Casino shares fell as much as 40% on Wednesday after the cash-strapped French retailer said the injection of new capital that would result from two rival offers to rescue the group meant that existing shareholders would be wiped out, Reuters reported. Czech billionaire Daniel Kretinsky is leading a 1.35 billion-euro investment plan to rescue Casino, details of the two offers released after the market close on Tuesday showed, dwarfing a rival proposal backed by telecoms maverick Xavier Niel.
France
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The French economy is on course to avoid a recession this year while inflation pressures ease though growth and will only gradually pick up in the coming two years, the central bank forecast on Wednesday, Reuters reported. In its quarterly outlook, the Bank of France said the euro zone's second-biggest economy would grow 0.1% in the current quarter from the previous three months and 0.2% in both the third and fourth quarters.
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A European derivatives committee said on Monday that a bankruptcy credit event has not occurred in relation to France's debt-laden Casino (CASP.PA), dashing investor hopes for a payout on credit insurance linked to the retailer, Reuters reported. The EMEA Credit Derivatives Determination Committee (CDDC) met on Friday to discuss the question raised by an investor, it said on its website.
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An investor has raised a question with a CDS panel on whether a bankruptcy credit event has occurred in respect to Casino Guichard Perrachon, potentially starting the process for a payout on the company's credit default swaps, Reuters reported. The French retailer announced on Friday it entered court-backed talks with creditors.
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The French economy is set to grow around 0.2% in the first quarter of 2023, up from around 0.1% forecast last month, the central bank said on Tuesday, as activity in three main sectors picked up steam, Reuters reported. The Bank of France said companies polled in its monthly business sentiment survey reported activity in March was stronger than in February in the industrial sector, as well as in services and in construction. The improving sentiment comes despite widespread strikes against pension reform that have weighed on transport and energy.
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European planemaker Airbus is negotiating a new round of plane orders with China, coinciding with a visit by French President Emmanuel Macron to the economic superpower later this week, government and industry sources said, Reuters reported. The potential deal for dozens of jets comes amid worsening relations between Washington and Beijing, which have seen China's usually balanced airplane imports tilt towards Airbus in recent years.
French authorities on Tuesday searched the Paris offices of five banks, including Societe Generale, BNP Paribas and HSBC, on suspicion of fiscal fraud, part of a broad European probe into the dodging of dividend tax payments, Reuters reported. Societe Generale confirmed the searches, declining further comment. The other banks concerned did not immediately reply to requests for comment. The French prosecutors' actions are the latest to hit global banks over the dividend tax fraud scheme as similar investigations have been conducted in Germany and other European countries.
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French unions are holding a 10th day of nationwide protests Tuesday to try to force President Emmanuel Macron to hit the brakes on his unpopular pension reform and open fresh talks, Bloomberg News reported. As concerns grow over mounting violence, labor organizations have blamed the government for creating an explosive situation. Marches last Thursday ended in chaos, with hardcore fringes clashing with riot police. Further scuffles have taken place in the days since.
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The French economy is set to grow around 0.1% in the first quarter of 2023 after expanding 0.1% in the fourth quarter 2022, the central bank said on Wednesday, Reuters reported. The Bank of France said companies polled in its monthly business sentiment survey reported activity in February was stronger than in January in the industrial sector and in services and was broadly stable in construction. For March, companies expected a further improvement in services and the industrial sector but a slight decline in construction, the central bank said.
French energy infrastructure from natural gas import terminals to oil refineries and power plants were disrupted on Tuesday by protests against government plans to increase the retirement age, Bloomberg News reported. The labor protests are putting additional pressure on French energy supplies, which have been hit by prolonged outages at some nuclear reactors and reduced gas flows from Russia. A cold snap in the UK — which trades electricity with France — is temporarily adding strain to the region’s power grid.
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