Trader Talk: An Analysis of the Markets this Morning

Good morning,

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

WHAT TO WATCH:

• Nestle Sales Slowdown Seen Leading to Slimmer Brand Portfolio

• EON to Sell Helmstedt Lignite Unit to EPH, Die Welt Reports

• Asia Stock Index Swings Between Gains and Losses

• ThyssenKrupp Concerned EU Ruling to Hurt Steel Unit: Focus

• Atlas Copco Said in Talks to Buy Vacuum-Pump Maker Edwards

• Mitsubishi Buys Solar Stakes in France From Energies Nouvelles

• Maersk Says Emerging Market Warnings Misplaced

• Kawasaki, Rolls-Royce to Develop Aircraft Engine, Nikkei Says

• Shire Hires Lazard to Repel U.S. Takeover Bid, Times Reports

• Lloyds to Sell Insurer for About $530 Million, Telegraph Says

• Kentz Said to Weigh Sale as Buyers Eye Irish Engineering Firm

• U.K. GDP Forecasts Raised by CBI as Recovery Builds Momentum

• Merkel Rebuffs Opposition Saying No One Wants Grand Coalition

• W&G Investments Plans Bid for Royal Bank of Scotland Branches

• Germany’s Roesler Wants to Revive Nemax to Help Startups, Handelsblatt Says

• Blackstone Said in Talks to Buy Stake in Goldman’s U.K. Insurer

• Commerzbank to Merge Fixed Income, Currencies Under Giesbert

• Euro Seen Bolstered by Banks Repaying ECB’s Crisis-Era Loans

• Asbeck Says Solarworld May Be Profitable by 2014/15, WSJ Reports

• London ‘Millionaire Club’ Areas See Summer Lull Hit Home Prices

EARNINGS:

• Amlin (AML LN) 8am CET, 1H adj. net GBP121m

• Bovis Homes (BVS LN) 8am, 1H adj. EPS GBP0.099 (1 est.)

• Clarkson (CKN LN) 8am, 1H China

China

Asian shares fell, with losses in emerging markets outweighing gains in Japan, as economies and currencies showed signs of weakening from Indonesia to India. Commodities rose, led by grains and silver, while Treasuries fell, sending 10-year yields to a two-year high.

US

Investors and analysts will be looking for clues in the Fed’s minutes for when it will trim its $85 billion in monthly asset purchases. Officials will probably begin to reduce their quantitative easing program of bond buying next month, according to 65 percent of economists surveyed by Bloomberg from Aug. 9-13.

Stock to watch: Samsung

Samsung Electronics Co. and Sony Corp. are said to be unveiling new devices next month as two of Asia’s biggest technology companies try to showcase their products before Apple Inc. releases new iPhones and iPads.

Samsung’s Galaxy Gear, a wristwatch-like device with features of a smartphone, and Note 3 will be introduced Sept. 4, according to people familiar with the matter. Sony’s latest Xperia handset, featuring imaging sensors used in its TVs and cameras, will be unveiled the same day, two other people said.

Samsung and Sony are introducing their devices for the holiday shopping season as they try to steal a march on Apple, which has promised “several more game changers” in the product pipeline. Apple, which hasn’t released a new handset this year, plans to introduce new versions of its iPhone and iPad at a Sept. 10 event, according to a person familiar with the matter.

Good day and happy tradin!

Kristian Camenzuli