Good morning,

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

  • Asian stocks rose to a 10-week high and oil gained for a third day after faster-than-forecast U.S. employment growth bolstered optimism in the world’s largest economy;
  • UBS to vacate most of Park Ave. tower as it subleases space;
  • Portugal govt plans EU4.8b in measures until 2015, Coelho says;
  • French FM Pierre Moscovici declared the era of austerity over after his German counterpart offered flexibility on deficit cutting, an interpretation that portends renewed bickering between Europe’s two biggest economies;

European Companies reporting results today:

  • Linde (LIN GR) 7:30, 1Q adj. GAAP EU307.1m
  • Natixis (KN FP) post-mkt, 1Q adj. net EU238.2m
  • Banco Comercial Portugues (BCP PL) post-mkt, 1Q adj. net loss EU136.8m
  • Enel Green Power (EGPW IM) afternoon, 1Q adj. net EU122m
  • AXA (CS FP) post-mkt, 1Q sales
  • JCDecaux (DEC FP) post-mkt, 1Q sales
  • Eurazeo (RF FP) TBD, 1Q sales

BNP reported results last Friday. Barclays research are still overweight on the stock ,'BNP’s capital is strong, both in terms of organic generation and its position versus other European wholesale peers. The case for a meaningful increase in dividends for this year and next remains intact, dependent on what they plan to do next in CIB and their new online bank. Investors seem wary of growth investments and more interested in directly accretive capital returns and/ or buy-in of government stakes in the parent and subsidiaries. We reiterate our Overweight recommendation.'

Adidas also reported results last Friday. Barclays research are overweight on the stock. 'We have been cautious on adidas’ long term margin guidance as the 11% target always seemed stretched. However, the group has shown it can achieve more or less all the 2013 100bp EBIT margin improvement target from gross margins alone with Q1 up 240bp. While Q1 organic sales growth was flat, this was expected against a tough comp including the Olympic and Euro 2012 sell in. Overall the group achieved a 110bp improvement in EBIT margin despite absorbing a 60bp increase in incremental marketing costs in a period where revenue fell 1.9% – an impressive performance. Revenue growth will be H2 weighted and with a 100bp margin increase, we expect c19% EPS growth in 2013. We raise the PT to €87 based on 17x EPS –due to our increasing confidence the group can achieve its long term targets.'

For more information on BNP and Adidas or other stocks and bonds we follow, contact our offices on 25688688.

Good day and happy trading!

Kristian Camenzuli