the CAC 40 resumes its downward path, below 6,000 points

THE TENDENCY

Above 6,000 points at the open, the CAC 40 only lasted about fifteen minutes before dipping and falling below this symbolic level. As 9:30 am approaches, it is down 0.90% at 5,975 points. Investors who yesterday awaited the elements of the emergency meeting of the ECB and then those of the Fed, after the closure of Paris, now have this data, well received by Wall Street and the Nasdaq. So it is not the same in Paris, which, it is true, had made good progress yesterday (+1.35%)…

The US Federal Reserve thus raised its main reference rate on Wednesday by three-quarters of a point (75 basis points) to between 1.50% and 1.75%, the first gesture of such magnitude in 28 years old, in 1994! The US central bank has signaled its intention to continue raising this “federal funds” rate to 3.4% at the end of 2022, then 3.8% at the end of 2023, to curb inflation that has long time has underestimated.

FOMC members significantly raised their median forecast for the fed funds rate to 3.4% by the end of the year, from 1.9% in the latest projections made in March. The FOMC then expects rates to rise further to 3.8% by the end of 2023 (vs. 2.8% forecast in March) before returning to 3.4% in 2024 (2.8% forecast in March). March).

The president of the institution, Jerome Powell, added that “very likely” the monetary policy committee would have to choose between a hike of half a point or three quarters of a point at the July meeting, while stressing that he did not expect hikes of 75 basis points. become “business as usual”.

FINANCIAL WORLD

The New York Stock Exchange rallied late Wednesday after announcements from the US Federal Reserve, which dealt a heavy blow by raising its main key rate by 75 basis points (three-quarters of a point), taking it to 1.50-1.75%, to fight the rise in inflation to 8.6% in May in the United States, the highest in 40 years. Fed Chairman Jerome Powell has not ruled out another 75bp adjustment in July.

At the time, the Dow Jones to reprise 1% to 30,668 points (after -3.2% Monday and Tuesday), while the large S&P 500 index to rebondi from 1.46% to 3,789 pts (after -4.1 % Monday and Tuesday). As for the Nasdaq Composite, rich in technology and biotech stocks, it gained 2.5% to 11,099 pts, after falling 4.68% on Monday and a small rebound of 0.16% on Tuesday.

ECO AND COINS

USA :
– Initiation of housing and building permits. (14:30)
– Weekly unemployment registrations. (14:30)
– Philadelphia Fed Manufacturing Index. (14:30)

Europe:
– Bank of England monetary press release. (13:00.)

The euro/dollar parity reached $1.0430 this morning. A barrel of Brent is trading at $118.94. The ounce of gold is trading at $1,832.

RISING VALUES

Rexel (+2.75% to 18.85 euros) organizes this Thursday, starting at 13:00 CEST, a “Capital Markets Day” from Zürich, headquarters of its activities in Switzerland. During this event, Rexel will present its new mid-term roadmap and reveal its revised financial targets for 2022, as well as its ambitions for the period 2022-2025. Rexel thus raises its targets for the year, after a better-than-expected start to the year in all geographies and higher inflation, in an environment that remains uncertain: comparable sales growth between 7% and 9% (vs. 4% to 6% above); Adjusted EBITA margin of around 6.7%, including 50bps of positive one-off inflation-linked impacts (compared to 6% previously); free cash flow conversion above 60%. By 2022-2025: Like-for-like sales growth between c. 4% and 7% (Compound Annual Growth Rate) -Adjusted EBITA Margin between 6.5% and 7% in 2025. Balanced capital allocation with: an investment/revenue ratio of around 0.9% over the period. An annual distribution to shareholders of at least 40% of the Recurring Net Income. Specific acquisitions that could generate additional revenues of up to €2 billion during the period. A share buyback program of around 400 ME during the period.

FALLING VALUES

Dassault Systèmes (-1.95% to 33.66 euros) today organizes its ‘Capital Markets Day’ at its headquarters. During this day dedicated to financial analysts and shareholders, the general management of Dassault Systèmes will present the Group’s activity, strategy and perspectives. “It is well positioned to achieve its 2024 non-IFRS EPS target and benefits from significant sustainable growth opportunities,” according to management.

Veolia (-1.70% to 23.60 euros): would prepare a public offer for the acquisition of its former waste management activity in the United Kingdom if the British competition regulatory authority blocks the takeover bid for this unit by Veolia, reports the ‘Financial Times’ citing two sources familiar with the matter. Suez has a right of first refusal over the waste management business in the UK if it were to be sold at a price set by Veolia… The company wants to take over this business, as part of a multi-hundred million pound transaction , continues the FT.

Casino (-1.45% to €14.30) plans to simplify and increase the clarity of its legal organization in France by placing all its food distribution subsidiaries, mainly Franprix, Monoprix, Distribution Casino France, Easydis and AMC, under one company. of joint portfolio 100% owned by Casino, Guichard-Perrachon.

Valneva (-0.80% to €7.67) has reached an agreement with the UK government (HMG) on the termination of the supply contract for Valneva’s COVID-19 candidate vaccine, VLA2001. The company had announced, on September 13, 2021, that it had received a notice of termination from the British government. This termination, which Valneva has agreed to on the basis of the UK government exercising its discretionary right to terminate the agreement for convenience, became effective on October 10, 2021. The settlement agreement resolves certain issues relating to Valneva’s obligations. and HMG after the termination of the supply contract and also clarifies others contained in the contract relating to the clinical trials of VLA2001 in the United Kingdom, which is still in force for the same.

THEY PUBLISHED THEIR BILLING/RESULTS…

Esker, Ecomiam

THE LATEST “RECOS” OF THE ANALYSTS…

JP Morgan upgrades its recommendation to “overweight” versus “neutral” on Euronext.

MARKET INFORMATION

Metavisio: fundraising and transfer to Euronext Growth.

Orpea: disposition of 250 ME from its banking partners.

DBT: arrangement of the 6th and 7th bond tranches.

Generix: New Gen Holding launches its offer.

Europcar: minority shareholders can offer their shares until June 29 for the reopening of the offer.

Kaufman & Broad: a “KB Actions 2022” equity offering.

Arcure raised 6 ME.

SOON

OSE Immuno announces a collaboration with Microsoft.

Xilam Animation: contracts with Disney.

Eurazeo will invest more than 70 ME in WiiSmile.

Pherecydes Pharma: 1st patient in PhagoDAIR phase II clinical trial.

Abeo acquires BigAirBag.

Spie: agreement to acquire Stangl Technik in Poland and the Czech Republic.

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