Trader Talk: An Analysis of the Markets this Morning

Good morning,

European stock-index futures were little changed, with the Stoxx Europe 600 Index heading for a fourth straight week of gains, as investors awaited data on U.S. manufacturing growth. U.S. index futures were also little changed, while Asian shares fell.

Vodafone Group Plc may move after people familiar with the matter said AT&T Inc. is exploring a takeover of Europe’s biggest mobile carrier next year. Royal Bank of Scotland Group Plc may be active after posting a narrower quarterly loss and saying it will set up an internal “bad bank.” ASM International NV may move after posting third-quarter earnings that missed analysts’ projections. BHP Billiton Ltd. may be active after selling its U.S. coal mine.

WHAT TO WATCH:

• RBS Suspends 2 Foreign Exchange Traders, FT Reports

• RBS Starts Talks on Reinstating Dividend Payments, Sky Reports

• ASM Intl 3Q Rev. Beats Est.; Adj. Net Misses Est.

• Xstrata Paid Glencore-Deal Bonuses 2 Weeks After Investor Rebuff

• AT&T Said to Explore Vodafone Takeover as Soon as Next Year

• Spain’s Richest Woman Emerges With $5.2b Zara Inheritance

• Liffe Executive Departures Said Planned Following ICE’s Takeover

• BHP Billiton to Sell U.S. Coal Mine to Navajo Nation: WSJ

• U.K. Business Poll Finds EU Membership Costs Outweigh Benefits

• Caixa Geral 9-Mo. Net Loss EU277.8m vs Loss EU130m Y/y

• Greece Approves Bidders for Sale of Rail-Related Cos.

• France Closed for Public Holiday; Market Open

EARNINGS All times CET, estimates where available:

• RBS (RBS LN) 8am, 3Q adj. EPS GBP0.05, conf. call on LIVE <GO>

• TDC (TDC DC) 8am, 3Q GAAP net DKK747.8m

• DS Smith (SMDS LN) 8am, 2Q sales

• Berendsen (BRSN LN) 8am, 3Q sales

• Direct Line Insurance (DLG LN) 8am, 3Q sales

• Meggitt (MGGT LN) 8am, 3Q sales

• Outokumpu (OUT1V FH) 12pm, adj. EPS EU0.066

Good day and happy trading!

Kristian Camenzuli