The Parisian market remains well oriented on Tuesday with a CAC40 which even surpassed 6,100 points in the morning on the back of last night’s strong Wall Street rally. Around midday the rise was significantly reduced to + 0.5% around 6,070 points. The CAC40 has already lined up 3 previous sessions in the green.
While the global environment has hardly changed (high inflation, tight monetary policies by central banks, energy crisis in Europe, war in Ukraine, etc.), the marked easing of the bond market after the British government’s 180-degree turn on its program fiscal and early releases from generally reassuring companies, particularly on the side of major US banking stocks, provide some support to the markets after the recent crash.
Across the Channel, the Bank of England may also delay the planned sale of government bonds (the famous QE) after the government’s failed budget plan disrupted the financial markets, the “Financial Times” reported. without saying where he got the information from. While the BoE has planned to begin QE at the end of the month (the time has already been moved), colleagues of Governor Andrew Bailey have always said they would be ready to change course in times of market stress.
The first test of banking results on Wall Street proved conclusive Friday and yesterday Monday, with notably “good accounts” from JP Morgan Chase and Bank of America. The American rating also took off on Monday and is expected to rise again today.
* Publicis (+ 1.4% to € 56.2) once again raises its annual forecasts after posting double-digit organic growth for the third consecutive quarter. The company now expects organic growth of 8.5%, up from 6% to 7% previously, an operating margin rate of close to 18%, up from 17.5% to 18% previously, and a free cash flow close to € 1.6 billion, up from at least € 1.5 billion previously. In the three months to the end of September, the company posted published growth of 23.5% to € 3.24 billion and 10.3% organically, more than double analysts’ expectations.
* Renault earns 2% at 32.6 euros. Talks between Renault and Nissan Motor on the renewal of their two-year partnership have reportedly progressed so well that a deal between the two sides could be unveiled as early as this week. According to a “Bloomberg” source familiar with the negotiations, the two producers are close to signing a non-binding deal after the details were largely finalized late last week. Although an event is scheduled in Tokyo on November 15 to unveil the new compromise, discussions would still be ongoing and a final deal could still be delayed.
* AXA (+ 0.5% to 24 euros) has entered into exclusive negotiations with Groupe des Assurances du Crédit Mutuel (GACM SA) for the potential acquisition of its subsidiary Groupe Assurance du Crédit Mutuel Espana, a mainly non-life and health insurer in Spain. Under the terms of the transaction, AXA would acquire GACM Espana for a cash consideration of € 310 million, representing a multiple of 1x Solvency II eligible capital. The multiple of the profit price is estimated at around 9x, taking into account the expected realization of capital and structural synergies. The transaction is subject to customary closing conditions.
* Stellantis (+ 2.2% to 13.1 euros) confirmed the fundamental objectives of its global strategic plan Dare Forward 2030. It aims in particular at a neutral carbon footprint by 2038, with a reduction in carbon emissions by 50% by 2030 compared to 2021 measurements; to ensure that 100% of passenger car sales in Europe and 50% of passenger car and light commercial vehicle sales in the US are electrified vehicles by the end of the decade; wants to offer more than 75 electric models and sell 5 million electric vehicles annually worldwide by 2030.
* Airbus rises by 0.7% close to 100 euros. Jet2.com will purchase 35 A320neo, bringing its total commitment to the A320 Family to 98. The order for the narrow-body aircraft is worth $ 3.9 billion before “significant discounts”, with deliveries lasting three years to 2031, the British carrier said. It also took options for 36 additional aircraft. Jet2.com had already ordered 36 A321neo in August 2021.
* The Catana Group lost 6% to € 5.91. With a total turnover of 148 ME for the financial year 2021-2022, the company recorded the strongest growth in its history (+ 46%) despite the shortage of parts and labor generated delays in deliveries, representing 18 ME of billing transferred to N +1. The group is pleased to have risen in a few years to third place in the world among catamaran manufacturers. The group does not detect the slightest slowdown in sales at this stage. Despite the increase in sales prices, he was able to observe in the first fairs of the new season (Cannes, Genoa, La Rochelle, Southampton) that the purchase intentions on the part of individuals and professionals were still strong. The evolution of the Group’s order book also reflects this trend, being now equal to 450 ME distributed in the financial years 2023 and 2024.
* The largest decline in the CAC40, Eurofins Scientific fell by 5.7% to 60.5 euros. The group specialized in bioanalytical services recorded a slight decline in revenues in the third quarter (-0.6% to 1.62 billion euros) but confirmed the objectives for 2022. In the organic data, excluding revenues linked to Covid- 19, the growth reached 6.7%. In the first nine months of the year, turnover reached a record level of 5.03 billion euros, up 2.7% in one year. Eurofins plans to update its guidelines for 2023 and 2024 when it publishes the results for the full year 2022 on February 22, 2023. “Until then, potential impacts of the war in Ukraine, supply chain disruptions, COVID testing – 19 ongoing / permanent, inflation and hopefully exchange rates will be clearer, “management said.
* Virbac lost 4% to 272.5 euros. Jefferies downgraded Virbac to “keep” and cut his target from € 368 to € 296.
* Rexel sells 1.3% for € 16.45. Morgan Stanley downgraded Rexel to “line weighting” and reduced its target from € 24 to € 19.