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:

• China July Trade Growth Beats Estimates

• BP Loses Bid to Avoid Paying Gulf Spill Center $130m

• Asian Stocks Rebound as Aussie Declines With Yen

• Monte Paschi Quarterly Loss of $372.2m More Than Estimate

• Pearson Said to Seek Up to $500m for Mergermarket Unit

• Rio Tinto Alcan to Curtail 100,000 Tonnes of Smelter in Quebec

• Solarworld Investors Approve Restructuring to Save Panel Maker

• SBM Offshore Raises FY 2013 Rev. Outlook to $4.3b From $4b

• London Metal Exchange Said to Consider Three People as New CEO

• Catalunya Banc Sells Property Arm to Kennedy, Varde

• Corio 1H Net Rental Income EU196.8m vs EU204.4m Y/y

• Norway’s Stoltenberg Warns on FX as Solberg Targets Oil Policy

EARNINGS: All times CET, estimates where available

• Commerzbank (CBK GY) 7:00am, 2Q adj. EPS est: EU0.06

• Delhaize (DELB BB) 7:00am, 2Q adj. EPS est: EU0.99

• KBC Group (KBC BB) 7:00am, 1H no ests.

• Adecco (ADEN VX) 7:00am, 1H adj. EPS est: EU0.93 (1 est.)

• Rhoen Klinikum (RHK GY) 7:00am, 2Q GAAP EPS est: EU0.189

• Deutsche Telecom (DTE GY) 7:00am, 2Q GAAP EPS est: EU0.18 (1 est.)

• Stada Arzneimittel (SAZ GY) 7:00am, 2Q adj. EPS est: EU0.63

• Swiss RE (SREN VX) 7:00am, 2Q adj. EPS est: $2.07

• Nestle (NESN VX) 7:15am, 1H adj. EPS est: CHF1.647

• Aegon (AGN NA) 7:30am, 2Q adj. EPS est: EU0.10 (2 ests.)

• Henkel (HEN3 GY) 7:30am, 2Q adj. EPS est: EU1.039

• SGL Carbon (SGL GY) 7:30am, 2Q adj. loss/shr est: EU0.018 (2 ests.)

• Adidas (ADS GY) 7:30am, 2Q adj. EPS est: EU0.844

• Novo Nordisk (NOVOB DC) 7:30am, 2Q adj. EPS est: DK11.912

• Standard Life (SL/ LN) 8:00am, 1H, no ests.

• Amec (AMEC LN) 8:00am, 1H adj. EPS est: GBP0.39

• TUI (TUI1 GY) 8:00am, 3Q GAAP EPS est: -EU0.098

• Hexagon (HEXAB SS) 8:00am, 2Q adj. EPS est: EU0.29

• Henderson (HGG LN) 8:00am, 1H adj. EPS est: GBP0.076 (3 ests.)

• Sevan Drilling (SEVDR NO) 8:00am, 2Q adj. loss/shr est: $0.002

• Coca-Cola HBC (CCH LN) 8:00am, 2Q adj. EPS est: EU0.377 (1 est.)

• Aviva (AV/ LN) 8:00am, 1H adj. EPS est: GBP0.196

• Cobham (COB LN) 8:00am, 1H adj. EPS est: GBP0.098

• Ladbrokes (LAD LN) 8:00am, 1H adj. EPS est: GBP0.073

• Schroders (SDR LN) 8:00am, 1H GAAP EPS est: GBP0.632 (1 est.)

• Spirax-Sarco (SPX LN) 8:00am, 1H, no ests.

• Kerry Group (KYG ID) 8:00am, 1H adj. EPS est: EU1.073

• Mondi (MNDI LN) 8:00am, 1H adj. EPS est: EU0.46 (2 ests.)

• Rio Tinto (RIO LN) 8:15am, 1H adj. EPS est: $2.21

• Hellenic Telecommunications (HTO GA) 9:00am, 2Q

Europe

European stock-index futures rose after Chinese trade data beat estimates and companies from Nestle AG to Commerzbank AG posted results.

Japan

The Bank of Japan refrained from adding to unprecedented monetary stimulus after consumer prices rose in June and a recovery in the world’s third-biggest economy

maintained momentum.

Governor Haruhiko Kuroda’s board stuck with an April pledge to expand the monetary base by 60 trillion yen to 70 trillion yen ($723 billion) per year, a statement released in Tokyo today showed. All 26 economists in a Bloomberg News survey predicted the decision.

Stock to watch: Rio Tinto

Rio Tinto Group, the world’s second-largest mining company, said first-half profit dropped 18 percent as slowing economic growth in China sapped demand for raw materials, dragging down prices.

Underlying profit fell to $4.2 billion from $5.2 billion a year earlier, London-based Rio said today in a statement. That compares with the $4.16 billion average estimate of seven analysts surveyed by Bloomberg. Net income slumped 71 percent to $1.7 billion.

Chief Executive Officer Sam Walsh is seeking to cut $5 billion of costs, sell assets and slow spending to counter lower prices. Investors including BlackRock Inc. are pressuring new mining CEOs at Rio, BHP Billiton Ltd. and Anglo American Plc to boost returns to shareholders and defer building mines as waning demand and declining prices erode profits.

Good day and happy trading!

Kristian Camenzuli