(Boursier.com) – In the wake of European markets, Wall Street Peak rebound for the beginning of this week of Pentecost. Further easing of measures taken to combat the Covid pandemic in China, as well as information from the Wall Street Journal, which indicates that Chinese regulators are going to ease restrictions on giant Didi Global and two other technology companies listed. The United States is well received by operators, even if fears of inflation and rising rates are far from gone … The Dow Jones rose 0.87% to 33,186 points, the Nasdaq recovered 1.84% to 12,235 points, and the S & P500 rose to 1,315 % to 1.315% points.
ECO AND CURRENCY
A monthly report on jobs released by the Department of Labor on Friday showed that in May the US economy created more jobs than expected (390,000 vs. 325,000 expected), while the unemployment rate remained stable at 3.6%, which indicates the stability of the labor market and may encourage the US Federal Reserve to accelerate the increase in its interest rates. In the United States, markets expect rates to rise by half a point in June and July and by almost 200 basis points by the end of the year. Goldman Sachs economists, however, believe that the Fed can implement its plan to aggressively raise rates without leading the country into recession.
Today’s economic agenda in the United States is empty, and the highlight of the next few days is scheduled for Friday with a consumer price index for May. “The employment release confirmed to investors that the recovery is ongoing,” said Peter Essele, head of portfolio management at the Commonwealth Financial Network. “However, the downside is that inflation will continue to be a problem due to strong consumer demand, wage pressures and rising commodity prices.”
In US bond markets at the beginning of the week, the yield of sovereign states is rising again against the background of the more “hawk” Fed, which also began to reduce its balance on June 1. Implementation T-Bond in 10 years rose 3.8 basis points to 2.972%, while the rate T-Bond for 2 years develops to 2.691% (+3.9 points).
In the foreign exchange market, dollar index returns 0.05% to 102.1 points relative to the basket of reference currencies, while euro stable at $ 1.072 gold, is also almost stable at $ 1,853 per ounce under the August Comex contract. in bitcoin jumped sharply above $ 30,000, pointing to $ 31,420, up 5.7% from 24 hours on Coindesk.
Oil is making some profit due to the sharp rise in oil prices from Saudi Arabia to Asia in July and fears of insufficient supplies, despite OPEC + ‘s decision to increase monthly production by 648,000 barrels per day in July and August. Barrel of American light oil WTI (July futures) on the Nymex fell 0.4% to $ 118.4, while Brent The North Sea fell 0.4% in August to $ 119.2 on the ICE. Oil prices have just risen for the sixth week in a row, also caused by riots over the war in Ukraine.
VALUES TO BE HEALED
* You are here rose by 3%, regaining some of the positions lost on Friday due to doubts expressed by its CEO Elon Musk about the economic prospects and the need to reduce the carmaker’s workforce by about 10%. On Saturday, the billionaire returned to his remarks, assuring that the total workforce of the group will increase over the next 12 months …
* Didi Global has grown on Wall Street by more than … 50% to $ 2.80! According to the Wall Street Journal, Chinese authorities will complete an investigation into the Chinese group and are preparing to give permission to the giant, which is engaged in transport services, to re-launch its program in China this week. This is the latest signal to investors that promises to ease pressure on China’s Internet sector are beginning to bear fruit.
* JetBlue Airways (+ 2.3%) improves its supply Spirit Airlines !! The latter, who has so far advocated a takeover tender Border groupAlthough lower, JetBlue is now offering him overcompensation for the termination of the contract of $ 150 million, or $ 350 million in total ($ 3.20 per Spirit share) if the transaction is banned by competition authorities. $ 100 million more than Frontier offers. In addition, Forest Hills, New York, now offers $ 1.50. US cash per share (approximately $ 164 million) in severance pay, structured as a cash dividend to Spirit shareholders, shortly after Spirit shareholders voted to approve the merger of the two groups. Thus, JetBlue offers the shareholders of the Florida carrier $ 31.5 per share in cash.
JetBlue has sent a letter to the Spirit board of directors with an improved proposal. In it, JetBlue CEO Robin Hayes said: “Combining JetBlue and Spirit would create a real domestic competitor to dominant companies, providing low prices and a great experience for more customers, more opportunities and well-paid jobs for crew members, and more value for shareholders. The key features of our expanded offering – cash advance and increased repayable severance pay – reflect the seriousness of our commitment and underscore our confidence in completing this operation. In addition, given the similar regulatory risks of both operations and the Increased Commission for the reverse break that we are ready to provide, we believe that our improved proposal is the best proposal in all respects. “
Spirit rejected JetBlue’s initial $ 3.6 billion offer, prompting a hostile $ 3.3 billion takeover bid from the same predator. But Spirit has so far postponed the proposal because the carrier’s board believes there is too much risk that antitrust regulators will ban the deal. On Thursday, Frontier, which is offering Spirit $ 2.9 billion in cash and shares, also raised its suspension fee to $ 250 million, or $ 2.23 per share.
* apple (+ 2%), which holds its traditional annual developer conference on Monday, is following information on a possible agreement in Europe to adopt a universal charger for all manufacturers of smartphones and tablets.
* Starbucks (+ 1.5%). The coffee chain has announced that Howard Schultz will remain its interim executive director until March 2023, pending the search for a permanent successor. The interim manager also told the Wall Street Journal that the next group leader would be outside the company: “For the future of the company, we need an area of experience and knowledge in a number of disciplines that we do not currently have.” I don’t have one, “Schultz said.” Whoever takes the helm will inherit a company that is still recovering from the pandemic, especially in China, and will face growing barista efforts to unite in unions in the United States.
The group recently announced that it would raise the salaries of its current employees and redouble its efforts to train new employees to meet the baristas’ desire to form unions. Starbucks will spend $ 1 billion on salaries, training and a better work environment. However, about 50 cafes, whose workers have joined unions, will not benefit from these measures, the department said.
* Keurig Dr. Pepper (+ 4%) integrates the S&P 500 index before the opening of the markets on June 21, as well as ON Semiconductor and VICI properties.
* Abbott Laboratories (+ 1%) announced over the weekend the resumption of its formula plant in Sturgis, Michigan, which raised hopes of resolving an unprecedented shortage of infant milk in the United States. The company will resume production of EleCare milk and other special formulas, and the first EleCare products will be available to consumers around June 20. The health regulator, the FDA, said on May 19 that the plant plans to resume operations within a week or two.
Abbott closed its factory and recalled boxes of formula in February following reports of bacterial infections in children who consumed the formula. Two babies died. This exacerbates the supply shortage in a country where, according to federal data for 2020, less than half of infants were exclusively breastfed during the first three months. According to Datasembly, on May 22, about 73% of children’s products were not available in the United States. Prior to this mass recall, Abbott controlled 40% of the domestic baby formula market, including Similac, but the market share of other companies, such as Reckitt Benckiser, has risen sharply since then.