Paris pre-opening: more positive before the Fed


(Boursier.com) — THE TREND

While waiting for the Fed’s new rate hike on Wednesday, which will perhaps be accompanied by a (slightly) more accommodating speech from American monetary officials, the markets continue to regain ground in Europe, like the CAC40 which has just rebounded by more than 10% in the space of a month… This morning, the pre-session trend is still rather favorable (+0.3%), even if trading should be limited.

WALL STREET

Wall Street for its part erased its initial rise on Tuesday at the close, cautiously returning to the red on the eve of the Fed’s verdict. The S&P 500 dropped 0.41% to 3,856 pts, the Dow Jones -0.24% to 32,653 pts and the Nasdaq -0.89% to 10,890 pts. Operators are therefore playing it safe while awaiting the verdict of the FOMC (this evening at 7:00 p.m.), and after a new series of more or less reassuring quarterly results… The latest rather solid US statistics would tend to confirm the US central bank in its “hard” position. Enough to call into question the most favorable expectations of a change in the Fed’s discourse towards its famous “pivot point”…
Recall that stock markets have been buoyed over the past two weeks by a new narrative around the “pivot” theory of monetary policy that would mark the beginning of a shift in the US central bank’s rhetoric towards a policy less restrictive…

In the shorter term, the CME Group’s FedWatch tool now shows an 88% probability of a 75 basis point rate hike by the Fed at the end of the monetary meeting, which would bring the Fed rate funds between 3.75% and 4%. It would be the Fed’s fourth oversized rate hike, reacting vigorously to record inflation. The same FedWatch tool gives for December 14 (last FOMC meeting of the year) probabilities roughly equivalent to the rate ranges 4.25-4.5% (48% probability) and 4.5-4.75% ( 47% of ‘probability’). In other words, the Fed would increase its rates by another 50 or 75 bp on this occasion. The ceiling could be reached at the February or March 2023 meetings, with maximum rate ranges between 4.75 and 5% or 5 and 5.25%…
The next few months could therefore prove to be calmer on the Fed side, after the December tightening, with the recognition of the lagged effects of policy tightening and the downside risks to growth in the event of an “overreaction monetary”.

A barrel of Brent rebounded this morning to $95.50. The euro is camped below $0.99 between banks. Gold is at $1,647 and Bitcoin at $20,473.

VALUES TO FOLLOW

Sodexo : During its ‘Capital Markets Day’, which is being held today, Sodexo will present its strategic plan for 2025 aimed at generating sustainable and profitable growth and creating value for its shareholders and all its stakeholders .
Sodexo’s strategy of refocusing and accelerating is based on 3 pillars:
-Refocus on catering services and be more selective in Facilities Management services;
– Accelerate the profitable growth of Benefits & Rewards Services;
-Strengthen the impact of the Group’s societal and environmental contribution.
The Board of Directors is convinced that by successfully executing this strategy, Sodexo will achieve:
For the 2023 financial year: +8 to +10% organic revenue growth and an operating margin close to 5.5% at constant exchange rates.
For fiscal years 2024 and 2025: +6 to +8% organic revenue growth and an operating margin above 6% in 2025.
Sodexo’s ambition is to be the world leader in sustainable food and high value-added experiences, at all stages of life: education, work, care and entertainment. Thanks to its strong global positions in the attractive Foodservices and Facilities Management markets, its constant focus on operational execution and a very solid balance sheet, Sodexo is well placed to achieve its ambition.
To implement this strategic plan, a tightly-knit Leadership Team will oversee a leaner and more efficient organization.

M6 has entered into exclusive negotiations with the company Passat SA, with a view to the sale of its subsidiary ‘Best of TV’, which is 51% owned.
Best of TV (importer/wholesaler) offers, in supermarkets, various niche products including those exclusive to teleshopping. These are generally accompanied, in store, by a modern and attractive presentation with a demonstration film.
Passat SA and Best of TV evolve in the same competitive universe and offer different and complementary ranges to their customers. This complementarity of offer, as well as the sharing of common values, will make it possible to accelerate the development of their activity.
This project has the support of the management of ‘Best of TV’.
Completion of the transaction remains subject to finalization of negotiations and consultation of the employee representative bodies concerned.
Through this sale, M6 is continuing to rotate its diversification portfolio, the development of which relies in particular on the power of the Group’s channels.

McPhy Energy announces the final investment decision for its Gigafactory of electrolysers on the Belfort site by its Board of Directors on October 26. This approval was followed by the signature with Bpifrance of a public aid contract by the French State up to 114 ME intended for the Gigafactory within the framework of the PIIEC system. The eligibility of the McPhy project for this scheme was validated by the European Commission last July…

Imerys posts a solid financial performance in the third quarter and confirms its current EBITDA forecast for 2022.
Turnover thus rose by 20.8% to 1,116 million euros in the third quarter (and to 3,258 million euros over the first 9 months of the year, ie +19%).
Organic growth was 13.3% compared to the third quarter of 2021 (+14% over the first 9 months of 2022), the result of the pricing policy in the face of inflationary pressures on costs. Current EBITDA was up 15%, at 193 million euros in the third quarter (+10.2% at 568 million euros over the first 9 months). Net current income from continuing operations was €221 million over the first 9 months (+15.7% compared to 2021).

VeraliaEuropean leader and world’s third largest producer of glass packaging for food and beverages, has signed a firm agreement with a subsidiary of Sun European Partners LLP to acquire Allied Glass, a leader in the segment of premium glass packaging in the UK, specializing in the spirits market.
With over 150 years of expertise in the glass industry, both groups share the same core values ​​– including customer focus and teamwork – that drive and guide their businesses.
With this acquisition, Verallia intends to benefit from Allied Glass’ expertise in the production of premium glass bottles, particularly in the Scotch Whiskey and Gin sectors, and leverage its established position in the UK market.
This transaction will allow Allied Glass to integrate an international group, European leader in glass packaging for the beverage and food sector, and to leverage its expertise and long-term vision.



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