Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning. U.S. and European stock-index futures gained with the dollar and industrial metals as U.S. lawmakers indicated they’re open to a short-term increase in the debt ceiling. Crude oil climbed after Libya’s prime minister was taken by a revolutionary group.

House Republican and Senate Democratic leaders in the U.S. are open to an increase in the $16.7 trillion debt ceiling, according to congressional aides. Rates on Treasury bills due Oct. 17, the day the U.S. reaches its borrowing capacity, held at 0.49 percent after surging the past five days. In Europe, economists expect the Bank of England to leave interest rates unchanged today, while reports may show French and Italian industrial production climbed in August.

WHAT TO WATCH:

• Kabel Deutschland Profit Cut by EU205m in Vodafone Sale

• Telecom Italia Is Said to Seek EU9b for Brazil Stake

• Italy to Cut EU1.1b of Spending to Meet Deficit Target

• Japan Stocks to U.S. Index Futures Climb as Yen Declines

• Portugal May Follow U.K. in Selling Postal Operator Through IPO

• ECB’s Next Policy Move Seen Easing Liquidity Not Rate Cut

• Cable Said to Seek More Royal Mail Shares For Small Investors

• Fondiaria, Units Sell Mediobanca Shrs for EU135.2m

• KKR, Blackstone Said to Consider 20% Stake in Versace, WSJ Says

• Citigroup Hires Attolico, Di Stefano for Italy Investment Bank

• Barclays Appoints John Miller as Head of Banking for Americas

• National Bank in Talks With Invel on Stake in Real Estate Unit

EARNINGS All times CET, estimates where available:

• Tryg (TRYG DC) 7:30, 3Q adj. EPS est. NK11.57

• Suedzucker (SZU GR) 7am, 2Q adj. EPS est. EU0.56 (2 ests.)

• Givaudan (GIVN VX) 8am, 3Q sales

• Hays (HAS LN) 8am, 1Q IMS

• BAE Systems (BA/ LN) 8am, IMS

• Lufthansa (LHA GR) TBD, Sept. traffic

• Ashmore (ASHM LN) 8am, 1Q IMS

• WHSmith (SMWH LN) 8am, FY adj. EPS est. GBP0.71

good day and happy trading!

Kristian Camenzuli