Derichebourg, Thales, Imerys, Lhyfe, Ose, Manitou, Elis, Quadient
HIS : -5.5% with Rexel, Valneva
SocGen : -3.5% followed by Crédit Agricole (-3%) and BNP Paribas (-2.5%)
TotalEnergies (-1.5%) has reached an agreement to sell its wholly-owned subsidiary TotalEnergies EP (Brunei) BV to Hibiscus Petroleum Berhad, an independent Malaysian oil and gas exploration and production company. The transaction, worth $259 million, is expected to be completed in the fourth quarter of 2024. TotalEnergies EP (Brunei) BV holds a 37.5% operated interest in Block B, alongside Shell Deepwater Borneo (35% ) and Brunei Energy Exploration (27.5%).