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GLOBAL MARKETS LIVE: Facebook, Gilead, AB Inbev, Boeing…

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07/15/2019 | 09:35am EST

There are points of tension in the market: between Elliott and Capgemini, or between Facebook and regulators. In Belgium, the king of beer AB Inbev is healing its wounds after the devastating failure of his Asian IPO, but the biotech star Galapagos is shining. Boeing's setbacks on the B737 MAX could last until early 2020, while the Frankfurt Motor Show has something to worry about. US stock-index futures are slightly higher, while global markets are mixed.


S&P 500 futures up 0.1% to 3,018.00
Brent futures up 0.5% to $67.05/bbl
Gold spot little changed at $1,416.17
US Dollar Index little changed at 96.79


Earnings season. Citigroup, Galp Energia, J B Hunt, Axfood and Poxel are among companies reporting earnings.

Elliott's messing with Capgemini. We must keep an eye on the friendly takeover of Altran by Capgemini after the activist fund Elliott has taken positions via swaps on Altran, with the initial intention of not necessarily adding to the offer. But its current motivations are not being very clear. We remember that Elliott had already made the American XPO's task more difficult when Norbert Dentressangle was acquired. The fund still holds 9% of the European subsidiary XPO Logistics, which the parent company was unable to delist for this reason.

Thumb up. Facebook will pay $5 billion to the American authorities for its mistakes in protecting its users' personal data... a punishment considered relatively lenient by the market given the evolution of the stock price. It remains to be seen what the conditions of the amicable settlement between the company and the authorities will be, which should lead to stricter obligations against the social network.

The European star of biotechs. Gilead has signed a major development agreement with Galapagos, worth $5.1 billion, resulting in a rise in the American group's share of Belgian biotech from 12.3 to 22%, and even 29.9% after exercising an option. A transaction that, paradoxically, "secures Galapagos' independence for the next decade", according to Jefferies, and provides it with the necessary resources to accelerate its development. The design office considers that the premium paid on the transaction is a real recognition for the biotechnology company's pipeline, even if the 10-year standstill clause removes a speculative perfume from the file.

Hangover. Anheuser-Busch Inbev has decided not to list its Asian subsidiary on the stock exchange due to a lack of sufficiently favorable conditions. This stunning failure for the Budweiser Brewing subsidiary also deprives the group of a fundraising of $8.3 to $9.8 billion. For Edward Mundy, who is following the case at Jefferies, this cancellation reduces its value by EUR 3 or 4 by the sum of the parts of the case, slows down the rate of debt reduction and delays, but does not eliminate, the next acquisition. Plan B", organic growth, is not uninteresting but not as attractive as the core project. There is therefore still underperformance with a valuation of EUR 63 per share.

Back in 2020 for the B737 MAX? The B737 Max may not return to service until 2020, according to several rumors, even if Boeing is still targeting 2019. The Wall Street Journal, whose sources seem to be in high places at the FAA, talks about January 2020 for a return to flight. American Airlines and United Airlines announced on Friday that they did not anticipate a reopening until next November.

Hallali in Frankfurt. The main German Motor Show is withering away. The September edition promises to be a terrible one, with a colossal list of absentees: Toyota, General Motors, Renault Nissan Mitsubishi, Peugeot (except Opel), Fiat Chrysler, Ferrari, Tesla, Volvo... and others will not make it to Frankfurt.

In other news. Employees at seven Amazon.com centers in Germany yesterday launched a strike for Monday, the American giant's "Prime Day" promotion day. Four investors, including Atlantia, propose to support Ferroviere dello Stato to take over Alitalia. Huawei will cut hundreds of jobs in the United States, the Wall Street Journal learned, after it was banned by the Trump administration, which should however start allowing American companies to trade on a case-by-case basis with the Chinese in two weeks, according to the latest rumors.
Stocks mentioned in the article
ChangeLast1st jan.
ALTRAN TECHNOLOGIES 0.42% 14.485 Real-time Quote.1.87%
AMAZON.COM -0.47% 1878.25 Delayed Quote.2.39%
ANHEUSER-BUSCH INBEV -1.07% 69.99 Delayed Quote.-2.70%
AXFOOD AB (PUBL) -0.48% 198.2 Delayed Quote.-3.41%
BOEING COMPANY (THE) 2.56% 314.9 Delayed Quote.-6.07%
CAPGEMINI SE 0.64% 118.45 Real-time Quote.8.08%
CITIGROUP 0.00% 79.75 End-of-day quote.0.00%
DJ INDUSTRIAL -0.46% 29051.73 Delayed Quote.2.27%
FACEBOOK -0.76% 219.625 Delayed Quote.7.83%
FERRARI -0.80% 155.3 Delayed Quote.4.87%
FIAT CHRYSLER AUTOMOBILES -1.42% 12.046 Delayed Quote.-6.55%
GALP ENERGIA -3.19% 14.1 Delayed Quote.-2.25%
GENERAL MOTORS COMPANY -1.05% 34.58 Delayed Quote.-4.62%
GILEAD SCIENCES -0.47% 63.1111 Delayed Quote.-2.39%
HANGOVER JOE'S HOLDING CORP 7.00% 0.001498 Delayed Quote.-28.67%
J.B. HUNT TRANSPORT SERVICES, INC. -2.83% 103 End-of-day quote.-1.90%
LONDON BRENT OIL -1.82% 61.48 Delayed Quote.-2.27%
MITSUBISHI UFJ FINANCIAL GROUP, INC. -0.10% 582 End-of-day quote.-0.48%
NASDAQ 100 -0.11% 9178.289823 Delayed Quote.4.96%
NASDAQ COMP. -0.20% 9364.662285 Delayed Quote.4.64%
NISSAN MOTOR CO., LTD. -0.46% 631.5 End-of-day quote.0.13%
PEUGEOT -1.57% 19.12 Real-time Quote.-8.80%
POXEL -1.87% 11.56 Real-time Quote.-3.44%
RENAULT -5.06% 36.985 Real-time Quote.-7.65%
S&P 500 -0.32% 3311.11 Delayed Quote.2.82%
TESLA 0.00%End-of-day quote.0.00%
TESLA INC. -0.60% 565.34 Delayed Quote.36.15%
TOYOTA MOTOR CORPORATION -0.39% 7823 End-of-day quote.2.95%
US DOLLAR INDEX 0.00% 97.53 End-of-day quote.0.75%
VOLVO -1.83% 155.2 Delayed Quote.2.90%

Romain Fournier
© MarketScreener.com 2019
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