Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning.

Alcoa Profit Misses Estimates Amid Excess Aerospace Inventories

Alcoa Inc., the largest U.S. aluminum producer, reported fourth-quarter profit that missed analysts’ estimates because of a glut of rolled metal used in the aerospace industry. The net loss was $2.34 billion, or $2.19 a share, compared with net income of $242 million, or 21 cents, a year earlier, New York-based Alcoa said yesterday in a statement. Profit excluding a $1.7 billion non-cash goodwill impairment and other one-time items was 4 cents a share, trailing the 6-cent average of 16 estimates compiled by Bloomberg.

WHAT TO WATCH:

• S&P may announce rating actions on Portugal, Germany, in line with its 2014 calendar

• Covered Bond Shock Forces Denmark to Examine ‘Plan B’ for Banks

• Itau Says Bank Still in Talks With Corpbanca Over Asset Merger

• Mercedes-Benz Expects Record Sales in Japan in 2014: Ueno

• Monte Paschi Said to Schedule Board Meeting for Jan. 14

• Rolls-Royce Considering Production of a 4×4: Sky News

• Spanish Supermarket Chain DIA to Exit Beijing: Beijing News

• Labour Says Sale of Royal Mail Short Changed U.K. Taxpayers

• Portugal Sells 3.25 Billion Euros of Notes Amid Debt Rally

• Bankia Lures Foreigners With $1.4 Billion First Debt Sale

• NXP CEO Considering Acquisitions of as Much as $1.5 Billion

• Montagu Said to Hold Exclusive Talks on $823m Units

• Marchionne Says Fiat Will Rehire All Its Workers: Repubblica

• Berkeley Wins Approval to Build Homes on ‘Fortress Wapping’ Site

• Cineworld Close to Merger W/ Poland’s Cinema City: Sky

• Metro May Be Broken Up, CEO Replaced in Dispute: Platow

• Infosys Raises Sales Forecast as European IT Demand Revives

EARNINGS All times CET:

• Lufthansa (LHA GY) 1pm, Dec. traffic

• SAS (SAS SS) TBD, Dec. traffic

• JD Sports (JD/ LN) 8am, Dec. sales/trading

• Hilton Food (HFG LN) 8am, 4Q sales/trading

• XP Power (XPP LN) 8am, 4Q sales/trading

Good day and happy trading!

Kristian Camenzuli