Good morning,

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

  • Asian stocks rose, paring this week’s losses, as Chinese consumer companies gained after a government economist said growth will rebound this year;
  • Finance ministers and central bank chiefs from around the world are gathered in Washington to discuss policies to support economic growth. More than $1 trillion has been erased from the value of stocks worldwide this week.

EARNINGS All times CET, estimates where available:

• SAP (SAP GR) premkt, 1Q adj. EPS EU0.58

• Anglo American (AAL LN) 8am, 1Q sales, production

• TeliaSonera (TLSN SS) 7am, 1Q adj. EPS SEK0.99

• Elisa (ELI1V FH) 7:30am, 1Q adj. net EU44.2m

• Investment AB (KINVB SS) 8am, 1Q

• Schindler Holding (SCHP VX) 7am, 1Q adj. net EU169.6m

• Spectris (SXS LN) 8am, 1Q sales, IMS

• William Hill (WMH LN) 8am, 1Q sales, IMS

• Gecina (GEC FP) 7:15 am, 1Q sales

Microsoft, the world’s largest software company, yesterday reported no growth in Windows sales in its latest quarter, after accounting for upgrades sold in the past. IBM is struggling to boost hardware sales as more companies let employees use their own devices at work. Meanwhile Google Inc., which is expanding beyond its search-engine roots with Android software for smartphones and tablets, is keeping pace with the shift, reporting better-than-projected profits from mobile advertising.

As consumers check e-mail, browse the Web and watch television and movies on the go, PC shipments plummeted 14% in the first quarter, the worst decline since researcher IDC began tracking data in 1994. Microsoft and others aren’t moving fast enough to end their reliance on traditional computing.

Chipmaker Advanced Micro Devices Inc., which aims to generate 20% of sales outside the PC industry by the fourth quarter, forecast second-quarter sales yesterday that may surpass some analysts’ estimates as it diversifies.

Stock to watch: Google (Price $765.35, Price Target $930)

Deutsche Bank Research – Google reported core revenue and EPS 2% and 9% above consensus expectations on steady growth, and one-time benefits from new revenue recognition and lower tax rate, overall we view the results as largely in-line. Ad revenue decelerated from 19% to 16% Y/Y on additional partner site policy changes, but core O+O sites revenue accelerated modestly. US growth lagged international again in 1Q, as most of the partner clean up is showing up in the US, and the search market is more mature. Overall, we remain upbeat on Google’s prospects for 2013, and at 17x 2013 EPS, we continue to view the risk/reward as favorable and would selectively add to positions.

For more information on Microsoft, IBM and Google or other stocks and bonds we follow, contact our offices on 25688688.

Good day and happy trading!

Kristian Camenzuli