New record in sight for CAC 40 thanks to Jerome Powell

(AOF) – European markets are expected to surge in the wake of Wall Street. Yesterday, the Fed did not dampen market expectations of a rate cut as economists had expected. On the contrary, its members plan 3 reductions of 25 basis points in 2024. The ECB and the Bank of England will announce their decisions in the early afternoon. Long-term rates are falling sharply, with the US below 4% for the first time in 10 years since August. In Paris, investors will react to Atos’ Onepoint capital increase and Vivendi’s proposed spin-off.

Values ​​to live by today

Vivendi

Vivendi is studying a proposed split into several entities, each of which would be listed on the stock exchange. The media and communications group justifies its decision with a “very high conglomerate discount” that “significantly reduces its valuation” and “thus limits its ability to carry out external growth operations for its subsidiaries”.

Vivendi emphasizes that Canal+, like Havas and Lagardère in particular, is experiencing strong momentum today in an international context marked by a number of investment opportunities.

Atos

Digital transformation specialist for companies and organisations, Onepoint, has crossed the threshold of 10% of the capital and voting rights of Atos, according to a statement by the Financial Markets Authority.

He owns 11.14% of the capital and voting rights of Atos, of which he recently became a “new benchmark investor”.

This threshold crossing follows the acquisition of shares in the market, with Onepoint specifying that it “intends to continue to make purchases of Atos shares subject to market conditions”.

Vallourec

Vallourec, specialist in premium tubular steel solutions, announces the successful completion of the Vallourec Invest 2023 employee share offering.

5,115 group employees in France, Brazil and the United States have decided to participate and subscribe. Vallourec promotions with a 20% discount and a corresponding allowance.

This represents almost one in two eligible employees. This offer reflects Vallourec’s desire to engage the Group’s employees in value creation in recognition of the progress made so far in implementing the new Vallourec Plan.

Fnac Darts

Fnac Darty announced that it has renegotiated its €500 million RCF credit facility (revolving credit facility) maturing in March 2028, with the addition of 2 new extension options, until March 2029 and March 2030, exercisable at Fnac Darty’s request and subject to approval . creditors.

The financial conditions remain unchanged. At the same time, Fnac Darty exercised the first 12-month option to extend its undrawn deferred drawdown line of credit (DDTL).

Macroeconomic figures

The decision of the Bank of England on monetary policy will be known at 13:00 and the decision of the ECB at 14:15 CET.

In the United States, weekly jobless claims, October import prices and November retail sales will be released at 2:30 p.m.

October trade inventories are expected at 16:00 and the weekly change in gas inventories at 16:30.

This morning, the euro gained 0.22% to $1.0902.

Yesterday in Paris

European stock markets closed in the red, with the exception of the British kicker. Investors are eyeing the Fed, which will deliver its monetary policy announcements later in the evening.

Tomorrow, central banks will again be at the center of the news, with the ECB and BoE in particular on offer. On the value side, Engie shone after the deal with Belgium, unlike Carrefour, which finished at the bottom of the Paris market’s flagship index. The CAC 40 lost 0.16% to 7,531 points. The EuroStoxx 50 lost 0.15% to 4,529 points.

Yesterday on Wall Street

US markets ended sharply higher after the Fed signaled it would cut its key rates by 75 basis points next year. Unsurprisingly, they held steady at 5.25%-5.50% on Wednesday.

“The question is starting to arise as to when it will be appropriate to cut rates,” Fed President Jerome Powell said.

The accommodative nature of its intervention saw the 10-year yield fall 18 basis points to 4.024%. The Dow Jones index rose by 1.40% to 37,090.24 points and the Nasdaq Composite rose by 1.38% to 14,733.96 points.

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