Long hesitant, the Paris Stock Exchange settled comfortably in the green in the middle of the afternoon, taking advantage of the progression of Wall Street, where the Dow Jones gains 0.8% and the Nasdaq Composite 2%. The S&P 50 extended index continues to flirt with its record set on February 19 at 3,393.52 points. At the close, the star index Cac 40 took the opportunity and closed in the green for the fourth session in a row: it won 0.90%, to 5.073.31 points, in a transaction volume of 2.7 billion euros.
Deadlock in Congress
This progression, however, hides concerns. Both on the health situation and on the American aid plan presented on Saturday August 8 by Donald Trump. There is a legal risk in this regard, since it is to Congress, and not to the president, that the American constitution entrusts most budgetary decisions.
For the moment, it is the dead end. On Tuesday evening, Republican Senate leader Mitch McConnell was very skeptical, in an interview with Fox News, of the resumption of negotiations. ” The endless procrastination between Democrats and Republicans in the United States over the plan to help businesses and individuals hit hard by the coronavirus crisis is taking a dramatic turn by taking a significant part of the population hostage american », Commented, Tuesday, John Plassard, sinvestment specialist at Mirabaud. Since Tuesday, nothing has changed. « If these discussions with obvious political overtones were to continue, it is safe to say that the end of the year in the United States could be economically catastrophic. He added.
According to a Goldman Sachs survey, 84% of U.S. small businesses that received PPP money (Paycheck protection program) exhausted their funding by the first week of August and only 16% say they are confident in their ability to maintain their payroll without further assistance. Worse still, they are only 37% of these small businesses to estimate that they can survive a new wave of traffic restrictions …
Despite this situation, the markets are trending upwards, thanks in particular to statements by Donald Trump. Washington has made the decision to order 100 million doses of Moderna’s Covid-19 vaccine, which is currently in development. The bill amounts to $ 1.5 billion. The biotech America, led by French Stéphane Bancel, began last month the final phase of clinical trial of its potential vaccine, mRNA-1273. The tests are expected to involve some 30,000 participants and end in September.
Takeover bid in telecoms
In the middle of the summer, you should not rely on company publications to boost exchanges. But the telecoms sector stood out early in the morning. American Liberty Global launches friendly takeover bid for Switzerland’s Sunrise Communications at a price of 110 Swiss francs per share, on which the operator is listed on the stock market: + 26.6% to 109.1 francs. Sunrise Communications achieved the best performance in the index Stoxx 600 major European stocks, closely followed by Freenet (+ 16.6%). The German has undertaken to bring to the offer the 24% of the capital it owns in the Swiss operator. The telecoms Stoxx posted the largest sector increase in Europe. In Paris, Orange took 1.15% and Iliad recorded the largest increase in the SRD with a gain of 3.88%.
Among the declining values are those of the aeronautical compartment, like Safran (-2.73%) and Airbus (-1.65%), which had benefited the most from the increase in recent days.
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