Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open higher this morning. This is what's happening today:

• KPN Foundation Buys Class B Shrs, Says America Movil Should Talk

• Carney Says BOE Could Add Stimulus If Necessary, Daily Mail Says

• U.K. Consumer Confidence Rises as Recovery Spurs Spending Plans

• Asian Stocks Swing as Energy Shares Fall on Syria

• L’Oreal Maintains Full-Year Targets as First-Half Profit Rises

• Iraq, BP Close to Deal on Kirkuk Oil Field

• ACS 1H Net EU356.7 Mln vs Estimate EU348.5 Mln

• Lagardere 1H Net EU1.48b vs EU36m Y/y; Outlook Maintained

• Ferragamo 1H Net Beats Ests.; Confirms Guidance

• Opap Posts 77% Drop in Second-Quarter Net to 28.4 Million Euros

• Cameron Defeat Complicates Obama Decision on Syria Action

• Zurich Insurance holds conf. call with CEO, acting chairman, following death of CFO, resignation of chairman, 9am

EARNINGS All times CET, estimates where available:

• Hermes (RMS FP) 7am, 1H adj. net EU380m

• Eurocommercial Properties (ECMPA NA) 8am, FY adj. net EU80.5m

• Bwin.Party Digital (BPTY LN) 8am, 1H adj. EPS EU0.052 (2 est.)

• Polyus Gold (PGIL LN) 8am, 1H adj. net $235.2m

• LEG Immobilien (LEG GR) 8am, 2Q Ebitda EU57.4m

• Strabag (STR AV) 7:30am, 2Q

• Aker (AKER NO) 8am, 2Q

• Computacenter (CCC LN) 8am, 1H adj. EPS GBP0.11 (1 est.)

• Restaurant Group (RTN LN) 8am, 1H adj. EPS GBP0.11 (2 est.)

• Volvo (VOLVB SS) 8:30am, July deliveries

• Iliad (ILD FP) 5:30pm, 1H rev. EU1.83b

• Havas (HAV FP) post-mkt, 1H adj. EPS EU0.15

Concern that conflict with Syria will disrupt Middle East oil supplies eased as U.K. Prime Minister David Cameron failed to gain parliamentary backing for military action. Data today may show India’s economy slowed in the three months ended June after the central bank said this week it will sell dollars to oil importers to support the rupee. U.S. consumer spending probably increased for a third month in July, economists said before Commerce Department figures due today.

Stock to watch: Socgen

Societe Generale SA, France’s

second-largest bank by market value, would be able to meet tougher leverage rules by reducing its cash deposits at central banks, Chief Executive Officer Frederic Oudea said.

“Today we have lots of cash with the central banks, we will anyway cut that,” Oudea said in an interview with Bloomberg Television outside Paris, indicating the firm may trim those deposits by about 30 billion euros ($40 billion). Asked whether the bank could improve its leverage ratio to 4 percent should regulators require it, he said: “Yes, of course.”

Good day and happy trading!

Kristian Camenzuli