ALSTOM (Satellites and b-Transition) has won a €2.7bn contract with Danish operator DSB to supply 100 electric train sets for delivery between 2024 and 2030 and made progress in talks over the “Grand Paris” contract originally negotiated by Bombardier Transport. Good news.
SAINT-GOBAIN (Satellites and b-Transition): as part of a shake-up of its asset portfolio, the group is selling off its Chinese pipe business (11,000 employees, sales of €170m and EBIT of only €9m). Makes sense.
TSMC (Asia Satellites) has reported Q1 2021 results showing sales up 25% YoY, buoyed by strong growth in the cloud segment. The group has also announced that the chip market will remain tight over 2021-2022 but shortages in the automotive sector should be resolved by end Q3 2021.
VOLKSWAGEN & STELLANTIS (Satellites): European electric vehicle registrations once again surged in March and Q1 2021 (BEVs: +164%/+81%, with a market share of 6.7%; PHEVs: x4/+185%, with a market share of 7.4%). This trend is set to continue over the coming months thanks to incentives and infrastructure rollout.
With markets awash with liquidity, indices maintained their momentum, continuing to break records. Strong results from US banks also helped markets. This will be a busy week, with results due from Coca-Cola, IBM, Procter, Philip Morris and others. On the macro front this week: leading indicators, home sales and PMIs in the US and an ECB meeting this Thursday. We remain positive.
Falling US 10-year yields continued to hamper USD: EUR/USD 1.1980; USD/CHF 0.9197; GBP/USD 1.3840. Breaking through resistance at 1.20 would give the EUR/USD uptrend a big boost, failing which it will return to around 1.1880/1.1800. GBP is benefiting from the positive effect of mass vaccination and lockdown easing. Geopolitical tensions between Russia and Ukraine are supporting CHF (EUR/CHF 1.1020) and have pushed gold upwards ($1,778/oz). Our ranges – EUR/USD: supp. 1.1880, res. 1.2060; USD/CHF: supp. 0.9150, res. 0.9436; GBP/USD: supp. 1.3640, res. 1.40.
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