Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open flat this morning. Home prices in China’s four major cities jumped the most since January 2011, heightening concerns a bubble is forming as the government refrains from introducing more property curbs that would hinder economic growth.

Property stocks fell in Shanghai on speculation Premier Li Keqiang will be forced to impose stricter policies to rein in prices and limit risks to the economy. Li has held off tightened restrictions on property this year as his government strives to meet a 7.5 percent annual economic growth target.

WHAT TO WATCH:

• Telecom Italia Is Said to Withdraw Telephone Grid Spinoff Plan

• Telekom Austria Leads Bidders in $2.75b Spectrum Auction

• U.K. Prosecutor Investigating 22 More People in Libor Probe

• Deutsche Bank Said to Interview Some 50 Employees in Rates Probe

• SSE Investor Selling $349m Stake in Company, Terms Show

• LEG Immobilien Share Sale Said to Seek up to EU294m

• Bill Gates Buys 6% Stake in Spain’s FCC for EU113.5m

• Carney Said to Hire McKinsey in Bank of England Strategy Rethink

• Europe Breakup Forces Mount as Stalwarts Regret Losing Relevance

• Luxury Rents Fall in Hong Kong to Singapore on Expat Budget Cuts

• Vodafone CEO Colao speaks at Bocconi University, Milan, 11am, see LIVE <GO>

EARNINGS All times CET, estimates where available:

• Novartis (NOVN VX) 7am, 3Q core EPS $1.27, sales $14.3b

• Reckitt Benckiser (RB/ LN) 8am, 3Q sales GBP2.51b

• Swedbank (SWEDA SS) 7am, 3Q adj. EPS SEK3.50, conf. call on LIVE <GO>

• Tele2 (TEL2B SS) 7am, 3Q adj. EPS SEK1.19

• Gjensidige Forsikring (GJF NO) 7am, 3Q GAAP net NOK1.11b * Boliden (BOL SS) 7am, 3Q GAAP net SEK365.8m

• KPN (KPN NA) 7:30am, 3Q adj. net EU111m, conf. call on LIVE <GO>

• ARM (ARM LN) 8am, 3Q adj. EPS GBP0.048

• Whitbread (WTB LN) 8am, 1H adj. EPS GBP0.90

• GKN (GKN LN) 8am, 3Q sales GBP1.83b

• Aalberts Industries (AALB NA) pre-mkt, 3Q sales

• Eurotunnel (GET FP) pre-mkt, 3Q sales EU299.8m

• UBM (UBM LN) 8am, 3Q sales, IMS

• GAM (GAM SW) TBD, 3Q sales, IMS

• Spirit Pub (SPRT LN) 8am, FY adj. EPS GBP0.064

• Enagas (ENG SM) 8am, 3Q adj. net EU100.9m

• Orion (ORNBV FH) 11am, 7am, 3Q adj. EPS EU0.35

• Kone (KNEBV FH) 11:30am, 3Q adj. EPS EU0.77

• Stora Enso (STERV FH) noon, 3Q adj. EPS EU0.12

• Modern Times (MTGB SS) 1pm, 3Q adj. EPS SEK3.19

• Kemira (KRA1V FH) 1:30pm, 3Q adj. EPS EU0.22

• STMicro (STM IM) post-mkt, 3Q adj. EPS EU0.03

• SEB (SK FP) post-mkt, 3Q sales

• Faurecia (EO FP) post-mkt, 3Q sales EU4.2b

Good day and happy trading!

Kristian Camenzuli