Trader Talk: An Analysis of the Markets this Morning

Good morning,

Asian stocks climbed the most in four weeks as European equity-index futures advanced and metals gained after Federal Reserve chairman nominee Janet Yellen

signaled stimulus will be maintained until the U.S. economy improves. The yen approached a two-month low.

WHAT TO WATCH:

• BNP Paribas to Buy 25% Stake in Fortis Unit for EU3.25b

• Deutsche Euroshop Raises Forecast After ‘Positive’ 9M

• Lenzing Cuts 2013 Forecast, Cites ‘Difficult Market Situation’

• Air Berlin ‘Only Close’ to Meeting Mkt Consensus in 2013

• CaixaBank, Bankia Said to Consider Antolin Stake Sale to Owners

• Maersk CEO Says Balancing Supply of Ships to Demand Is Years Off

• Apple ‘Confident’ Italy Tax Review Will Show It’s in Compliance

• Yellen Says U.S. Economy Must Improve Before Fed Tapers QE

EARNINGS All times CET, estimates where available:

• EADS (EAD FP) 7am, 3Q Ebit est. EU664m. Preview

• RWE (RWE GR) 7am, 9-mo. recurrent net est. EU2.01b. Preview

• Vivendi (VIV FP) after mkt, 3Q adj. EPS est. EU0.30

• Prudential (PRU LN) 8am, 3Q sales, trading

• Ahold (AH NA) 6:45am, 3Q Ebit est. EU311.3m

• Merck KGaA (MRK GR) 7am, 3Q adj. EPS est. EU2.20

• Banca Monte dei Paschi (BMPS IM) aftermkt, 3Q GAAP net loss est. EU162m

• Zurich Insurance (ZURN VX) 6:45am, 3Q adj. net est. $999m

• K+S (SDF GR) 7am, 3Q adj. EPS est. EU0.31

• Telekom Austria (TKA AV) 7am, 3Q adj. EPS est. EU0.17

• Sodexo (SW FP) 7am, FY EPS est. EU3.29

• KBC Groep (KBC BB) TBD, 3Q adj. EPS EU0.81 92 ests.)

• Burberry (BRBY LN) 8am, 1H pretax est. GBP174.2m

• Serco Group (SRP LN) 8am, 3Q sales, IMS

• Centrica (CNA LN) 8am, 3Q sales, IMS

• Taylor Wimpey (TW/ LN) 8am, 3Q sales, IMS

• Baloise (BALN VX) 7am, 3Q sales

• Amlin (AML LN) 8am, 3Q sales, IMS

• Ophir Energy (OPHR LN) 8am, 3Q sales, IMS

• Carphone Warehouse (CPW LN) 8am, 3Q sales

• WS Atkins (ATK LN) 8am, 3Q

• United Internet (UTDI GR) TBD, 8am, 3Q adj. EPS est. EU0.27

• Electrocomponents (ECM LN) 8am, 1H adj. EPS GBP0.07 (2 ests.)

• Great Portland Estates (GPOR LN) 8am, 1H adj. EPS est. GBP0.05

• 3i Group (III LN) 8am, 1H

• Rexam (REX LN) 8am, 3Q sales, IMS

• SBM Offshore (SBMO NA) 8:30am, 3Q sales

• Exor (EXO IM) TBD, 3Q

• Banque Cantonale Vaudoise (BCVN SW) TBD, 3Q

• Davide Campari-Milano (CPR IM) 11am, 3Q Ebit est. EU76.1m

• ACS (ACS SM) after mkt, 3Q net GAAP est. EU168.5m

Good day and happy trading!

Kristian Camenzuli