Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open flat this morning.

Mark's and Spencer

Marks & Spencer Group Plc reported a tenth straight quarter of falling clothing sales, indicating that heavy discounting before Christmas had little effect in luring customers back to Britain’s largest apparel retailer. Non-food sales at stores open at least a year fell 2.1 percent in the 13 weeks ended Dec. 28, the London-based company said in a statement today. That’s worse than the median estimate for unchanged sales in a Bloomberg News survey of 19 analysts. Food sales rose 1.6 percent on that basis, less than the 2 percent anticipated by the analysts surveyed.

WHAT TO WATCH:

• Swedish Prime Minister Drops Stimulus Predicting Stronger Growth

• Draghi Faces Mission Conflict Balancing Growth With Bank Review

• France Should Impose Tax on Smartphones, Film Report Says: FT

• BMW’s Rolls-Royce Division Says 2013 Sales Exceeded 3,600 Cars

• Rolls-Royce Said to Explore Offer for Waertsilae’s Marine Unit

• Novartis Said to Be in Talks With Merck on $5b Unit Swap

• RBS Open to Takeover Bids for Citizens Before IPO: Van Saun

• RBS Considering Cutting Thousands More Jobs: Sky

• Bristol, AstraZeneca Win FDA Approval for New Diabetes Drug

• Portugal Said to Name Banks for First Bond Sale in Eight Months

• Raiffeisen to Redeem State Aid With $3b Sale of Shares

• RSA Gains as Co. Says ‘Confident’ Irish Accounting Woes Isolated

• RSA Shares Rally to One-Month High Amid Takeover Speculation

• Arkema Cuts FY 2013 Ebitda Forecast to Around EU900m vs EU920m

• Danone Says Its Brand Was Hurt by Fonterra Botulism Scare

• Monte Paschi Sells 5.7% Stake in Sorin for EU2.05/Shr

• Havas’s Yannick Bollore Replaces David Jones as Chief Executive

• Mechel Leads Decline Amid Commodities Selloff: Russia Overnight

EARNINGS All times CET:

• Marks & Spencer (MKS LN) 8am, 3Q sales. Preview

• Tesco (TSCO LN) 8am, Dec. trading update

• Hays (HAS LN) 8am, 2Q sales/trading

• Pace (PIC LN) 8am, 4Q sales/trading

• Rathbone Brothers (RAT LN) 8am, 4Q sales/trading

• Restaurant Group (RTN LN) 8am, trading update

• SIG (SHI LN) 8am, 4Q sales/trading

• Signet (SIG LN) 8am, Dec. sales/trading

• Ted Baker (TED LN) 4Q sales/trading

Good day and happy trading!

Kristian Camenzuli