Home > Blog > Trader talk > Trader Talk: An Analysis of the Markets this Morning

Good morning,

markets are called to open flat this morning. This is what's happening today:

  • ECB President Mario Draghi says policy makers are ready to cut interest rates again if needed after reducing them to a record low last week
  • Bank of England will probably leave its stimulus program on hold this week amid signs Britain’s economic recovery has found a firmer footing
  • Ence Energia & Celulosa is mulling acquisitions abroad after profit and cash climbed and regulatory changes in Spain deter the paper-pulp producer from investing at home, a person familiar with the matter said
  • Slovenia plans tax increases as debt sale eases concern over aid
  • Telefonica is reviving a plan to sell its Madrid headquarters five years after failing to find a buyer for the buildings, according to five people familiar with the matter
  • ECB may review lenders’ balance sheets in the next yr as it seeks ways to free up credit and spur euro-area economic growth, Hospodarske Noviny reported, citing Executive Board member Benoit Coeure
  • Hochtief sells airports unit to PSP Investments for $2b

Companies in Europe reporting results today:

  • Commerzbank (CBK GR) 7am, 1Q adj. EPS EU0.039
  • Adecco (ADEN VX) 7am, 1Q adj. net EU80.4m
  • Carlsberg (CARLB DC) 7am, 1Q adj. net DKK73m
  • Alstom (ALO FP) 7am, FY GAAP net EU923.7m
  • Gjensidige Forsikring (GJF NO) 7am, 1Q adj. EPS NOK1.77
  • Credit Agricole (ACA FP) 7am, 1Q adj. net EU605.2m
  • Lundin Petroleum (LUPE SS) 7am, 1Q adj. EPS $0.16
  • Hannover Re (HNR1 GR) 7:30am, 1Q adj. net EU213.3m
  • Stada Arzneimittel (SAZ GR) 7:30am, 1Q adj. EPS EU0.67
  • Distribuidora (DIA SM) 7:30am, 1Q adj. net EU21.5m
  • Munich Re (MUV2 GR) 7:45am, 1Q adj. net EU930.8m
  • Skanska (SKAB SS) 8am, 1Q adj. EPS SEK1.03
  • Meda (MEDAA SS) 8am, 1Q GAAP EPS EU0.85
  • Endesa (ELE SM) 9am, 1Q adj. net EU497.3m
  • Gas Natural SDG (GAS SM) 9am, 1Q adj. net EU380.2m
  • Societe Generale (GLE FP) 7am, 1Q adj. net EU648.7m
  • Securitas (SECUB SS) 1pm, 1Q adj. EPS EU1.14
  • Telekom Austria (TKA AV) 6pm, 1Q adj. net EU29.2m
  • Banco Espirito Santo (BES PL) post-mkt, 1Q adj. net EU14.6m
  • Axel Springer (SPR GR) TBD, 1Q adj. net EU51.6m (2 est.)
  • Pirelli & C. (PC IM) TDC, 1Q Ebit EU176.5m
  • ProSiebenSat.1 Media (PSM GR) TBD, 1Q adj. net EU49.6m
  • Enel (ENEL IM) TBD, 1Q adj. net EU771.1m
  • Symrise (SY1 GR) TBD, 1Q adj. net EU45.9m
  • Dufry (DUFN SW) 7am, 1Q GAAP EPS CHF0.32
  • HSBC Holdings (HSBA LN) 10:15am, 1Q adj. net $4.92b
  • National Express (NEX LN) 8am, IMS * Prudential (PRU LN) 8am, 1Q sales GBP926.8m
  • OC Oerlikon (OERL SW) TBD, 1Q sales CHF968.3m
  • Eutelsat (ETL FP) post-mkt, 3Q sales EU322.8m
  • Teleperformance (RCF FP) post-mkt, 1Q sales
  • William Demant (WDH DC) TBD, 1Q sales
  • EasyJet (EZJ LN) 8am, April traffic
  • Telecity (TCY LN) 8am 1Q sales

Societe Generale

Societe Generale SA, France’s second-largest bank, said first-quarter profit dropped 50 percent, hurt by accounting charges related to its own debt. Net income fell to 364 million euros ($476 million) from 732 million euros a year earlier, the Paris-based bank said today in an e-mailed statement. That beat the 317 million-euro average estimate of 10 analysts surveyed by Bloomberg. The company booked costs of 1.05 billion euros related to the revaluation of its own debt in the period.

Societe Generale, trailing larger French rival BNP Paribas SA in boosting capital, is turning to cost cuts at home after trimming about 1,600 corporate and investment-banking jobs last year and selling assets to comply with international capital rules. The company, led by Chief Executive Officer Frederic Oudea, said today it plans 900 million euros in additional cost savings by 2015.

Credit Agricole

Credit Agricole SA, France’s third-largest bank, said first-quarter profit climbed 51 percent, helped by the disposal of its unprofitable Greek division. Net income rose to 469 million euros ($613 million) from 311 million euros a year earlier, the bank, based in Montrouge near Paris, said in an e-mailed statement today. That topped the 374.4 million-euro average estimate of eight analysts surveyed by Bloomberg.

Credit Agricole, led by Chief Executive Officer Jean-Paul Chifflet, completed the sale of its Greek consumer-banking unit Emporiki in February and shut its riskiest investment-banking businesses. The company now is struggling to contain rising bad-loan provisions at its unit in Italy, the lender’s biggest market outside of France.

For more information on Societe Generale and Credit Agricole, contact our offices on 25688688.

Good day and happy trading!

Kristian Camenzuli