Mid-session AOF Wall Street analysis – Jerome Powell’s reappointment supports markets

(AOF) – US stock markets remain in the green as we approach mid-session. Across the Atlantic, Angela Merkel’s comments on possible new restrictive measures in the face of Covid have not had as much impact as in Europe, where the markets are struggling to find a balance. In addition, the reappointment of Jerome Powell as head of the Fed provided a welcome breath of fresh air. His second term must now be validated by Congress. The Dow Jones thus gained 0.73% to 35,862.06 points and the Nasdaq gained 0.17% to 16,084.99 points.

Vonage Holdings shares jumped 26.42% to $ 20.70 after the announcement of its takeover by Ericsson for about $ 6.2 billion in enterprise value. The Swedish telecoms equipment maker is offering $ 21 per share of the American company specializing in communication solutions for businesses via the cloud, offering a premium of just over 28% over Friday’s closing price.

Today’s economic figures

In the United States, sales of second-hand homes for the month of October 2021 amounted to 6.34 million year-on-year, against a Briefing.com consensus of 6.20 million. In September, sales of second-hand homes had reached 6.29 million.

The values ​​to follow today

Activision Blizzard

Activision Blizzard chief executive Bobby Kotick has told senior executives he will consider leaving the company if he fails to quickly resolve the video game giant’s cultural issues, according to people familiar with his operations. comments cited by the Wall Street Journal. Activision Blizzard is facing prosecution for sexual discrimination and harassment. The pressure had mounted last week on the boss of the video game publisher for 30 years.

GlobalFoundries

JPMorgan began monitoring GlobalFoundries with an Overweight recommendation and a price target of $ 80. “As applications become smarter, more connected, and focused on real-world signal processing and energy efficiency, the demand for more ubiquitous semiconductors (analog, mixed signal, power management, RF, semiconductor products) high-speed drivers) increases, ”explains the design office.

KKR

KKR has made an offer to acquire the Italian telephone operator Telecom Italia. The investment fund specializing in private equity has thus proposed 0.505 euros per share for the entire capital of the company (ie approximately 10.8 billion euros). This preliminary proposal, qualified as “friendly” and non-binding, would be subject to a minimum acceptance level of 51% for the different categories of shares, and would have as its final objective a withdrawal of Telecom Italia from listing.

Tesla

The Model S Plaid, a sedan with a range of over 800 kilometers and reaching up to 320 kilometers per hour, could be released in China around March. This is what Elon Musk, CEO of Tesla, wrote on his Twitter account. In pre-opening of Wall Street on Monday, the title of the manufacturer of electric vehicles rose 2.5%.

Vonage

Ericsson has entered into a deal to acquire Vonage Holdings for $ 21 per share, for a total purchase price of approximately $ 6.2 billion in enterprise value. The telecoms equipment manufacturer offers a premium slightly above 28% compared to Friday’s closing price. The merger agreement was unanimously approved by the board of directors of the American company specializing in communication solutions for businesses via the cloud. The acquisition will be funded from Ericsson’s existing liquidity.