Good morning,

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

• Deutsche Bank Said to Merge Debt Groups as Head Trader Departs

• European Banks Face Capital Gap as Attention Turns to Leverage

• U.S. Regulators Demand Right to Probe Books of EU Banks, FT Reports

• Asian Stocks and Aussie Fall After China Manufacturing Data

• U.K. Banks Strike Deal to Publish Detailed Local Lending Data

• Etisalat in Talks to Acquire Vivendi’s Stake in Maroc Telecom

• Portugal’s Portas Named Vice-Premier in Govt Reshuffle

• Spanish Pension Raids Spell Bad News for Bond Sales: Euro Credit

• Virgin Media and Shareholders Agree to Settle Takeover Suits

• UBS Bid-Rigging Trial Judge Skeptical of U.S. Loss Calculation

• Elan Investors Get SAC Case Evidence Tied to Martoma Trades

Companies in Europe reporting results today:

• EDP Renovaveis (EDPR PL) pre-mkt, 1H adj. EPS es. EU0.09 (2 ests.)

• Elan (ELN ID) pre-mkt, 2Q adj. loss/shr est. EU0.01

• Syngenta (SYNN VX) 7:00am, 1H adj. EPS est. $17.15

• Groupe Eurotunnel (GET FP) 7:00am, 1Q rev., traffic

• Alstom (ALO FP) 7:00am, 1Q orders, sales

• Volvo (VOLVB SS) 7:20am, 2Q adj. EPS est. SEK1.08

• Daimler (DAI GR) 7:30am, 2Q adj. EPS est. EU1.76 (2 ests.)

• OMV (OMV AV) 7:30am, 2Q IMS

• Puma (PUM GR) 8:00am, 2Q adj. EPS est. EU1.52

• ARM Holdings (ARM LN) 8:00am, 2Q adj. EPS est. GBP0.05

• GlaxoSmithKline (GSK LN) 8:00am, 2Q adj. EPS est. GBP0.26

• National Express (NEX LN) 8:00am, 1H adj. EPS est. GBP0.11 (2 ests.)

• Renishaw (RSW LN) 8:00am, FY adj. EPS est. GBP0.96

• Compass Group (CPG LN) 8:00am, IMS

• MTU Aero Engines (MTX GR) 8:00am, 2Q adj. EPS est. EU1.06

• Kingfisher (KGF LN) 8:00am, 2Q, no est.

• British Land (BLND LN) 8:00am, 1Q IMS

• Easyjet (EZJ LN) 8:00am, 3Q IMS

• Tate & Lyle (TATE LN) 8:00am, IMS

• TalkTalk (TALK LN) 8:00am, 1Q IMS

• Carphone Warehouse (CPW LN) 8:00am, 1Q IMS

• Edenred (EDEN FP) 8:45am, 1H adj. EPS est: EU0.43 (1 est.)

• Iberdrola (IBE SM) 9:00am, 1H adj. EPS est: EU0.235 (2 ests.)

• Unibail-Rodamco (UL NA) aft-mkt, 1H adj. EPS est: EU5.435 (2 ests.)

• Euler Hermes (ELE FP) aft-mkt, 2Q, no est.

• St-Gobain (SGO FP) aft-mkt, 1H adj. EPS est. EU0.91

• Mediaset Espana (TL5 SM) aft-mkt, 1H, no est.

• Atos (ATO FP) aft-mkt, 1H adj. EPS est. EU1.89

• Areva (AREVA FP) aft-mkt, 1H, no est.

• Thales (HO FP) 1H adj. EPS est. EU1.16 (3 ests.)

• ICADE (ICAD FP) 1H adj. EPS est: EU2.15 (2 ests.)

• Banco BPI (BPI PL) 1H, no est.

• Zon Multimedia (ZON PL) 1H, no est.

Asian stocks fell for the first time in three days, while Australia’s dollar and copper slid, as a contraction in Chinese manufacturing worsened. Indian stocks declined and swap rates surged after the central bank tightened access to cash.

The MSCI Asia Pacific Index lost 0.1 percent at 7:02 a.m. in London as the Shanghai Composite Index sank 0.7 percent and Japan’s Topix Index slipped 0.2 percent. Euro Stoxx 50 futures rose 0.1 percent, while Standard & Poor’s 500 Index futures were little changed. Apple Inc. rose after U.S. exchanges closed as its earnings topped estimates. The co-called Aussie dollar dropped 0.5 percent and copper lost 0.7 percent.

China’s manufacturing contracted faster in July, signaling a deepening slowdown in the world’s second-largest economy, according to an initial purchasing managers index compiled by HSBC Holdings Plc and Markit Economics. The Reserve Bank of India yesterday capped the amount of funds lenders can get under the liquidity adjustment facility to 0.5 percent of their net demand. A U.S. report due today may show gains in new home sales slowed.

“The bad PMI data is proving that the economy is declining further and there are worries that company profits may retreat too,” said Zhang Haidong, an analyst at Tebon Securities Co. in Shanghai. “It seems the government is persistent in not changing its monetary policy and this will drag the market lower.”

The Hang Seng Index fell 0.2 percent and the Hang Seng China Enterprises Index of mainland shares dropped 0.8 percent. The preliminary reading of 47.7 compares with the 48.2 median estimate in a Bloomberg News survey of 19 economists and 48.2 in June. Readings below 50 indicate contraction.

Good day and happy trading!

Kristian Camenzuli