(Boursier.com) – The Parisian market ends this first week of the year with a weekly gain of 0.93%, at 7,220 points this Friday evening. The CAC40 set records before faltering Thursday in the wake of Wall Street after the Fed’s more hawkish tone than expected on Wednesday night. According to the “minutes” of the last FOMC meeting in December, the institution could be led to raise its rates earlier than previously envisaged and to start reducing its balance sheet given a “very tight” job market and the high level of inflation. Statements that caused a sharp rise in risk aversion and a sharp rise in bond rates.
Regarding the job market precisely, job creations in December were disappointing but the unemployment rate, at 3.9%, fell to a low of nearly two years across the Atlantic. In addition, the average hourly wage rose 0.6% compared to the previous month and is up 4.7% over one year, much stronger increases than expected, which should only encourage the Fed in its fight against inflation that has become too vigorous.
Even before these figures were released, James Bullard, chairman of the St-Louis Fed, confirmed on Thursday that the Federal Reserve planned to conduct much less accommodative monetary policy in 2022. He said he was in favor of 3 hikes in rate of a quarter of a point this year, with a first turn of the screw from the March meeting, and a reduction in the balance sheet starting “shortly after” the first turn of the screw.
The WTI gained about 5% over the week, around 78.9 dollars, supported in particular by social unrest in Kazakhstan, which could disrupt oil production in this country. Tuesday, OPEC +, which includes Russia and Kazakhstan, announced as expected, an increase in their production target of 400,000 barrels per day in February, for the seventh consecutive month.
The euro / dollar parity is $ 1.35, while bitcoin is trading below $ 42,000 on Coindesk.
On the value front, crossroads has been talked about again while Auchan intends to buy the group led by Alexandre Bompard, STMicro pleasantly surprised by revealing better than expected quarterly income, whileALD completed the acquisition of the week with the takeover of Leaseplan for 4.9 billion euros. The last few sessions were more complicated for luxury and tech players against the backdrop of rising bond yields after the Fed’s ‘hawkish’ tone.
VALUES
* CGG soared 16.6%, driven by a sale of assets and the strength of black gold prices.
* crossroads climbs 14%, again supported by rumors of a takeover by Auchan. Bloomberg said Wednesday that the northern group had restarted work on a potential agreement with the king of hypermarkets, after the failure of previous negotiations in the fall. The next day, the newspaper ‘Les Echos’ confirmed this information, even adding that an agreement between the two parties could be reached with a “100% cash offer and, while doing so, with a premium on the previous offer, namely a proposed price of 23.50 euros “.
* Balyo (+ 14%). The title of specialist in innovative robotic solutions for industrial trucks was sought after the announcement of a strategic and commercial partnership with Bolloré Logistics in the Asia-Pacific region. After testing, Bolloré Logistics could extend Balyo’s solutions to other warehouses in the area. “The success of the tests and the penetration of a group like Bollore would accelerate the commercial dynamic (orders, commercial showcase) “, noted Portzamparc, to ‘keep’ on the title.
* Renault is 12.1%. Qualcomm on Tuesday announced that it has reached agreements with manufacturers Volvo Group, Honda Motor and Renault to supply them with chips, accelerating its willingness to partner with companies in the automotive sector that are digitizing their product lines. No details on the agreement with the diamond manufacturer have filtered out. In addition, JP Morgan reiterated its opinion of ‘overweighting’ on Renault as well as its target of 62 euros.
* ALD (+ 10.7%) after the announcement of the takeover of Leaseplan for an amount of 4.9 billion euros. The Société Générale subsidiary, specializing in long-term car rental, will change its caliber with this acquisition, financed in cash and in shares, to the extent that it will lead to the creation of a global player in mobility, with a fleet combined total of approximately 3.5 million vehicles. Societe Generale will remain the majority shareholder of the new group with 53% of the capital, while the shareholders of LeasePlan will receive a participation of 30.75% as part of the payment in securities.
* Societe Generale takes 9.9%. In addition to the rise in bond yields which is benefiting the entire financial sector, the Banque de la Défense would be well placed to take over ING France’s retail client portfolio. According to information from ‘La Tribune’, “only two candidates have submitted a takeover offer, namely Societe Generale on behalf of its subsidiary Boursorama, and Crédit Mutuel Arkéa for its subsidiary Fortuneo”. Crédit Mutuel Alliance Fédérale and Crédit Agricole have reportedly abandoned the case.
* Air France KLM climbs 9.8%. The airline’s title was backed by a rating from Citi that went from ‘sell’ to ‘neutral’ on the record. Globally, the US bank sees “multiple catalysts” for ‘traditional’ long-haul airlines such as freight dynamics, the resumption of business and transatlantic travel, and the reopening of Asia-Pacific travel. Citi has also stepped up to ‘buy’ its opinion on Lufthansa. In addition, according to ‘Les Echos’, Air France-KLM will have to carry out a new capital increase of 1 to 2 billion euros in 2022 to reconstitute its own funds and meet its commitments. According to the economic daily, this fundraising will not be the last for Air France-KLM which according to estimates, would need 4 to 6 billion euros to “stay in the front line of air transport”. “It will not only be a question of convincing the State as a shareholder, but also private investors: without them, Air France will not be able to finance its future”, underlines the daily.
* Dassault Aviation (+ 8.7%). The aircraft manufacturer delivered 30 Falcons last year for a forecast of 25 deliveries (34 in 2020). 25 Rafale Export were also shipped, in line with the group’s forecast (13 in 2020). In 2021, 51 Falcon were ordered, (15 in 2020) as well as 49 Rafale (37 Export and 12 France). As of December 31, 2021, Dassault Aviation’s backlog included 55 Falcon (34 Falcon as of December 31, 2020) and 86 Rafale (62 Rafale as of December 31, 2020).
* Trigano advance of 7.3% after the publication of revenues significantly higher than analysts’ expectations for its first quarter 2021-2022. The specialist in tourist vehicles generated sales of 786.8 ME over the period, up 9.2% (+ 8.5% at constant scope and exchange rates) in a context marked by strong demand for leisure vehicles and despite activity largely disrupted by difficulties in supplying rolling bases for motor homes. Despite the lengthening of delivery times, the interest of European consumers in the acquisition of motorhomes is not waning and “Trigano’s order books saturate its production capacities well beyond the 2022 season”. The medium-term demand outlook remains very positive, also supported by the historically low level of stocks in the distribution networks.
* STMicro offers a gain of 2.3%. The semiconductor specialist posted sales of $ 3.56 billion in the fourth quarter of 2021, higher than expected thanks to the still very dynamic market trends. Persistent chip shortages plaguing business in industries such as automotive manufacturing and consumer electronics still appear to be relevant despite slight signs of improvement. STMicroelectronics has specified that its 2021 turnover will suddenly rise to $ 12.76 billion against $ 12.6 billion previously expected. “We closed the fourth quarter of 2021 with net sales above our forecast range and gross margin at or slightly above our forecast range, mainly related to better than expected operating activities. in a market that is still dynamic “, indicates Jean-Marc Chéry, chairman of the group’s executive board.
Conversely, * Valneva plunges 28.3%. The Nantes-based company has confirmed its schedule for clinical trials and marketing authorization applications for its inactivated and adjuvanted vaccine candidate against covid, VLA2001. And this as the idea that Omicron could play the role of ‘natural vaccine’ by stimulating the immunity of infected people without endangering them begins to spread. “This is exactly the principle of vaccination, with the difference that Omicron does not require any particular logistics, or contracts to ensure the coverage of a population, or deadlines for the manufacture and supply of the batches. This strategy presents therefore several pecuniary, temporal and logistical advantages in addition to the reestablishment of a certain equity between the countries “, affirms for example Invest Securities.
* Eurofins Scientific (-9.2%) with Sartorius Stedim (-12.5%) and bioMérieux (-9.5%). The ‘Covid values’ were abandoned this week.
* Capgemini yields 7.1% and Dassault Systèmes fell 8.6%, weighed down, like the entire sector, by the rise in bond yields after the Fed’s more hawkish tone than expected. Highly valued technology stocks are the most vulnerable to a rate hike, which has a direct effect on the discounting of future cash flows in high-growth companies.
* Coface stumbled by 6.5% after the exit of the capital of Natixis. The BPCE group bank sold 15,078,095 shares of the credit insurer at a unit price of 11.55 euros. The operation, for an amount of approximately 174.2 ME, is carried out within the framework of an accelerated placement with institutional investors. It represents 10.04% of Coface’s share capital.
* OVH gives back 5.7%. A collective action is being prepared against the group … Ten months after the fire which destroyed a significant part of the data center of the company specializing in cloud computing, some 56 victim customers have come together to prepare a group action in view to obtain redress, as reported by ‘BFMTV’ on Friday. “In these 56 companies, we have a majority of SMEs and VSEs, we also have a few large industrial groups based internationally,” explains Maître Dakos, lawyer at Ziegler & Associés, who is working on the case. “We also have a CAC 40 group and an administration. We will demonstrate in our appeal that OVH could have taken measures, devices: automatic fire extinguisher, preventive devices,” he continues. The objective of this action is to receive compensation ranging from 10,000 euros to 1.9 million euros, according to the cabinet.