Closing Paris: back in the 4300 point – Boursier.com

(Boursier.com) – TREND

The stock markets continue to evolve without any real trend with a CAC40 which moves away much of 4300 points. On Thursday, the index of the Paris Stock Exchange gave back 0.85% to 4.283 point despite the contribution of Technip that is shown after the announcement of the merger with the American group FMC Technologies next to Wall Street. The oil sector shrank yet today, in the direction of the consolidation of the barrel with a return of $ 47 on WTI (-2%). The US stock market remained elsewhere on the downside on Thursday after the release last night of the Minutes (the report) of the last Fed meeting on 26 and 27 April. Investors were surprised by the tone “hawk” (bull) that “dove” of central bankers, who returns to the agenda a possible rate hike in June or in July.

VALUES RISE

* Technip finally gaining 6.3% to 49.3 euros but took up to 13% this morning. The new group, TechnipFMC, show a combined turnover of 20 billion dollars. The operation will be conducted in titles: Technip shareholders will receive 2 shares of the new group to 1 share exchange Technip and FMC Technologies shareholders will receive 1 share of the new group for each share of FMC Technologies. The entity will be listed in New York and Paris. TechnipFMC will be chaired by the CEO of Technip, Thierry Pilenko. The headquarters will move to London, even if the business will be led from Paris and Houston in particular. The industrial logic for a merger between oil engineering companies and equipment manufacturers is strong , explained this morning the analyst Nicholas J. Green, Bernstein, pointing out that reconciliations are needed in the sector, reduce costs and unlock future markets. Any proposal that can consistently reduce the cost of development of new offshore fields carries a competitive advantage induces, as these are the only projects to be pursued by oil companies , says Green, who TechnipFMC calculated that may be able to reduce by 30% the cost of developing an offshore project in the next three to five years, an analysis already practiced by their joint venture Forsys Subsea.

* BNP Paribas (+ 0.7% to 45.3 euros) will cut about 5% its workforce in London, under the savings plan launched in its financing and investment banking. The French bank should eliminate 233 positions and achieve sixty hires, which would bring the workforce to about 3,105 people in Britain, a source told Reuters. The BFI is also undergoing a course of chokes in other European countries, those where labor costs are highest. Conversely, numbers of reinforcements are provided in the Iberian peninsula and Poland, where wages are lower.

* Societe Generale also rose 1.3% to Euros 34.5. Bank stocks were supported by an analyst note. Bernstein takes the view that it is normal to be “overweight” on the sector at this stage while valuations have reached new lows.

VALUES DROP

* Euler Hermes lost 4.5% to 78.4 euros. Allianz Life has launched the sale of 3,879,818 shares of the credit insurer, representing the entire stake, or 8.56% of the share capital through a private placement. Euler Hermes will buy back a portion (4.9%) and will cancel a total of 6.3% of its own capital.

* Vallourec subsequently falls 5% to 3.18 Euros, CGG 4.5% to Euro 0.64 and Total 2.4% to 42 euros.

* Seb (-1.2% to 96.6 euros) will buy German EMSA, specialist articles and ‘kitchen accessories, including jugs and vacuum bottles and tins. Sales of EMSA totaled 92 ME in 2015.

* Schneider Electric was down 0.7% to 55.5 euros. The US company Massachusetts Financial Services, acting on behalf of clients and funds it manages, told the AMF that down on 16 May 2016, the threshold of 5% of Schneider Electric’s capital. This threshold crossing results from a sale of shares on the market and Massachusetts Financial Services still held on that date 4.99% of capital and 4.66% of Schneider voting rights.

* Eutelsat continues to fall 2.8% in the 18 Euros. The stock has lost almost 35% since its profit warning. British hedge fund Marshall Wace said the AMF hold 0.97% of Eutelsat’s capital short position as of May 18 This short position was reduced slightly over 1% of the capital May 17 and 1.11% May 16 Another significant short position on Eutelsat is listed by the AMF, on the initiative of the Canada Pension Plan Investment Board (1.12% of the capital on February 18).

  Olivier Cheilan – © 2016 Boursier.com