Cac 40 expected stable at opening
Wall Street folds, Europe resists. It must be said that the Euro currency continues its decline that began a month ago, favoring European exporters. A trajectory that should be supported by political developments in Italy. The two anti-system parties agreed yesterday on the main principles of a government agreement, without having so far succeeded in appointing the future President of the Council. A program likely to put pressure on Italian obligations and to displease Brussels, given the budgetary expenditure and tax cuts announced.
100 USD per barrel?
The trend should also be supported by the appreciation of oil prices and the good performance of the oil orientated stocks. The barrel of Brent crossed yesterday the 80 dollars for the first time since 2014, reinforcing inflation expectations and now American bond yields at a seven-year high.
Trump strikes China back
The only shadow in the picture is that the spectrum of trade war has resurfaced with the US President’s new statements that China and the European Union are “too spoiled” in their trade with the United States. Last night, China proposed to Donald Trump a set of measures that would reduce the deficit of the United States with Beijing by 200 billion dollars per year.
Some important publications today
On the securities side, Vivendi will have to be monitored, as it announced that its Board of Directors had approved the launch of a study aiming changes in the capital of its subsidiary Universal Music Group. Bolloré, for its part, reported an increase in its stake in Vivendi to 24%. Finally, Natixis recorded a 15% increase in its net profit in the first quarter, while Vallourec again posted a loss over the same period. We advise to buy Vivendi and Natixis but stay away from Bolloré and Vallourec.
More IPOs in France
In one month, there are already 8 IPOs and more than 20 IPOs are planned before the summer, whereas for the whole year 2017 there were barely more than a dozen. For the time being, more average values are being introduced. In sectors as diverse as healthcare, e-commerce and software publishing. But transactions on larger stocks are in preparation
Telecoms. With very contrasting results for operators. While Free was severely punished for having lost fixed-line subscribers in particular, Altice jumped 12% yesterday after announcing a sharp increase in its number of fixed-line customers after years of decline. Orange remains the big winner in the sector. And Bouygues is taking advantage of its commercial aggressiveness.
No big agenda for today in terms of macro-economic indicator; A man was killed in Florida in the explosion of his electronic cigarette. Smoking still kills; France & Germany has been condemned by the European Court for breaching air quality standards
Trade wisely. And at your own risk.