Trader Talk: An Analysis of the Markets this Morning

Good morning,

European stock-index futures dropped and Asian shares fell to their lowest level in a month before U.S. payrolls data. French bonds declined after Standard & Poor’s downgraded the nation, while oil gained.

The U.S. probably added 120,000 jobs last month, according to a survey of analysts, after data yesterday showing faster-than-estimated economic growth boosted speculation the Federal Reserve will pare stimulus in coming months. France’s rating was lowered to AA from AA+ at S&P today. China’s exports climbed 5.6 percent in October, data today showed, before top party officials gather in Beijing from tomorrow for a policy meeting.

WHAT TO WATCH:

• Telecom Italia Unveils Plans to Raise $5.4b to Cut Debt

• MSCI announced semi-annual index review; to see changes to regional indexes in Europe, click here {NSN MVX1CV6TTDTI <go>}

• Asian Stocks Decline With Emerging-Market Currencies

• Carrefour Confirms Talks to Buy Shopping Malls From Klepierre

• Finmeccanica Lowers 2013 Ebita Target, Keeps Rev. Goal

• Siemens CEO Seen Pressured to Weigh Health-Care Split

• Groupe Bruxelles Lambert 0.8% Stake Being Sold: Terms

• Volkswagen to Invest Additional $118m in Silao Engine Factory

• Total Shares Offered at EU43.88 to Market, Terms Show

• Prosegur Shares Offered at EU4.35 Apiece, Terms Show

• Areva Signs EU1.25 Billion Reactor Contract in Brazil

• Mapfre Mulls U.S. Acquisitions to Expand to More States: CEO

• Enel Profit Falls on Shrinking Power Demand in Home Markets

• JCDecaux 3Q Sales EU631.6m vs Est. EU644m (2 Est.)

• Corio Confirms Outlook for 2013, Rest of Yr to Be ‘Challenging’

• Vallourec Ebitda in Line; Currencies, Demand to Hurt Qtrs Ahead

EARNINGS All times CET, estimates where available:

• Allianz (ALV GR) 6:59am, 3Q GAAP net EU1.37b

• Richemont (CFR VX) 7am, 1H Ebit EU1.44b

• IAG (IAG LN) 8am, 3Q Ebit EU644.6m. Preview, conf. call on LIVE <GO>

• Telefonica (TEF SM) pre-mkt, 3Q Ebitda EU4.78b, conf. call on LIVE <GO>

• Rheinmetall (RHM GR) 7:30am, 3Q Ebit EU15.7m

• Rolls-Royce (RR/ LN) 8am, 3Q sales, IMS

• Tullow Oil (TLW LN) 8am, 3Q sales, IMS

• Hikma Pharma (HIK LN) 8am, 3Q sales, IMS

• Rentokil (RTO LN) 8am, 3Q sales GBP596.5m (2 est.). Preview

• Fugro (FUR NA) pre-mkt, 3Q sales

• Ratos (RATOB SS) 8am, 3Q

• Meda (MEDAA SS) 8am, 3Q GAAP EPS SEK0.60

• SES (SESG FP) TBD, 3Q adj. net EU139.7m

• Atlantia (ATL IM) TBD, 3Q adj. net EU253.5m (2 est.)

• Air France-KLM (AF FP) 8am, Oct. traffic

• Eiffage (FGR FP) post-mkt, 3Q sales EU3.79b (2 est.)

• Wendel (MF FP) TBD, 3Q sales

Good day and happy trading!

Kristian Camenzuli