(News Bulletin 247) – Morose atmosphere on the European stock markets, where Paris, Frankfurt and London are in moderate decline and yield between 0.1% and 0.3% against a backdrop of growing anxiety about the negotiations on the ceiling of US debt.

“The latest news was not particularly promising, with House Speaker McCarthy telling reporters that there were a number of areas where negotiators were still far apart,” Deutsche Bank notes.

The German bank also points out that after the close of the American markets, the credit rating agency Fitch placed the rating of the United States on negative watch, even if its basic scenario remains that an agreement would be concluded.

“We remain constructive on an agreement reached in time to avoid a default on the American debt, even if we expect that the soap opera will continue in the very short term”, also judged Libby Cantrill, head of public policy at PIMCO.

On the statistics front, Germany’s GDP fell by 0.3% in the first quarter of 2023 compared to the last quarter of 2022, according to new volume and CVS-CJO data from Destatis, while a stability had been originally announced.

In addition, the business climate in France darkened in May, for the third consecutive month, given the INSEE indicator which lost two points and returned to 100, its long-term average. This is its lowest level since April 2021.

In corporate news, Generali posted “strong and profitable” growth with adjusted net profit of 1,229 million euros (+49.7%) in the 1st quarter. Operating profit increased to 1,820 million euros (+22.1%), mainly thanks to the strong contribution of the Property & Casualty segment, while the Life segment resisted.

Flag carrier Kenya Airways (KQ) has become the first African airline to use SAF (Sustainable Aviation Fuel) supplied by Eni for a long-haul flight, Eni announced today.

BAE Systems announces that the Czech Republic has successfully concluded negotiations with the Swedish government, the Swedish defense procurement organization FMV and BAE Systems Hägglunds to purchase 246 CV90 MkIV infantry fighting vehicles for a valued contract at $2.2 billion.

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