The Paris Bourse is expected to extend its bearish streak, as the prospect of a Congress vote on a new stimulus package ahead of the November 3 presidential poll appears to be receding. Reports that Russia and Iran tried to interfere in the electoral process also weigh on the trend, not to mention the daily worsening of the health crisis around the world. The session will also be animated by ten publications within the Cac 40, including three after the close.
Discussions in Washington to try to reach a “deal” on a budget package to support the economy seem to be stuck. Democratic House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are due to continue their talks on Thursday, but the chances of the Republican-majority Senate approving a possible deal are very slim. And the fact that Donald Trump has openly accused Democrats of ill will in trying to reach an acceptable compromise should not ease the climate.
Just don’t see any way Nancy Pelosi and Cryin’ Chuck Schumer will be willing to do what is right for our great American workers, or our wonderful USA itself, on Stimulus. Their primary focus is BAILING OUT poorly run (and high crime) Democrat cities and states….
— Donald J. Trump (@realDonaldTrump) October 21, 2020
Moscow, Tehran suspected of electoral interference
Iran and Russia have separately obtained information regarding voter registration, John Ratcliffe, the director of national intelligence, told a press conference on Wednesday evening. The information obtained is accessible to the public and no hacking operation is involved, reports Bloomberg, citing sources familiar with the matter. The risk of exploitation by the two US presidential candidates of this case of foreign interference is high and ” reinforces the possibility of a contested outcome, particularly in the event the race is tighter than the polls indicate at this time », Underlines Eleanor Creagh, strategist at Saxo Capital Markets.
On the face of the Covid-19 pandemic, the government presented to the Council of Ministers on Wednesday a bill on the extension of the state of health emergency until February 16. Belgium could impose a lockdown next week, according to a spokesperson for the health authorities, while the Rome region will impose a curfew from midnight to 5 a.m., Reuters said, citing a source within the regional executive. Finally, nearly two-thirds of American states are in a so-called danger zone in the face of the spread of the coronavirus, and six announced a record number of infections on Wednesday, including the particularly disputed pivot state of Wisconsin.
STMicro and Schneider raise their forecasts
STMicroelectronics raised its revenue target for the current fiscal year, which had already risen at the start of the month, after seeing this indicator exceed its forecasts in the third quarter, in accordance with preliminary data presented in early October.
Driven by a better than expected third quarter, driven by orders placed and restocking on certain distribution channels, the French manufacturer of electrical equipment Schneider Electric adjusts upwards its estimates for 2020: the turnover will be further down, but this should be between 5 and 7%, against an initial range of 7 to 10%. The operating margin (adjusted Ebita) will be between 15.1 to 15.4%, against a previous forecast of 14.5 to 15%.
For its part, the software publisher Dassault Systèmes redesigns its estimates. For 2020, its turnover will finally be between 4.44 and 4.46 billion euros, slightly below the previous range (4.51 to 4.56 billion), but the operating margin will be a little lower. above what was expected, since it will be between 29.8 and 30%, against 29.3% to 29.4% previously. The group benefits in particular from the dynamism of Medidata in the medical sector.
Acts, for its part, while it did not return to organic growth in the third quarter, recorded a 20% increase in order intake, confirmed its annual objectives and announced three targeted acquisitions in digital, cloud and security.
Thales, it confirms its forecasts for 2020 while its activity has recovered significantly in the third quarter, even if it remains down over one year (-6.1% in published data). The defense and industrial electronics specialist welcomes a return to near-normal productivity and good dynamics in the defense-security sector.
In the luxury-consumer goods sector, Hermès International and Pernod Ricard are on the move. For the luxury saddler, the three summer months ended with a 7% increase in sales at constant exchange rates and + 4% at current exchange rates, thanks in particular to the ” strong activity in the group’s stores (+ 12% at constant exchange rates), the momentum in Asia and a significant improvement in all other regions “, He underlines in a press release. This reflects a turnaround from the first half of the year, when sales fell 24% at current exchange rates (-25% at constant exchange rates). For the rest, the management, cautious, does not provide quantified forecasts because of the uncertainty related to the pandemic of the new coronoravirus.
If the very short-term horizon is still a little blocked for Pernod Ricard – it expects to suffer further from the health crisis in the autumn months – the wines and spirits group hopes to return to internal growth in the second half of the year. Between July and September, a period corresponding to its first quarter, sales fell 10% to 2.24 billion euros, exceeding, however, consensus expectations (2.07 billion).
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