** MORNING WRAP **
** US MARKETS **
Dow -0,3%; Nasdaq -0,13%; S&P -0,15%; Soxx 0,13%; Russel2k 0,08%; DJAIG 2,12%;
10yr Bond -0,03%; 10yr Yield 4,99%; Crude future 74,45; Gold 634,45
| Energy 1,32%| Materials 0,54%| ConsDisc -0,05%| Technology -0,22%| Financials
-0,3%| Utilities -0,35%| ConsStaples -0,46%| Healthcare -0,49%| Telecom -0,49%|
Industrials -0,56%
** US: IN PLAY TODAY **
With earnings season starting to wind down and the next FOMC meeting just eight
days away, “incoming” economic data and perhaps ensuing action in the Treasury
market may set the tone of trading tomorrow morning. Most notably will be the
14:30 CET release of the June Personal Income &Spending report, with special
emphasis being placed on the core PCE deflator — Bernanke’s favored inflation
measure. Construction Spending and ISM Index will be released at 16:00 CET while
monthly auto sales with be released throughout the day.
On the earnings front, Archer-Daniels (ADM), Donnelley &Sons (RRD), Eastman
Kodak, Electronic Data Systems (EDS), Emerson Electric (EMR), Hilton Hotels
(HLT), International Paper (IP), Marathon Oil (MRO), Masco (MAS), Qwest (Q),
Valero Energy (VLO) and Verizon (VZ) are among the most notable names reporting
before the bell. After the close, investors can expect reports from Allied Waste
(AW), Computer Sciences (CSC), Electronic Arts (ERTS), Symbol Tech (SBL), and
Wynn Resorts (WYNN).
** ASIAN MARKETS **
Nikkei -0,1%; Kospi -0,76%; HSI -0,15%; Taiwan -0,2%; China -0,04%; India
-0,39%; Thailand -0,25%; Australia -0,18%
** ASIAN HEADLINES **
- Australian Central Bank Names Stevens as Governor to Replace Macfarlane
- Honda Says Higher Copper, Materials Prices Will Exceed Planned Cost Cuts
- HSBC’s Green Says Growth in Asia, Americas to Outpace Europe Over Decade
- SK Telecom Profit Falls as Ban on Handset Subsidies Ends, Raising Expenses
- Asian Finance Stocks Drop, Led by Mitsubishi UFJ; Daiichi, Takeda Advance
- China’s Jinan Steel, Laiwu Steel Agree to Join Together to Rival Baosteel
- United Overseas Second-Quarter Profit Rises to $716 Million on Asset Sales
- China’s Manufacturing Expands at Fastest in 14 Months, CLSA Survey Shows
- Macfarlane, Australia’s Central Bank Chief, Leaves a Low-Inflation Legacy
- China Bank Fraud Fails to Deter Investors as Tainted Lenders Sell Stock
** EUROPE: IN PLAY TODAY **
FRANCE
Eramet announced that 2Q revenue was up 11.9% to E797m (E712 same time last
year). The group has a positive outlook for 2H.
Soitec completed the buyout of TraciT Technologies.
Imerys Sa closed at a 3-month relative low against the Cac 40.
Peugeot Sa reached a new 3-month relative low against the Cac 40.
ArcelorMittal was rated new “outperform” by Credit Suisse
GERMANY/AUSTRIA
Deutsche Bank announced a 2Q net income of E1.23bln (E1.22bln expected) compared
to E947m in the same period last year.
Metro AG 2Q announced that 2Q net income increased to E262.4m (E258m expected)
from E139m same time last year, on a revenue of E14.03bln (E13.87bln), up 6.7%.
Deutsche Post reported a 2Q net income of E254m (E334.5m expected), on revenue
of E14.5bln (E11bln a year ago and less than expected). The group sees FY
revenue of E60bln.
Heidelbergcement Ag closed at a 3-month relative high against the Dax.
Heidelberger Druckmaschinen announced 1Q revenue of E719m. Orders rose 21% and
the group left its outlook unchanged.
Altana announced that the possible sale of its pharmaceutical unit is giving a
wide interest; KKR, EQT Partners AB and Solvay might be discussing buyout (FT
Deutschland).
RWE Ag reached a new 3-month relative high against the Dax.
Deutsche Telekom Ag-Reg reached a new 3-month relative low against the Dax.
Adidas-Salomon Ag closed at a 3-month relative low against the Dax.
Epcos expected 3Q earnings
MAN AG 2Q is expected to report 2Q results, with net income increasing 92% to
E186m on a revenue of E3.57bln, up 6.5%.
UK/IRELAND
Standard life announces its 2Q results, just after the group started its £2.1bln
initial public offering.
Alliance UniChem reported 1H EBIT of £135.8m, on revenue up 2.2% to £4.7bln.
Ryanair Holdings delivered 1Q net income of E115.7 vs E97m expected and E69.6m
in the same period last year. CEO Michael O’Leary said: “based on advanced
bookings, that we do not expect this yield buoyancy to be maintained at similar
levels during the second quarter or indeed the second half of the fiscal year.”.
The airline is 90% hedged at $74 a barrel for November and December and unhedged
thereafter currently.
Lonmin trading update, the group previously declared that it will borrow $300m
for debt refinancing and acquisitions.
Hbos is expected to report 1H results. The group recently announced it may be
interested in some Barclays branches to increase its UK retail distribution
network.
Amec (-2.55% to 277p) printed a new 52w low.
Elan Corp Plc’s ADR closed 2.73% above its European equivalent (including
after-hour session). The company is expected to report today its 2Q results.
Severn Trent Plc closed at a 3-month relative high against the FTSE 100.
ITV Plc reached a new 3-month relative low against the FTSE 100.
PZ Cussons reports its annual results and is expecting FY income ex-item to be
inline with forecasts.
Travis Perkins is expected to announce 1H profit dropped 11%, while revenue is
scheduled to rise 4.4% to£1.35bln.
William Hill reports 1H results. The group is “comfortable” with net income
expectations of £169.5m.
Wimpey (George) is expected to report 1H profit increased 15%, thanks to a rise
in buyer confidence.
Prudential Plc reached a new 3-month relative low against the FTSE 100.
Allied Irish Banks is expected to announce 1H results.
Elan Corporation may announce 2Q 2006 Results. The group’s Tysabri treatment is
available in the US.
Allied Irish Banks 1H earnings
Antofagasta trading update, the group’s target price was raised by UBS, ABN Amro
and Seymour Pierce, due to higher forecast for metal prices.
Jardine Lloyd Thompson Group may report 1H results.
SPAIN/PORTUGAL/GREECE
Banco Espanol de Credito starts trading on Spain’s benchmark IBEX 35 index
Logista 2Q 2006 earnings
Cintra Concesiones De Infrae closed at a 3-month relative low against the Ibex.
Brisa Auto-Estradas-Priv Shr closed at a 3-month relative low against the PSI
20.
BENELUX
KPN is scheduled to report that 2Q profit increased 46% due to job cuts. The
market is expecting net income to rise to E336m (E230m same time last year).
Umicore reached a new 3-month relative low against the BEL 20.
ITALY
AEM Spa closed at a 3-month relative high against the S&P/MIB.
Eni may bid for French oil company Maurel & Prom according to Corriere della
Sera.
SWITZERLAND
Actelion Ltd closed at a 3-month relative high against the SMI.
Clariant Ag-Reg closed at a 3-month relative low against the SMI.
Lonza Group Ag-Reg reached a new 3-month relative low against the SMI.
Serono price target raised to SF930 from SF890 by Lehman Brothers.
SCANDINAVIA
TDC A/S reached a new 3-month relative high against the OMX Copenhagen 20.
Kesko interim results
Tele2 may announce that 2Q net income dropped to SEK227m from SEK676m a year
ago.
DIVIDENDS
Banco Santander Central Hisp: 0.09087 euro