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Good morning,

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

  • G-20 officials will develop new measures to boost global growth while backing the withdrawal of monetary stimulus in advanced exonomies, according to a draft communique seen by Bloomberg News.
  • Housing reports are due today in the U.S.
  • The U.K. posts January retail sales.
  • A deeper-than-estimated contraction in China’s manufacturing amid government efforts to rein in risky lending is adding to concern about slower growth in emerging markets, as S&P today cut Ukraine’s credit rating.

Stock to watch: Valeo

The day before yesterday we issued an overweight recommendation on Valeo with a price target of E100.80 before the results. Yesterday after market close, Valeo issued results that beat analysts’ expectation.

Valeo SA, France’s second-biggest auto-parts maker, said second-half earnings rose 16 percent as demand for cars increased in China and North America and the

European vehicle market improved.

Earnings before interest, taxes and other expenses increased to 411 million euros from 355 million euros a year earlier, the Paris-based company said today in a statement. Earnings beat the 375 million-euro average of three analyst estimates compiled by Bloomberg. Revenue rose 3 percent to 5.94 billion euros.

For a copy of our report on Valeo log into webtrader or contact our offices on 25688688.

European Companies Reporting Results Today:

  • • AXA (CS FP) 7am, FY
  • • Bolsas y Mercados (BME SM) pre-mkt, FY
  • • Gecina (GFC FP) 7:15, FY
  • • Informa (INF LN) 8am, FY
  • • Kering (KER FP) pre-mkt, FY

Good day and happy trading!

Kristian Camenzuli