Good morning,

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

WHAT TO WATCH:

• Credit Agricole Profit Surges After Disposal of Greek Unit

• Liberbank Sells Indra Shares for EU10.90 Each

• Pirelli Sees 2013 Ebit EU810m vs Previous Target EU810m-EU850m

• Deutsche Bank Sued by Royal Park Investments Over Securities

• Telecom Italia Debt Near Junk Status as CEO Rejects Stock Sale

• Barclays Said to Have Averted Defections of Energy M&A Advisers

• HSBC Falls After Earnings as CEO Says Emerging Markets Slow

• Meyer Burger Says 1H Impacted by Difficult Solar Industry Market

• Telenor CEO Sells 100,000 Shrs at Avg NOK 132.55/Shr

• Salzgitter Sees $530m Loss With Crisis in Steel Demand

EARNINGS: All times CET, earnings estimates where available

• Oerlikon (OERL SW) 6:45am, 1H, no ests.

• Merck (MRK GY) 7:00am, 2Q adj. EPS est: EU2.228

• Deutsche Post (DPW GY) 7:00am, 2Q adj. EPS est: EU0.306

• DSM (DSM NA) 7:15am, 2Q adj. EPS est: EU0.788

• RHI (RHI AV) 7:30am, 2Q adj. EPS est: EU1.35 (2 ests.)

• Sky Deutschland (SKYD GY) 7:30am, 2Q adj. EPS est: -EU0.009

• Lanxess (LXS GY) 7:30am, 2Q adj. EPS est: EU0.52 (3 ests.)

• Munich Re (MUV2 GY) 7:45am, 2Q adj. EPS est: EU3.094

• InterContinental Hotels (IHG LN) 8:00am, 1H adj. EPS est: GBP0.713 (3 ests.)

• Esure (ESUR LN) 8:00am, 1H, no ests.

• BBA Aviation (BBA LN) 8:00am, 1H, no ests.

• Legal & General (LGEN LN) 8:00am, 1H adj. EPS est: GBP0.074 (2 ests.)

• Meggitt (MGGT LN) 8:00am, 1H adj. EPS est: GBP0.173

• Rotork (ROR LN) 8:00am, 1H, no ests.

• Porsche (PSH3 GY) 8:00am, 1H, no ests.

• UPM-Kymmene (UPM1V FH) 8:30am, 2Q adj. EPS est: EU0.184

• Standard Chartered (STAN LN) 10:15am, 1H adj. EPS est: $1.15

• Campari (CPR IM) 11:00am, 1H, no ests.

• IAG (IAG LN) 4:00pm, July traffic

• Natixis (KN FP) 5:35pm, 2Q adj. EPS est: EU0.063 (3 ests.)

• UniCredit (UCG IM) 1H, no ests.

Australia

Australia’s central bank damped expectations of further interest rate cuts after reducing its benchmark to a record low, sending the local dollar higher.

Italy

Political pressure in Italy that followed the tax-fraud conviction of former Prime Minister Silvio Berlusconi may have little effect on the country’s bond market as investors use debt payments for new purchases.

Italy needs to raise 65 billion euros between August and December, analysts at Citigroup Inc. estimated on Aug. 1. That compares with 67 billion euros of coupon payments and cash from securities that are maturing in the same period. The market has so far overlooked the Berlusconi saga, with the extra yield investors demand to hold 10-year Italian debt rather than benchmark German bunds falling 10 basis points to 260 since the high court ruling on Aug. 1.

Stock to watch: Credit Agricole SA

Credit Agricole SA, France’s third-largest bank by market value, said profit surged in the second quarter after the sale of its unprofitable Greek unit.

Net income jumped to 696 million euros from a restated 56 million euros a year earlier, the bank, based near Paris, said on its website. Earnings beat the 481.6 million-euro leverage estimate of eight analysts.

Credit Agricole is emerging from two consecutive annual losses after selling its Athens-based Emporiki unit, a business that cut earnings by about 370 million euros in the second quarter of 2012. The bank, led by Chief Executive Officer Jean-Paul Chifflet, also sold its brokerage units and boosted profit at its corporate and investment bank.

Good day and happy trading!

Kristian Camenzuli