Good morning,

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

  • Cyprus’s banks will open their doors to customers today for the first time in almost two weeks, with new rules curbing access to cash;
  • China’s stocks fell the most in three weeks, led by financial companies, as new restrictions on wealth-management products spurred concern that growth in bank earnings and the economy will slow;
  • German unemployment declines by 2,000, keeping rate unchanged, according to economists;
  • Italy’s Bersani reports to President Napolitano on results of govt talks;
  • Italian business confidence declines, a survey shows;
  • Companies reporting results today include Blackberry.

Cyprus’s banks will open their doors to customers today for the first time in almost two weeks, with new rules curbing access to cash. They’ve been closed since March 16, when the European Union presented a plan to force losses on depositors in exchange for a 10 billion euro bailout, and will shut again tomorrow when most of Europe and the U.S. have holidays. The euro traded at $1.2783 from $1.2780 yesterday, when it touched $1.2751, the weakest level since Nov. 21. Ten-year bond yields in Italy jumped yesterday by the most in a month, rising brought Prime Minister Shinzo Abe to power on a platform of increased stimulus and central bank easing.

The yen strengthened 0.5 percent today versus the dollar and the euro as Kuroda signaled to lawmakers that the Bank of Japan will step up asset purchases to stamp out deflation, damping expectations for more novel measures. It has weakened about 8 percent versus the greenback since the start of 2013.

Moody’s Investors Service affirmed junk debt ratings for Ireland and Portugal today and said the outlook for both was negative given the euro area’s “continued vulnerability to shocks.” Bonds slumped yesterday in Greece, Portugal and Spain amid speculation future European bailouts could include the kind of bank deposit levies imposed on Cyprus, while Italian notes retreated as political parties remained deadlocked ahead of a deadline today for forming a government.

Stock to watch: Blackberry (Price $14.57, Price Target $8)

RIM's product line has looked increasingly dated over the past year as newer smartphones have come to market. Moreover, it is difficult to see their prospects brightening any time soon. Their new platform, BB10, will not be available until CY13. Even then, we think they will find it difficult to compete; the OS will require a multi-core processor and will most likely have to compete against a much cheaper line of smartphones. Adding to this, is managment's failure to acknowledge the fundamental weaknesses in their products. Given the dated feel of their current product line and management's failure to acknowledge the challenges, we have a Hold rating on the company.

For further information on Blackberry or other stocks and bonds we follow, contact our offices on 25688688.

Good day and happy trading!

Kristian Camenzuli