(Boursier.com) – Wall Street, which remains at six weeks of decline, is progressing without much trend minutes from the opening. Despite its overwhelming rebound on Friday, the Nasdaq is still giving up 26.5% compared to its record in November 2021, at 16,057 pts. Nervousness was still felt in the trading rooms even as the “fear index”, the Vix, dropped below 30 on Monday. However, it remains higher than its 200-day moving average (21). Investors continue to fear the impact of central banks ’money restrictions to counter inflation in the global economy. Fears were fueled by China’s data released this morning but also by the announcement of an Empire State manufacturing index from the New York Fed that fell into negative territory in May.
Retail sales in China fell 11.1% in April compared to the same month last year, nearly twice as expected, and industrial production fell 2.9%, its biggest decline since February 2020. For financial markets, this data is almost uncertain because the risk of a sharp economic slowdown amid increased price pressure and rising borrowing costs remains a major concern of operators. Goldman Sachs boss Lloyd Blankfein also urged businesses and consumers to prepare for a recession in the United States, saying it was a “very, very high risk”. Bank economists have lowered their forecasts for growth in the United States. They now expect the economy to grow 2.4% this year and 1.6% in 2023, from 2.6% and 2.2% respectively.
In business news, soap opera Twitter continues to be in the middle of the stage as Walmart and Home Depot release their quarterly accounts tomorrow. One day will also be marked by the publication of retail sales for the month of April as well as industrial production for the same month.
In bond markets, interest rates rose again on Friday after several sessions of decline. They are a bit relaxed again this Monday. The performance of T-Bond in 10 years thus lost 2.2 basis points to 2.897% and the rate of T-Bond in 2 years is at 2.564% (-1.2 bp). Last Monday, the “10-year” exceeded 3.10% and the “2-year” was 2.7%, the highest since November 2018, before undergoing a correction.
gold it seems to have lost its appeal definitely, dropping another 0.3%, to $ 1,806, for the June Comex futures contract. The yellow metal fell nearly 4% last weekfalling to a three-and-a-half month low.
In the money market, the dollar index It still traded at its 20-year high against a basket of benchmark currencies, at 104.5 pts (-0.2%). euro rose weakly 0.16% against the greenback, to $ 1.0428 on the interbank markets in New York.
the bitcoinwhich fell to $ 26,000 on Thursday morning, was trading at about $ 30,189, almost stable for 24 hours, although still far from its November 2021 record at nearly $ 69,000.
Finally, the price of oil disappeared at the beginning of the week. The barrel of American light crude WTI (June futures contract), dropped 0.6% to $ 109.8 on the Nymex, while the Brent from the North Sea dropped 0.8% to $ 110.7. Crude prices are torn between two opposing forces, on the one hand the slowdown in demand due to the less dynamic economy, specifically in China, and on the other hand, the fear of a decline in tied supply. on a European embargo on Russia’s oil. , currently being discussed within the EU. This embargo project, which requires the unity of the 27 Member States to ratify, is still being blocked by Hungary, which is heavily dependent on Russia’s oil and gas.
* JetBlue Airways don’t give up. While Spirit Airlines so far the bid for acquisition is favored Frontier Group, but less so, JetBlue now intends to launch a hostile takeover bid on its low -cost competitor. According to people familiar with the matter quoted by the ‘Wall Street Journal’, JetBlue plans to directly appeal to Spirit shareholders in launching its hostile acquisition, hoping to force Spirit’s leadership to resume negotiations. . At the same time, JetBlue will ask Spirit shareholders to vote against the planned merger with Frontier Group on June 10 in a further effort to influence the company’s executives. As part of its offensive, JetBlue will offer $ 30 per share in cash, but will be willing to raise its offer to $ 33 per share (the value of its initial offer) if Spirit agrees to go into negotiating table and provide the data requested by JetBlue. The tender offer is expected to begin on Monday, May 16 and remain open until June 30, although JetBlue may extend this period, sources told the WSJ. JetBlue is said to have started meeting with some Spirit shareholders.
Spirit is the subject of a standoff between two rival carriers who both see the Florida-based airline as key to their ability to grow and challenge big names in the American industry. Spirit agreed in February to take on Frontier, a Denver-based discount airline, in a $ 2.9 billion cash and stock deal. But JetBlue retaliated in April by unveiling an unsolicited offer of $ 3.6 billion in cash, arguing that the merger with Spirit would create a stronger competitor. Spirit declined the offer, however, because the carrier’s board deemed there was too great a risk that antitrust regulators would ban such a deal. To convince Spirit’s management, however, JetBlue undertook to sell several assets, particularly all of Spirit’s assets in New York and Boston, and added to its offer breach of contract damages of $ 200 million in case the transaction fails for antitrust reasons. An inadequate attempt for the moment. Whatever the winning combination, it will result in the creation of the fifth American carrier behind the three incumbents and Southwest.
* Twitter fell 9.6% to $ 40.72 on Wall Street on Friday, as the richest man on the planet, Elon Musk, who promised to take over the social media network for $ 54.2 per share, 44 billion dollars in total, suspended its offer! “The agreement with Twitter is temporarily suspended pending details supporting the calculation that spam/fake accounts actually represent less than 5% of users “tweet of businessman, boss of You are already here and SpaceX, with a link to a ‘Reuters’ article related to these “false” estimates, article dated May 2. This article from the news agency refers to Twitter’s estimate that fake accounts and spam accounted for less than 5% of total daily active user revenue in the first quarter. Over time, the social network had 229 million users where ads were offered. Musk, which proposed in April acquiring the platform for 44 billion dollars, also estimated that one of the priorities was to remove ‘spam bots’ from the network.
Separately, Elon Musk announced on Saturday that the group’s legal team is accusing him of violating a confidentiality agreement by disclosing that the social network uses a sample of 100 followers to determine the number of fake accounts on the platform. .
* McDonald’s. Quite a symbol. Among the first Western brands to set up in Moscow in 1990, McDonald’s permanent departure of the country following Russia’s invasion of Ukraine. The fast food giant has launched procedures leading to its total exit to the country, where all its restaurants have been closed since March: “the humanitarian crisis created by the war in Ukraine and the increasingly unpredictable conditions the operation led McDonald’s to conclude that the retention The ownership of the Russian business was unshakable. ”
The fast food giant’s Russian operations will be sold to a local investor, McDonald’s said. This exit from Russia should result in the group’s accounts in extraordinary charges of 1.2 to 1.4 billion dollars. However, management confirmed its goals in 2022. The American company has 62,000 employees in Russia, a market that represents 9% of its turnover and 3% of its operating revenue.
* You are already here will delay by at least a week its plan to return production at its Shanghai factory to the level before the Chinese city is locked because of Covid-19, an internal document seen by Reuters shows.
* Ford sold seven million shares of electric car maker Rivian Automotive for about $ 188.2 million, or $ 26.88 per share, according to a stock filing released Friday. This follows the sale of 8 million shares last week, with both deals leaving Ford with a 9.7% stake.
* carlyle will take defense group Mantech International into an all-cash transition that will ultimately cost approximately $ 4.2 billion. Reuters reported in February that ManTech co-founder George Pederson is exploring options for his majority stake that include selling the company. Under the terms of the transaction, ManTech shareholders will receive $ 96 per share, representing a premium of 32% on the closing price on Feb. 2, the last trading day prior to the publication of the first yielding articles. of potential sale.
“Following a comprehensive review of the strategic alternatives, our Board of Directors determined that this transaction was in the best interests of our shareholders and provided them with the most compelling potential maximum value, with cash in a significant premium, ”said Kevin M. Phillips, the boss of ManTech. The transaction was unanimously approved by ManTech’s Board of Directors, which recommended that shareholders vote in favor of the offer. The transaction is expected to close in the second half of 2022, subject to common regulatory approvals.
* Pfizer and Biontech has agreed to postpone delivery of their COVID-19 vaccines for three months to the European Union, preparing for a possible recall campaign in the fall. A delay that does not question the delivery objectives and annual revenue of the two companies.