Black Friday: Big discounts on European stocks!

European markets took advantage of Wall Street's closure yesterday to regain some ground. Let's be clear: There is no causal relationship between the two. But at least it saves me from harping on the current refrain: American stocks capture almost all the light and leave only the crumbs for other markets. It must be said that with a gain of 5% since the beginning of November, the S&P500 has crushed the competition. The Stoxx Europe 600 gains 0.4% at the same time and has no interest in languishing today if it wants to maintain a positive monthly performance. The CAC40 is at -2.2% in November, so much so that it would take a miracle to redress the monthly bar. Since we are in France, let's stay there to tell the unusual scenario that unfolded this week on the French's favorite speculative issue.

In Paris, when a qualitative stock leaves the top of the Parisian stock market, let's say Atos SE yesterday (-23%), others replace it, like Casino (+26%) or Emeis (+4% ). A bit as if it took three years for the meme stock trend to row across the Atlantic. Note for grandma (who doesn't like the second degree): Atos and Casino are not qualitative stocks. Neither does Emeis, but shush, they're hosting grandma so you shouldn't say too much bad things.

Oh yes, because Atos SE went down yesterday. Almost a trifle, since the title lost 23%. Suffice it to say, not much for a stock that has increased more than sixfold in three sessions. And again, between last Friday's price (0.1566 EUR) and the highest point reached during the session yesterday (1.73 EUR), the action was multiplied by 11. At that time, that is – say at 12:28 p.m. precisely, Atos has potentially become the largest French company, and the second largest in Europe. In your face, LVMH!

Indeed, the recapitalization of the failing group should result in capital divided into some 244.78 billion shares (read billion). We still do not know at this stage the precise number of securities in circulation which may arise from the capital increase and from all the convertible trinkets granted to creditors. But let's say that it is the ceiling of 244.78 billion, as mentioned in the prospectus of the capital increase. 244.78 billion multiplied by 1.73 EUR, that gives us a capitalization of 423 billion euros. Yes, potentially, Atos is the largest capitalization on the French stock market, far ahead of LVMH and its 295 billion euros, and not so far from the 443 billion euros of Novo Nordisk, the number one on the continent. Does that bother you? Us too. We had already written about this brainless phenomenon here when Emeis was still called Orpea. By the way, Emeis has lost 99% of its value since this period (despite the rent paid by grandma). Atos will publish the results of its fundraising on December 2 and will deliver the new shares on December 10. Until then, apart from any fundamental consideration, speculating on Atos with the right timing is better than bitcoin.

Today's financial news is dominated by the rebound in Chinese stocks, after a new rumor according to which Beijing could reduce the RRR, the required reserve ratio of the country's banks, so that they have more resources to lend money. money and boost growth. The information comes from the state press, which cites a former chief of the Chinese central bank, which means that the Party has validated the leak. At the same time, local authorities have extended the exemption from customs duties for certain products imported from the United States. A decision interpreted as a sign of opening in the context of the ongoing commercial standoff.

In Europe, Eurostat is due to release the preliminary inflation figure for November at 11:00 a.m. The optimistic fringe of the financial community secretly hopes that price developments will be weak and compatible with a double rate cut (50 basis points) from the ECB next month. But this is unlikely, because German inflation published yesterday showed a slight acceleration. The predictions are currently in favor of an easing of 25 basis points. The pressure eased a little yesterday on the French debt, while political negotiations continue to avoid the fall of the Barnier government. The S&P agency must update this evening, after the close, its analysis of French financial solidity. There is not expected to be a downgrade of the “AA-” rating, but there is a chance that the outlook for this rating will change from “stable” to “negative”.

In Asia Pacific, Tokyo fell again by 0.4% after the yen hit a one-month high. South Korea plunges 2% amid fears for growth and a decline in the technological universe. India rebounded by 1% after a complicated session yesterday. Australia ends the last session of the week with a slight decline after its records from the day before. European leading indicators are indecisive.

The CAC40 lost 0.3% to 7154 points in the first exchanges. The SMI is down 0.1% to 11,699 points. The Bel20 dropped 0.2% to 4209 points.

Today's economic highlights

The market is especially interested in European inflation for November, published at 11:00 a.m. The whole agenda here.

The main changes in recommendations

• Accor: JP Morgan goes from neutral to overweight with a price target raised from 44 to 54 EUR.
• Anglo American: Jefferies goes from hold to buy with a price target raised from 2500 GBX to 2850 GBX.
• Anheuser-Busch Inbev: Zacks maintains its neutral recommendation with a reduced price target from $69 to $57.
• Compagnie Des Alpes: Oddo BHF maintains its outperformance recommendation with a price target raised from 21 to 22 EUR.
• Edenred: JP Morgan maintains its recommendation to overweight with a price target reduced from 65 to 56 EUR.
• Elior Group: JP Morgan goes from neutral to overweight with a price target raised from 3.50 to 4.50 EUR.
• Euronext: HSBC lowers its buy to hold recommendation with a price target raised from 108 EUR to 110 EUR.
• Geberit: Kepler Cheuvreux goes from hold to buy, aiming for 630 CHF.
• Johnson Matthey Plc: Citigroup remains at neutral recommendation with a price target reduced from 1820 to 1460 GBX.
• L'Oréal: Deutsche Bank maintains its sell recommendation with a price target reduced from 335 to 280 EUR.
• LDC: Euroland Corporate maintains its buy recommendation and reduces the price target from 92 to 89 EUR.
• Naturgy Energy Group: JP Morgan improves its recommendation from underweight to neutral with a price target of 25 EUR.
• Pluxee: JP Morgan maintains its neutral recommendation with a price target reduced from 28 to 25 EUR.
• Premier Foods: Berenberg starts monitoring for purchase with a price target of 240 GBX.
• Rémy Cointreau: AlphaValue/Baader Europe maintains its accumulate recommendation and raises the price target from 68.10 to 72 EUR. Barclays maintains its recommendation to underweight with a price target reduced from 51 to 39 EUR. Jefferies remains a buy with a price target reduced from 90 to 80 EUR.
• Safran: Jefferies remains to be kept with a price target raised from 220 to 230 EUR.
• Sodexo: JP Morgan maintains its neutral recommendation with a price target raised from 88 to 90 EUR.
• Solvay: Oddo BHF maintains its outperformance recommendation with a price target raised from 30 to 37 EUR.
• TotalEnergies: Grupo Santander moves from neutral to outperformance with a price target reduced from 70 EUR to 68 EUR.
• Zurich Insurance: Octavian AG maintains its hold recommendation with a price target raised from 514 to 575 CHF.

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)

• Legrand is reorganizing its sites in France against a backdrop of the construction crisis, without layoffs at this stage.
• The European Commission is closing the ten-year-old tax files of Fiat (Stellantis), Amazon and Starbucks which concerned (surprise!) Luxembourg and the Netherlands.
• Saint-Gobain wants to reappoint Benoit Bazin as CEO, a position he has held since 2021.
• Elis announces the acquisition of Carsan, a small Spanish company.
• Pluxee acquires a benefits company linked to employee mobility in Brazil, without specifying the price paid.
• Argan announces a 9,000 m2 project in Lens.
• Frey signs €150 million in financing.
• Entech signs a contract with Crédit Mutuel Arkéa for the supply of photovoltaic shade houses.
• Bpifrance lends €9 million to Afyren.
• Valbiotis announces a partnership with complementary health insurance Asetys.
• The main publications of the day : Laurent-Perrier, Bleecker, Signals Girod… The rest here.

In the big world

Important (and not so important) announcements

D’Europe

• Generali and Natixis continue their negotiations on joint asset management, according to Il Sole 24 Ore.
• Delivery Hero prices the IPO of its subsidiary Talabat in Dubai at the high end of the range (1.60 UAE dirhams per share).
• Syensqo completes the first tranche of its €300 million share buyback program.
• Vastned Belgium and Vastned Retail will merge to restructure and reduce costs.
• Banco de Sabadell chooses Marc Armengol to replace Robin Bulloch at the head of TSB.
• Orkla is reportedly considering listing its India operations in 2025, Bloomberg reports.
• EQT withdraws its planned acquisition of the Indian company Theobroma.
• Martin Korbmacher has resigned as chairman of the supervisory board of Flatexdegiro due to a conflict with main shareholder Bernd Förtsch.
• The main publications of the day : CPI Property Group, Dottikon, Elia…

From North America

• Canada's Competition Bureau is suing Google for alleged anti-competitive practices in the online advertising market.
• The main publications of the day : none…

From Asia Pacific and beyond

• Bain Capital, KKR and Fortress are among the funds that have made a bid for Seven & i's holding company, Nikkei reports.
• Woodside Energy is seeking potential partners for its LNG project in Louisiana.
• Samsung Electronics and Samsung SDI have appointed new leaders.
• The main publications of the day : Meituan…

The rest of the global publications calendar here.

Lectures

• After three years of effort, Safran lifts the veil on the aircraft engine of the future (Les Echos).
• European spirits caught between the Chinese hammer and the American hard place (FT Lex, in English).
• How to deal with the AI ​​energy crisis? (The Conversation).
• Revolut, the most valuable fintech in Europe (Bloomberg, in English).
• The Chinese bond market in the process of “Japanization” (Financial Times, in English).
• Russia's sabotage campaign against the West (The Spectator, in English).
• Oil, raspberries, smartphones: What the United States imports from Canada, Mexico and China (Wall Street Journal, in English).
• Javier Milei: “My contempt for the state is infinite” (The Economist, in English).