Nvid-IA Day – Zonebourse

On Wall Street, investors had circled two dates in red in November 2024: November 5 for the American presidential election and November 20 for Joseph Robinette Biden’s birthday. Just kidding, the 82^e The birthday of the President of the United States no longer interests anyone since the Americans decided that he was an old man. But I never resist the temptation to write “Robinette”, for a reason that escapes me and which you probably have nothing to do with.

The event of November 20 that interests the financial world is the publication of Nvidia’s results this evening. Based on the turmoil in the options market, Barclays is even able to say that this is the most important moment of the end of the year, ahead of the Fed meeting scheduled for mid-December and the arrival of Santa Claus in all the good chimneys of the world. Unless of course hordes of North Korean soldiers invade Western Europe. That said, we will probably have other fish to fry than portfolio management if this were to happen.

More seriously, it is always a little discouraging to note that part of the mechanics of the stock market is based on the quarterly results of a single company. However, this is not that far from the truth. Nvidia can’t do everything, despite its current capitalization of $3.6 trillion (roughly the nominal GDP of the United Kingdom), but it can do a lot. For example, it can push investors to press the “risk-taking” button again to get out of the rut of recent sessions. American financiers love good stories of ever-soaring profits, eternal optimism and promises of future technological revolutions. They have so much confidence in the AI ​​chip manufacturer that they caused the stock to jump 5% yesterday on the eve of the results. Technically, this means people have been buying the stock heavily in anticipation of good news tonight. Because we will have to wait until after the American close to validate the scenario. All the usual dramaturgy elements are in place, up to the publication date. I have already talked about it in recent months, the fact that Nvidia closes its accounts on January 31 and not December 31 like most companies means that it announces its figures outside of busy periods, which gives it exposure. maximum. Analysts have high expectations, but they secretly hope that the group will astound them by keeping alive the flame of a limitless AI market, a source of daunting growth and prodigious profits.

In the meantime, Tuesday’s stock market session greatly resembled that of Monday on Wall Street. The Dow Jones fell slightly, while the S&P500 and the Nasdaq 100 continued their rebound, relying on technology stocks. The gains were obtained despite the big slack that occurred after the confirmation of Ukraine’s first strikes inside Russian territory with American-made ballistic missiles. The strong symbolism of this attack, combined with a hardening of Russian doctrine in terms of nuclear weapons, sent European indices to the ground. The French CAC40 lost up to 2% around 3:00 p.m. But the recovery of the American indices at the opening allowed the old continent to limit its losses. The Parisian market ultimately only lost 0.7% at the close. However, it was better to be positioned on defense (Thales, +1.6%) than on luxury (LVMH, -2%) to limit the damage. Recently, Europe’s stock market has suffered from comparison with the United States because of the directions of the future Trump presidency. Yesterday, the performance differential can be explained in a more trivial way by the fact that the United States is further away from the scene of tensions.

In the rest of the news, the G20 in Brazil seems to be a shambles. However, it emerges that Westerners have significantly less say in the matter than before and that the major economies of Asia, South America and Africa have points of convergence which give this bloc increasing weight on the scene. international. Even if it is a little battered economically, China continues to pull the strings of global geopolitical reorganization.

In Asia Pacific, the main places are bearish, with the exception of South Korea which gained 0.4%. Hong Kong, Shanghai and Tokyo fell by less than 0.3%. The decline is a little more pronounced in Australia (-0.7%) and Taiwan (-0.8%). India is closed for a public holiday. European and American leading indicators are slightly bullish.

Today’s economic highlights

German producer prices and UK inflation for October will be announced at 8am. In the United States, make way for DOE crude stocks. The whole agenda here.

The main changes in recommendations

• AMS-Osram: Deutsche Bank maintains its buy recommendation with a price target reduced from 15 to 10 CHF.
• Avolta: JP Morgan maintains its recommendation to overweight with a price target reduced from 60 to 50 CHF.
• Buzzi: JP Morgan goes from underweight to neutral with a price target raised from 33 to 46 EUR.
• DNB Bank: Autonomous Research moves from neutral to outperform with a price target raised from NOK 252 to NOK 263.
• EasyJet: HSBC downgrades its buy to hold recommendation with a price target of 5.30 GBP.
• Edenred Se: Jefferies goes from underperformance to hold with a price target reduced from 31.80 to 25.60 EUR.
• EDP ​​- Energias De Portugal: Bernstein moves from market performance to outperformance with a price target reduced from 4.50 to 4.15 EUR.
• EDP ​​Renováveis: Bernstein moves from market performance to outperformance with a price target reduced from 16 EUR to 14.30 EUR.
• Galderma: Citigroup maintains its purchase recommendation with a price target raised from 80 to 100 CHF.
• Holcim: JP Morgan goes from neutral to overweight with a price target raised from 81 CHF to 108 CHF.
• Innate Pharma: Goldman Sachs maintains its neutral recommendation with a price target raised from 2.25 to 2.41 EUR.
• Interparfums: Stifel maintains its purchase recommendation with a price target reduced from 53 to 50 EUR.
• Nestlé: Bernstein maintains its market performance recommendation and reduces the price target from 100 to 80 CHF.
• Nexans: Stifel starts monitoring to hold with a price target of 123.10 EUR.
• Remedy Entertainment: Inderes goes from accumulating to buying with a price target of 19 EUR.
• SES SA: AlphaValue/Baader Europe maintains its buy recommendation and reduces the price target from 6.53 to 6.47 EUR.
• Sonova Holding: Barclays maintains its market weighting recommendation with a reduced price target from 310 to 307 CHF. JP Morgan maintains its neutral recommendation with a price target reduced from 227 to 224 CHF.
• SSP Group Plc: JP Morgan moves from overweight to neutral with a price target reduced from GBP2.80 to GBP2.
• Technip Energies: Bernstein maintains its outperformance recommendation and raises the price target from 28.30 to 32 EUR.
• Valneva: Goldman Sachs maintains its neutral recommendation with a price target reduced from 3.70 to 2.85 EUR.

In France

Important announcements (and less important… I should point out that the information is given immediately before the opening and does not prejudge the color of the shares during the session)

• STMicroelectronics pushes back its 2027 financial targets to 2030.
• ArcelorMittal intends to close two sites in France, which will affect 130 employees.
• The Airbus CEO believes that CFM International (Safran, GE Aerospace) should be able to supply enough engines to support the planemaker’s end-of-year plans, but that it would be “very tight.”
• Stellantis unveils technology enabling flexible production of electric and hybrid vehicles.
• Crédit Agricole Assurances will sell 2.2% of the capital of La Française des Jeux.
• At Vinci, motorway traffic increased by 0.8% and airport traffic by 6.2% in October year-on-year.
• Teleperformance will cut 600 jobs in France, a third of its workforce in the country.
• Edenred is strengthening its share buyback program by €39 million.
• Elior exceeds expectations in 2023-2024 and aims to improve its results.
• Solutions 30 extends the maturity of its debt thanks to a syndicated loan of €120 million.
• Obiz muscle sa direction.
• Exail wins an order for a navigation system for a navy in the Asia-Pacific.
• Synergie buys the stake of the minority shareholder of Synergie Italia.
• Vogo deploys its Vokkero Elite solution in 18 stadiums in the United States.
• Charwood Energy signs a partnership with Schmid Energy Solutions for the distribution of eco-responsible heating systems in France.
• Mauna Kea has launched a strategic review of its activities, while its cash flow is reduced.
• Theranexus presented positive results from the phase I/II trial of Batten-1 at a conference in the United States.
• The main publications of the day : Soitec, Elior, Actia, Figeac Aero… Stay here.

In the big world

Important (and not so important) announcements

D’Europe

• Grifols turned down a buyout offer from Brookfield Capital Partners, believing the offer undervalued the company.
• The head of Volkswagen’s North American division resigns.
• Nokia is rebounding after T-Mobile US said it had no plans to end its partnership, contrary to rumors that had been circulating.
• Inditex is increasing the number of flights from India to avoid shipping delays, according to Reuters.
• IBEX buys back its shares held by Resource Group International for $70 million.
• The WHO has approved a second vaccine against mpox (produced by the Japanese KM Biologics) for emergency use, after that of Bavarian Nordic.
• Glencore has partnered with Ceibo to improve copper extraction at its Lomas Bayas mine in Chile.
• SGS confirms its outlook for the 2024 financial year.
• EFG International records net profit down over 10 months.
• Arbonia appoints new general manager.
• The main publications of the day : Sage Group, Hal Trust…

From North America

• Keysight jumped 9.5% outside the session after its accounts.
• Walmart and other major US companies fear higher prices in the event of new tariffs.
• AeroVironment will buy BlueHalo for $4.1 billion in stock.
• Qualcomm expects to generate $12 billion in revenue from automotive and PC chips within five years.
• Robinhood buys advisory platform TradePMR to move beyond online trading.
• The main publications of the day : NVIDIA Corporation, The TJX Companies, Palo Alto Networks, Target, Snowflake, Raymond James Financial, Williams-Sonoma, Metro, NIO…

From Asia Pacific and beyond

• Seven & i shares are soaring following the announcement that the founding family wants to complete the buyout in the current fiscal year (i.e. by next March).
• Kadokawa’s stock jumped 16% after announcing negotiations with Sony.
• Amcor will acquire Berry Global through an all-stock merger.
• Tesla denies rumors of autonomous driving license with SAIC Motor.
• The main publications of the day :…

The rest of the global publications calendar here.

Lectures