Mid

THE TREND

(Boursier.com) — The CAC40 returns to 6,600 points. The Parisian index, which remains on six consecutive weeks of growth, rose timidly by 0.19% to 6,607 points at midday. Gains are limited as US futures trade in the red after a Fed member’s warning. While several Federal Reserve officials softened their rhetoric after October’s surprise inflation slowdown, Fed Governor Christopher Waller said on Sunday that the Fed may consider slowing the pace of its rate hikes in December. without this reflecting any relaxation in its fight against rising prices. What shower the ambient euphoria and cause a rise in the dollar after the bout of weakness at the end of last week.

On the political front, the Docrates have finally retained control of the Senate while the fate of the House of Representatives remains uncertain even if the Republicans seem to be in a good position. In China, the easing of coronavirus restrictions and reports that authorities have outlined a plan to bolster liquidity in the struggling real estate sector supported the trend and also benefited European indices. US President Joe Biden also met his Chinese counterpart Xi Jinping this morning for the first time since taking office, as relations between the two countries are at their lowest in decades.

On the macro agenda, seasonally adjusted industrial production rose 0.9% in the eurozone in September after rising 2% the previous month. Year on year, industrial production jumped 4.9%, says Eurostat. An evolution superior to the expectations of economists.

The euro/dollar parity reached $1.029 at midday. A barrel of Brent is trading at $95.1. An ounce of gold is traded at $1,755.

Finally, Téléperformance and Orpea continue to make people talk, while Somfy could be delisted. On cryptos, the shock wave linked to the collapse of the FTX platform continues to be felt even if the hour is on the rebound after the boss of Binance announced that his exchange platform is forming “a rescue fund for the industry, to help projects that are solid, but find themselves in a liquidity crisis”.

RISING VALUES

* Innate Pharma soars nearly 20% to 2.5 euros after the presentation of its quarterly results. As of September 30, the Company’s cash, cash equivalents and financial assets amounted to €151.4 million. On the same date, the Company’s total financial liabilities amounted to €43.1 million. Revenue for the first nine months of the year was €44.3m compared to €10.3m for the first nine months of 2021. For the nine-month period ending September 30, 2022, the revenue comes mainly from collaboration and license agreements with AstraZeneca and Sanofi, corresponding to the accounting spread over the period of payments received in this context. On May 3, 2022, Innate announced the start of an At-The-Market (ATM) program. Under this program the Company may issue to eligible investors an aggregate gross amount of up to $75 million of American Depositary Shares, each ADS representing one common share of Innate. As of September 30, 2022, the amount available under the sales contract still stands at $75 million. The estimated cash horizon is during the second half of 2024.

* Orege (+5% to 0.56 euro) announces its first sale of 3 containerized sludge conditioning and thickening solutions to Severn Trent Water for an amount of approximately one million euros. At the end of 8 months of rental on 3 wastewater treatment plants of the Severn Trent Water group, the performance of Orège’s solutions has been “fully validated”. These “significantly improve the thickening performance of sludge and its characteristics, thus allowing a marked increase in the treatment capacity of anaerobic digesters and biogas production”.

* Teleperformance (+3.7% to 197.1 euros), whose stock price had been particularly hectic last week after the announcement by the Colombian Deputy Minister of Labor of his decision to open an investigation into the environment of the work in its Colombian subsidiary, indicated that a meeting between Teleperformance Colombia and the Colombian Ministry of Labor would be held this Wednesday, November 16. This meeting, set up at the initiative of Teleperformance, aims “to initiate dialogue with the recently elected government in Colombia, about its operations in Colombia”. The group is a major employer there with more than 41,000 employees. “While no official notification has been received, Teleperformance Colombia has reached out to the government and trade unions to establish a fair and open dialogue. As a responsible and law-abiding company, Teleperformance Colombia will bring also its full support for the authorities in the context of any control they would like to carry out”, adds the group.

* Sanofi climbed 2.6% to 84.5 euros. The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency has issued a favorable opinion and recommended the approval of Dupixent (dupilumab) Sanofi in the European Union (EU) for the treatment of moderate to severe nodular prurigo in adults who are candidates for systemic treatment. The European Commission is expected to make its final decision in the coming months. In September 2022, Dupixent was approved by the United States Food and Drug Administration for the treatment of nodular prurigo in adults.

* Orange (+1.5% to 9.8 euros), via its cybersecurity subsidiary Orange Cyberdefense, acquired 100% of the Swiss companies SCRT and Telsys. These two sister companies have their common headquarters in Morges near Lausanne, and employ around 100 employees, experts in cybersecurity and associated services, equally spread over the offices in Geneva and Bern. Leader in the French-speaking Swiss cybersecurity market, SCRT has been supporting its clients for 20 years by offering them a complete set of cybersecurity services such as managed service solutions, consulting, ethical hacking or remediation in the event of an attack. . Telsys is more specialized in the management of IT solutions. The development of its cybersecurity subsidiary is a priority for Orange. In a market growing by more than 10% per year, the subsidiary achieved a 14% increase in turnover in 2021 with the objective of reaching one billion euros in 2023. This acquisition increases the expertise of ‘Orange Cyberdefense in terms of knowledge of the cyber threat as well as the uniqueness of its strike force in terms of ethical hacking, with more than 200 professionals dedicated to this activity.

* Somfy, which remains on six consecutive sessions of increase, has been suspended since this morning. A suspension “at the request of the company, pending the publication of a press release and until further notice”, specifies Euronext. According to ‘Bloomberg’ sources, the Despature family, which holds a majority stake in Somfy, is considering delisting the stock. The family has been working with advisers to explore a potential minority buyout offer, the agency’s sources said. An operation which would take place when the title has melted by 33% this year and the Savoyard industrial group weighs only 4.4 billion euros on the Parisian market. Deliberations are ongoing and there is no certainty that they will result in an agreement.

FALLING VALUES

* Elior fell 9.5% to 2.61 euros after Barclays lowered its recommendation on the value to ‘underweight’ while cutting its target from 6 to 2 euros. The bank discusses the risks weighing on the company’s balance sheet and the potential non-compliance with covenants. She also cites “zero visibility” on the company’s ongoing strategic review… UBS, for its part, reduced its target from 3.3 to 3 euros with a ‘neutral’ opinion maintained.

* Orpea now drops 5.6% to 8.1 euros. The CDC has been studying the possibility of taking a stake in the operator of retirement homes since May and is ready to acquire 20% to 29.9% of the capital in partnership with a mutual insurance group. According to information from the ‘JDD’, the potential investment would depend on compliance with certain conditions relating to operational practices and the balance sheet. A CDC spokesman contacted by ‘Bloomberg’ said that before the institution could consider any financial involvement, Orpea had to demonstrate a complete change in its practices and strengthen its balance sheet to allow the company to recover. without the need for excessive margins. He declined to comment on the figures cited by the JDD.

* Kering returns 1.5% to 535.4 euros. The race to take over Tom Ford is still undecided. As the ‘Wall Street Journal’ wrote a week ago that Kering was in advanced talks to buy the luxury brand, the ‘Financial Times’ says Estée Lauder is close to a deal to buy the luxury brand for about $2.8 billion, including debt. The WSJ previously reported in early August that the US cosmetics maker was in talks to buy Tom Ford in what could be the company’s biggest ever acquisition. Estée Lauder is said to be particularly interested in the beauty business of Tom Ford, with whom she has a long-standing licensing agreement. But a deal with Kering might make more strategic sense given its expertise in high-end fashion and accessories, the WSJ pointed out.

* Technip Energies now yields 0.6% to 14.6 euros, despite a note from Exane BNP Paribas which raised to ‘outperform’ its recommendation on the file while raising its target from 13 to 19 euros. The broker says the energy services company’s underperformance is “simply unwarranted.” “Lots of excuses” for ignoring the investment case this year, but many of those issues are now resolved. A series of structural tailwinds underpin a stronger outlook for 2023, the broker adds.

Mid-session Paris: the CAC40 starts the week up slightly, Téléperformance goes up a little