Lagarde shows the teeth, the CAC40 falls

THE TREND

(Boursier.com) – CAC40 lost 1.40% on Thursday, back below 6,400 points to 6,358 points at the close. While waiting for the consumer price index for May in the US tomorrow Friday, attention turned to the European Central Bank, which maintained its deposit rate at -0.5% as expected, but which plans to raise interest rates by 25 basis points in July. meeting … The ECB intends to raise interest rates again in September. According to the bank, “the calibration of the rate hike in September will depend on the medium-term inflation outlook. If the medium-term inflation outlook continues or worsens, a larger hike would be appropriate in September.” Something to calm investors’ zeal …

ECO AND CURRENCY

The ECB confirmed, as expected, the cessation of its bond purchases in the markets on 1 July … The bank therefore announced its intention to launch a series of rate hikes in July in an attempt to curb inflation. The Governing Council plans to raise the ECB’s key interest rate by 25 basis points at its monetary policy meeting in July, the statement said. The ECB’s deposit rate is set at -0.5 per cent. According to comments from the institution’s president, Christine Lagarde, it may have been reduced to zero or slightly over by the end of the third quarter. Bond purchases under the Asset Purchase Program (APP), a credit and financial support tool, expire at the end of the month. Lagarde also assessed that “the risks surrounding the outlook for inflation are on the upside” … “Price increases are spreading to all sectors of activity. The war in Ukraine and the pandemic in China have clearly exacerbated supply difficulties,” Lagarde added. head of the ECB.

On the Fed’s side, the usual participants are this time in a ‘quiet period’ before the monetary meeting (FOMC) on 14 and 15 June, which should be characterized by a new monetary policy tightening of half a point to counter inflation. Faced with the US Federal Reserve’s eagerness to sharpen its tone and this sharp inflation, fears are still focused on the possible scenario of a painful economic landing …
Therefore, tomorrow Friday, the consumer price figures in the USA for the month of May will be published (consensus +8.2% for the unadjusted CPI, year-on-year). In the US, markets expect interest rate hikes of half a point this month and in July and of almost 200 basis points by the end of the year.

Developments in China regarding covid also leave markets confused, with momentum to reopen challenged by the closure of Shanghai’s southwestern district and the reintroduction of restrictions in other parts of the city for mass testing. . Oil returns to $ 123 at Brent tonight. The euro is back below 1.07 to 1.0665 / $.

INCREASING VALUES

DBV Technologies (+ 28%) announced a private placement financing (PIPE) for a total amount of $ 194 million (equivalent to 181 ME) as a result of the sale of 32,855,669 ordinary shares and 28,276,331 pre-financed warrants. The ordinary shares will be subscribed by investors at a price per. ordinary share of 3 euros (equivalent to 3.22 US dollars), and the pre-financed warrants will be subscribed at a pre-financed price of 2.90 euros (equivalent to 3.11 dollars) per share. pre-financed warrant, corresponding to the price per. share on ordinary shares minus the exercise price of 0.10 euros per. pre-financed warrant. The gross proceeds from the PIPE financing amount to approximately $ 194 million before deduction of costs related to the private placement. Settlement-delivery of the PIPE financing is subject to the usual conditions and should take place on 13 June 2022.

EDF returned by 6%, supported by the return of nationalization hopes. According to Les Echos, therefore, the reform of EDF remains a priority for the government and will benefit from a “new breath” thanks to the context of the energy crisis. To avoid the wrath of the unions or the opposition, President Emmanuel Macron would have put forward a unifying nationalization project. Several times postponed during the previous five-year period, the reform of EDF would therefore seem “inevitable” today, and the return of EDF to 100% in the hands of the state would be among the new government’s priority projects expected after elections, legislative measures in parallel with the fight against inflation and pension reform. “We would be better off doing it as soon as possible,” said a source in the public authorities, quoted by Les Échos.

Prodways : + 4% followed by Esi Group (+ 3%) and Voltalia (+ 2.5%) with Guillemot and M&P

Boiron : +2% with Euroapi, Claranova, LFE

HDF : +1.5% with Figeac Aero, Tarkett, Cie des Alpes, Neurones, Nacon, Spie

Savencia : +1% with Vetoquinol, FDJ, Scor

Elior +0.7%, despite HSBC lowering its recommendation to “hold” the file, against a statement to “buy” with a target price drastically cut from 7.5 to 3 euros.

Soitec (+ 0.2%) expects revenue growth of around 20% for the financial year 2022-2023 at constant volume and exchange rates. Growth will continue to be driven by an increase in sales in each of the three end markets addressed by the Group. Soitec expects to continue to benefit from the rollout of 5G, an increase in sales to the automotive industry as well as the continuation of sustained market trends in smart devices. Soitec also expects its EBITDA margin to reach around 36% of revenue in 2022-2023, mainly thanks to the significant operating leverage that the Group should benefit from thanks to the increase in volume. Soitec expects its industrial performance to remain at a high level despite higher raw material prices and rising energy costs. In 2021-2022, the current operating income more than doubled and went from 90 ME in 2020-2021 to 195 ME.

DECREASING VALUES

Atos falls by 7 per cent. The Atos Group and OVHcloud have entered into a quantum computer partnership for the delivery of the Atos quantum emulator in OVHcloud Cloud, ‘as a service’. This European first will make quantum emulation technologies more accessible, thereby expanding the ecosystem of actors involved in the development of quantum technologies, the partners add. Whether it is research laboratories, large schools or universities, start-ups or large companies, “everyone will thus have the opportunity to design quantum software and explore groundbreaking application cases prior to phase”.

Eramet : -7% with Altarea (-6%) with SergeFerrari

CGG : -5% with Nanobiotix, Gensight, Lysogen

believe : -4.5% with Valneva, Casino

Vallourec : -4% with Klepierre, Covivio

Orpea fell further by more than 3% with Innate, Ose

Saffron : -3% with BioMerieux, Technip Energies, STM

Ipsen : -2.5% with Airbus, Korian, Synergie, Quadient, P&V

Liquid air gives 1.6%. Goldman Sachs remains on the buying side, but with a price target lowered from 187 to 170 euros.

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