- Ryanair (RY4C TH) +1.6%
- Qiagen (QIA TH) +1.6%
- Qiagen Upgraded at Morgan Stanley on Undervalued Growth Outlook
- Rio Tinto (RIO1 TH) +0.9%
- Iron Ore Extends Drop to Fourth Day on Sluggish China Recovery
- Vodafone (VODI TH) +0.7%
- Deutsche Bank (DBK TH) -0.8%
- Siemens Energy (ENR TH) -0.9%
- Engie (GZF TH) -1.4%
- ArcelorMittal (ARRD TH) -1.7%
- Watch European Miners as Weak China Recovery Weighs on Iron Ore
- Games Workshop (G7W TH) -1.8%
DAX:
- Qiagen (QIA TH) +1.8%
- Qiagen Upgraded at Morgan Stanley on Undervalued Growth Outlook
MDAX:
- Evonik (EVK TH) +0.8%
- United Internet (UTDI TH) +0.7%
SDAX:
- Shop Apotheke (SAE TH) +1.6%
- Shop Apotheke Raised, But MS Stays Cautious on ePharmacy Sector
- DIC Asset (DIC TH) +1%
- 1&1 (DRI TH) +0.8%
- SGL (SGL TH) -1%
>>> Up
* Africa Oil Raised to Overweight at Barclays; PT C$4.22
* Azelis Raised to Outperform at Oddo BHF
* Chevron Raised to Buy at HSBC; PT $189
* Chevron Raised to Buy at CFRA; PT $172
* Danske Bank Raised to Neutral at JPMorgan; PT 180 kroner
* Qiagen Raised to Overweight at Morgan Stanley; PT 50 euros
* Shop Apotheke Raised to Equal-Weight at Morgan Stanley
* Wulff-Group Raised to Buy at Inderes; PT 4.30 euros
>>> Down
* Abrdn European Logistics Cut to Sector Perform at RBC
* BKW Cut to Reduce at Baader Helvea; PT 160 Swiss francs
* Future PLC PT Cut to 668 pence from 1,153 pence at Canaccord
* Repsol Cut to Hold at HSBC; PT 14.50 euros
* Victrex PT Cut to 1,590 pence from 1,900 pence at Jefferies
>>> Initiation
* AFC Energy Reinstated Buy at Peel Hunt; PT 125 pence
* Cleveland-Cliffs Rated New Neutral at JPMorgan; PT $18
* Coats Rated New Outperform at BNPP Exane; PT 100 pence
* Essentra Rated New Outperform at RBC; PT 260 pence
* GrafTech Rated New Neutral at JPMorgan
* Leroy Cut to Hold at Nordea
* Nucor Rated New Underweight at JPMorgan; PT $130
* Orron Energy Rated New Buy at SEB Equities; PT 17.70 kronor
* Pod Point Group Rated New Buy at Peel Hunt; PT 120 pence
* Precigen Rated New Neutral at JPMorgan
* Steel Dynamics Rated New Underweight at JPMorgan; PT $82
* Stelco Holdings Rated New Neutral at JPMorgan; PT C$48
* U.S. Steel Rated New Neutral at JPMorgan; PT $24
>>> Call
* BKW Cut to Reduce at Baader Helvea Following Strong Rally
* Citi Strategists Hail ‘Return of Bullish Flows’ to US Equities
* Danske Bank Upgraded at JPM on Capital Distribution Capacity
* Essentra New Outperform at RBC on Good Position, Margin Outlook
* Qiagen Upgraded at Morgan Stanley on Undervalued Growth Outlook
* Shop Apotheke Raised, But MS Stays Cautious on ePharmacy Sector
US equity futures rose while Treasury yields and a gauge of dollar strength were little changed after President Joe Biden and House Speaker Kevin McCarthy said they had a productive talk on the debt ceiling. Oil also rose on improved risk appetite while gold’s allure as a haven waned, pushing the precious metal toward the lowest level since the end of March. Jitters struck stock indexes in Asia, with benchmarks in Hong Kong and Tokyo erasing earlier gains. While Biden said he and McCarthy agreed that default was off the table, investors are on tenterhooks with the clock ticking to June 1, when Treasury Secretary Janet Yellen has advised her department may run out of cash. Any agreement would have to be approved by Congress before then and in the meantime investors have jacked up the premium they demand to hold US paper that’s most at risk. The cost of insuring the nation’s sovereign debt against default with derivatives has also climbed. Contracts for the S&P 500 and the Nasdaq 100 increased about 0.2% and Euro Stoxx 50 futures rose marginally. Bitcoin ticked higher for the fourth time in five days. Yields on policy sensitive two-year Treasuries edged up less than one basis point to 4.32% after short-term rates rose Monday. Australian and New Zealand government bond yields followed the moves in Treasuries. The optimism that emerged from the debt talks also pushed yield premiums on Asia ex-Japan investment-grade dollar bonds lower as the spreads set for the tightest in more than two months. he moves Tuesday followed fluctuating fortunes in US markets on Monday, when the S&P 500 drifted between gains and losses before closing flat. The tech-heavy Nasdaq 100 advanced 0.3%, though chipmakers were under pressure after China said products by Micron Technology Inc. failed a cybersecurity review. In Asia, concern is growing about China’s tepid post-pandemic recovery, which is having a negative impact on key commodity prices such as iron ore and copper. Both have both tumbled in recent trading days Signs of a geopolitical thaw between the regional powerhouse and the US helped lift Hong Kong stocks more than 1% on Monday after Biden hinted about improving relations with Beijing. The rally fizzled on Tuesday. Adani Group shares rallied, extending gains spurred by an Indian court panel’s report that found no conclusive evidence of stock-price manipulation as alleged by US short seller Hindenburg Research. Meanwhile, the outlook for the Federal Reserve’s rate path is also on the minds of investors. St. Louis Fed President James Bullard said he’s thinking of two more rate hikes this year, while Minneapolis Fed President Neel Kashkari said if the US central bank pauses next month it should signal tightening isn’t over. US After Hours CSWC +3.1%, NDSN +1.7%, ZM +0.7% up on earnings; GH -7.1% down after filing stock offerings; RNR -3.7% lower after agreeing to acquire AIG's treaty reinsurance business.
Nikkei -0,39% Hang Seng -0,66% CSI -0,86% Shanghai -1,01% Shenzen -0,41%
Eur$ 1,0808 CNH 7,0575 CNY 7,0479 JPY 138,55 GBP 1,2434 CHF 0,8984 RUB 80,1198 TRY 19,8364 WTI$ 72,31 +0,38% Gold 1,962,80 BTC 27,413 +2% ETH 1,863 +2,3%
S&P +0,13% Nasdaq +0,19% EuroStoxx +0,02% FTSE -0,04% Dax -0,02% SMI -0,15%
Macro :
- Citi Strategists Hail ‘Return of Bullish Flows’ to US Equities
- ESG ETF 2023 Expectations? US Weakness, Liquidation Risks
Keep an eye on :
- AVON LN : Avon Protection 1H Revenue $116.2M
- BORR NO : Borr Drilling 1Q Adjusted Ebitda Misses Estimates
- BWLPG NO : BW LPG 1Q Ebitda Beats Estimates
- BYG LN : Big Yellow Group FY Revenue Meets Estimates
- CSGN SW : CDS Panel Rules Credit Suisse Takeover Not a Bankruptcy Event
- DIS US : Disney Begins Third Round of Expected Layoffs, CNN Says
- ENEL IM : Enel North America to Invest >$1b In US Solar Plant (May 22)
- ENT LN : New Zealand Approves 25-Year Partnership Between TAB, Entain
- GGAA US : NextTrip to Go Public in Merger With Genesis Growth Tech SPAC
- HEXAB SS : Hexagon CEO Sees More Opportunities to Scale Up Company: DI
- INDV LN : Opiant Pharma Gets FDA Approval for Opvee NDA
- BAER SW : Julius Baer Assets Under Management CHF429B, Sees Hiring Pickup Amid Uncertainty
- JUVE IM : Juventus Set to Miss Champions League After Court Issues Penalty
- MUL LN : Mike Ashley launches boardroom raid at Mulberry
- NEOEN FP : Neoen, Prokon to Build Finland Wind Farms Totalling 161.2 MW
- NESN SW : Nestle Executive Vice President Magdi Batato to Retire in 2024
- NOVOB DC : Pfizer Shares Rise Following CNBC Report on Weight-Loss Pill
- PFE US : Pfizer Shares Rise Following CNBC Report on Weight-Loss Pill
- PSM GY : ProSiebenSat.1, Sky Revive Talks Over TV Tie-Up in Germany: Rtrs
- SDRL NO : Seadrill Sees FY Adjusted Ebitda $435M to $485M
- GLE FP : SocGen Investors Eye Potential Stock Revival as Krupa Takes Helm
- SPSN SW : Swiss Prime Plans to Issue CHF250M Convertible Notes Due 2030
- TGNA US : Standard General’s Tegna Takeover Dies After Money Goes
- TTE FP : Total’s Mozambique LNG Revival Would Risk $4.7 Billion Loan
- TSN US : Tyson Foods Closes Purchase of Williams Sausage Company
- UBSG SW : UBS Suspends Work on China Mutual-Fund Project: Nikkei
- UPONOR FH : Uponor’s Board Rejects Public Offer From Aliaxis
- XBRANE SS : Xbrane Biopharma Offers SEK100 million Shares
Selfridges, Hermès Quietly Exit Fashion Pact Amid Slow Progress
Four years after a splashy launch around the G7, the CEO-powered climate drive says it’s gearing up to accelerate action. But it has lost high-profile members and so far delivered little more than a handful of pilot projects.
KEY INSIGHTS
- The CEO-powered Fashion Pact was designed to bring together the industry’s decision makers to tackle an increasingly urgent and shared challenge: fashion’s negative environmental footprint.
- So far, its impact rests on a handful of pilot projects. High-profile signatories, including Hermès, Selfridges and Stella McCartney have quietly left.
- The initiative says fluctuations in membership are normal and after spending the last three years laying the foundations, it’s gearing up for swifter action.
Three times a year, the chief executives of some of fashion’s most powerful companies gather to discuss a shared, and increasingly urgent, challenge: how to cut down the pollution the industry spews into the world’s air, oceans and soil.
The regular high-level gatherings are the work of the Fashion Pact, a voluntary CEO-powered initiative launched around the G7 in 2019 at the urging of French President Emmanuel Macron. Its members are said to represent the decision-making power of roughly a third of the industry by volume and include luxury giants Kering, Chanel and Prada, sportswear titans Nike and Adidas and fast fashion behemoths H&M Group and Inditex.
That political and executive clout was meant to separate the Fashion Pact from myriad other splashy, but ultimately low-impact, corporate commitments.
Four years in, its track record is murky.
High-profile signatories including Hermès, Selfridges and Stella McCartney have quietly left, and action has largely been limited to a handful of pilot projects and scoping programmes.
Selfridges and Stella McCartney confirmed they had left the organisation. Hermès did not respond to requests for comment.
Fluctuations in membership are normal for industry initiatives, Fashion Pact executive director and secretary general Eva von Alvensleben said in an emailed statement. Typically companies may leave a programme for a variety of reasons, including cost, team capacity or differing priorities and pace of action. The Fashion Pact has also eliminated one member for a lack of engagement this year, von Alvensleben said. Meanwhile, new members, including Asics, Chloe and J. Crew Group, continue to join.
Long-Term Focus, Near-Term Pressure
Members of the initiative’s leadership said it’d spent the last three years laying the groundwork for swifter action. The group is focused on long-term projects that require buy-in from multiple stakeholders and will take time to show impact on the ground, they said. And though it’s been shy about trumpeting updates while still setting its foundations, it’s tracking members’ efforts internally.
“If you look at what it takes, in reality, to get people on the same page, educate people, develop these plans, align around that. I think, in all fairness, that the industry can be pleased,” said Fashion Pact co-chair Paul Polman.
Exactly how the group is performing against core goals to reduce emissions, plastic packaging and the impact of raw materials is difficult to track. Members are meant to report their progress annually but do so selectively, and in some cases, not at all. Many have yet to meet the basics of the Fashion Pact commitment. For instance, signatories are meant to set verified, science-based targets to cut their emissions, but nearly 40 percent have not officially committed to do so.
Increasing this proportion is a priority for the Fashion Pact, and many members are working on the process, von Alvensleben said in an emailed statement, adding that the initiative is designed to accommodate companies at different stages of their sustainability journey.
The Fashion Pact counts among its achievements increased focus on fashion’s impact on nature, still an emerging topic when the organisation made biodiversity one of three core environmental issues in its 2020 action plan. More than 40 percent of members have now set one or more biodiversity-related targets with the support of tools and research developed by the initiative. The number with specific biodiversity strategies in place has grown from 10 percent to 21 percent in the last two years, it said.
How this increased engagement actually translates into action to reduce impact and advance the group’s collective goal to support zero deforestation by 2025 remains to be seen.
In December, members kicked off a programme to collectively finance renewable energy projects in Europe in exchange for clean power credits. The project represents the most advanced example so far of the kind of industry-level action the Fashion Pact was designed to unlock, bringing together competitors to negotiate complicated, long-term transactions. It aims to add 100,000 megawatts a year of new renewable electricity generation to the grid, a scale that wouldn’t have been possible for most companies to negotiate on their own, said Polman. The initial project includes 12 companies, but is intended as a test case for further action.
“We know that we haven’t moved up in the industry as fast as we should, but there are definitely several companies that have shown progress in different ways,” said H&M Group CEO and in-coming Fashion Pact co-chair Helena Helmersson.
The group is better positioned to accelerate its efforts because of the work of the last few years, while an incoming wave of sustainability regulations is helping to generate more momentum, she added. “The fact the regulations are coming, it’s putting a whole different sense of urgency … The approach from CEOs and our organisation is really to get to action quickly.”
Time is running short. At this point, global temperatures are “more likely than not” to breach 1.5C above pre-industrial levels within the next five years, the globally agreed threshold beyond which it will become difficult to avoid the worst effects of global warming, according to research from the World Meteorological Organisation published last week.
The fashion industry is already feeling the fallout from extreme weather in raw material supply chains and consumer shopping habits. Meanwhile, a wide-ranging greenwashing crackdown over the last 18 months has ratcheted up criticism of splashy, but voluntary, corporate climate commitments and amped up the pressure on companies to deliver real results.
Beyond Pilot Programmes
As Helmersson takes over from outgoing co-chair Kering CEO François-Henri Pinault, the Fashion Pact has its work cut out for it.
Going forward, it plans to increase focus on tackling emissions in the industry’s supply chain, where most environmental impact takes place. Its efforts rest on a combination of resource and knowledge building and joint projects to test-drive potential solutions.
In addition to the renewable energy power purchasing project the initiative recently launched, it’s working on a pilot programme to explore ways to incentivise lower-impact cotton cultivation. But the strategy to turn these into impactful collaborations at scale remains vague.
Helmersson acknowledged work is still ongoing to dig into the financial and technical support brands could offer their suppliers to decarbonise or pursue fuel efficiency projects, but she remained upbeat about the organisation’s potential to drive change.
“It’s very rare to see such a big part of the industry coming together like this and also doing it on the CEO level,” said Helmersson. “Over the next few years, it has the potential to be game-changing. I truly, truly hope and think it is possible that this large coalition will be able to show really big steps when it comes to the climate agenda.”
Casino: financiers impose their rescue in the face of the gradual drowning of the Teract plan
An alliance with Teract as it has been imagined since January seems increasingly unlikely. The Casino group is now moving towards negotiations with its creditors, in close collaboration with Daniel Kretinsky. The time of the industrial project will come just after, which does not prevent its development behind the scenes.
Casino's creditors have until Tuesday evening, 5 p.m., to agree to enter into conciliation proceedings without asking to apply the company's case of default. If all the bankers, hedge funds and other non-net debt specialists agree, it will be a first victory for Jean-Charles Naouri's breathless group. The conciliation will then begin (decided by the company's board of directors), then a hard phase of negotiations to erase part of the group's debt.
Only Daniel Kretinsky's project has highlighted this obligation to erase the group's slates. The project initiated in January with Teract still recently consisted of stuffing most of the debt into a new holding company to keep only 2 billion euros out of 6 billion, in an entity where all the good assets such as Monoprix would be nestled. and Franprix. This option seems so unrealistic that Fitch Ratings, which downgraded Casino's rating again last week, chose to ignore it in its analysis.
Cash or shares
As in a good divorce, the phase which should open on Wednesday will therefore consist of Casino and its creditors agreeing on the terms of their "separation", under the supervision of the commercial court represented by the agent Marc Sénéchal. The creditors in question are those called "unsecured", who hold 3.6 billion euros in debt. Facing them, Jean-Charles Naouri will no longer be alone at the helm. Because it is the contribution of the 1.1 billion euros of fresh money proposed by Daniel Kretinsky and Marc Ladreit de Lacharrière which reassures these creditors. The company and its two major shareholders will therefore have to speak with one voice.
The team is working very discreetly via its lawyers (LLA of 05/16/23) to offer a nice discount. They offer creditors to crush their debt in exchange for 35 to 40% of their starting stake, instead of the 20% available on the market today. They will be offered a "mix and match", that is to say the choice to convert their debt into shares or cash, or even to opt for a mixture of the two.
Discordant communication
Faced with these very prosaic financial realities, the so-called "industrial" project carried out by the team of InVivo and the trio Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari has appeared to be more and more complicated to implement in recent weeks. . The creation of their two companies - one with the stores, which would be controlled by Casino, and the other, called Teract Farm, controlled by Teract to ensure the supply - is difficult to convince without the contribution of substantial fresh money . However, next to the two indebted Matthieu Pigasse and Moez-Alexandre Zouari, Xavier Niel is still very discreet about his desire to align the millions. The real financier of Teract is for the moment Thierry Blandinières, the general manager of InVivo. But after the takeover of the cereal producer Soufflet for more than 2 billion euros in 2021, the European agricultural products giant no longer has its pockets filled.
The discordant communication of this quartet did not reassure observers either, starting with Jean-Charles Naouri himself. The exclusive discussions between the bankers, Rothschild for Casino and Centerview Partners for Teract, aspired to get into the hard last week. According to our information, they related to the choice of the Casino group's hundred or so stores in which the concept of Grand Marché-Frais d'ici, dear to Moez-Alexandre Zouari, could be deployed (LLA of 07/04/22). But representatives from Casino and Teract didn't seem to be able to agree on the list.
The industrial project is of course essential to the long-term survival of the company. However, it seems increasingly premature in the face of the wall of debt. As a reminder, if the Casino/Kretinsky team succeeds in seducing at least two thirds of the unsecured creditors, the Casino company could then open an accelerated safeguard (two months renewable once) to implement the agreement reached with this majority of creditors. The backup plan should then mix financial restructuring and an industrial recovery plan.
Debt again and again
It is therefore not before this summer, or even the start of the school year in September, that discussions on the industrial project will really begin. However, the vultures are already circling more or less discreetly around Casino. Auchan, Carrefour, Couche-Tard... a lot of action
Casino : les financiers imposent leur sauvetage devant la noyade progressive du plan Teract
Une alliance avec Teract telle qu'elle a été imaginée depuis janvier semble de plus en plus improbable. Le groupe Casino s'oriente désormais vers une négociation avec ses créanciers, en étroite collaboration avec Daniel Kretinsky. Le temps du projet industriel viendra juste après, ce qui n'empêche pas son élaboration en coulisse.
Les créanciers de Casino ont jusqu'à ce mardi soir, 17 heures, pour accepter d'entrer en procédure de conciliation sans demander à appliquer le cas de défaut de l'entreprise. Si tous les banquiers, hedge funds et autres spécialistes de dette pas nette donnent leur accord, ce sera une première victoire pour le groupe à bout de souffle de Jean-Charles Naouri. S'engagera alors la conciliation (décidée en conseil d'administration par l'entreprise), puis une phase dure de négociations pour effacer une partie de la dette du groupe.
Seul le projet de Daniel Kretinsky a mis en avant cette obligation d'effacement des ardoises du groupe. Le projet initié en janvier avec Teract consistait encore récemment à fourrer l'essentiel de la dette dans une nouvelle holding pour n'en garder que 2 milliards d'euros sur 6 milliards, dans une entité où seraient nichés tous les bons actifs tels que Monoprix et Franprix. Cette option semble si peu réaliste que l'agence Fitch Ratings, qui vient encore de dégrader la note de Casino la semaine dernière, a choisi de l'ignorer dans son analyse.
Cash ou actions
Comme dans un bon divorce, la phase qui devrait s'ouvrir mercredi consistera donc pour Casino et ses créanciers à se mettre d'accord sur les termes de leur "séparation", sous la surveillance du tribunal de commerce représenté par le mandataire Marc Sénéchal. Les créanciers en question sont ceux dits "non sécurisés", qui détiennent 3,6 milliards d'euros de dette. Face à eux, Jean-Charles Naouri ne sera plus seul aux manettes. Car c'est l'apport des 1,1 milliard d'euros d'argent frais proposé par Daniel Kretinsky et Marc Ladreit de Lacharrière qui rassure ces créanciers. La société et ses deux actionnaires de poids devront donc parler d'une seule voix.
L'attelage travaille très discrètement via ses avocats (LLA du 16/05/23) à proposer une belle décote. Ils offrent aux créanciers d'écraser leur dette en échange de 35 à 40 % de leur mise de départ, au lieu des 20 % disponibles sur le marché actuellement. Il leur sera proposé un "mix and match", c'est-à-dire le choix de convertir leur dette en actions ou en cash, ou encore d'opter pour un mélange des deux.
Communication discordante
Face à ces réalités financières bien prosaïques, le projet dit "industriel" porté par l'attelage d'InVivo et du trio Xavier Niel, Matthieu Pigasse et Moez-Alexandre Zouari est apparu comme de plus en plus compliqué à mettre en œuvre ces dernières semaines. La création de leurs deux entreprises - l'une avec les magasins, qui serait contrôlée par Casino, et l'autre, baptisée Teract Farm, contrôlée par Teract pour assurer l'approvisionnement - peine à convaincre sans l'apport d'argent frais conséquent. Or, à côté des deux endettés Matthieu Pigasse et Moez-Alexandre Zouari, Xavier Niel reste encore très discret sur sa volonté d'aligner les millions. Le vrai argentier de Teract est pour le moment Thierry Blandinières, le directeur général d'InVivo. Mais après le rachat du céréalier Soufflet pour plus de 2 milliards d'euros en 2021, le géant européen des produits agricoles n'a plus les poches remplies.
La communication discordante de ce quatuor n'a pas non plus rassuré les observateurs, à commencer par Jean-Charles Naouri lui-même. Les discussions exclusives entre les banquiers, Rothschild pour Casino et Centerview Partners pour Teract, ambitionnaient d'entrer dans le dur la semaine dernière. Selon nos informations, elles portaient sur le choix de la centaine de magasins du groupe Casino dans lesquels le concept de Grand Marché-Frais d'ici, cher à Moez-Alexandre Zouari, pourrait être déployé (LLA du 07/04/22). Mais les représentants de Casino et Teract ne semblaient pas réussir à se mettre d'accord sur la liste.
Le projet industriel est bien entendu essentiel à la survie à terme de l'entreprise. Il paraît pourtant de plus en plus prématuré face au mur de la dette. Pour rappel, si l'équipage Casino/Kretinsky réussissait à séduire au moins deux tiers des créanciers non sécurisés, la société Casino pourrait alors ouvrir une sauvegarde accélérée (deux mois reconductibles une fois) pour mettre en œuvre l'accord trouvé avec cette majorité de créanciers. Le plan de sauvegarde devrait alors mixer restructuration financière et plan de relance industrielle.
La dette encore et toujours
Ce n'est donc pas avant cet été, voire la rentrée de septembre, que s'ouvriront véritablement les discussions sur le projet industriel. Pour autant, les vautours tournent déjà plus ou moins discrètement autour de Casino. Auchan, Carrefour, Couche-Tard... beaucoup d'acteurs regardent de très près les actifs du groupe et prennent déjà langue avec Daniel Kretinsky. Moez-Alexandre Zouari, qui détient en tant que master franchisé quelque 200 Franprix et Monoprix, restera un acteur incontournable. Intermarché se félicite, de son côté, d'avoir déjà fait sa liste de courses en ayant négocié directement avec Casino 130 points de vente parmi les 8 000 que compte le groupe.
Il restera néanmoins encore un bon paquet de dettes dans le groupe. En additionnant les 2,05 milliards d'euros de lignes de crédit largement tirées auprès des grandes banques françaises (LLA du 09/05/23), les 1,4 milliard d'euros de prêt à terme et les 600 millions d'obligations dites "Quatrim", c'est plus de 4 milliards d'euros qui resteront dans la corbeille du futur acquéreur. On a vu plus jolie mariée !