Economic Data
(RU) Russia Gold & Forex Reserve w/e July 27th: $505.5B v $507.7B prior
(ES) Spain July Unemployment M/M: -27.8K v -98.9K prior (4th straight monthly decline)
(CH) Swiss Jun Real Retail Sales Y/Y: 3.7% v 6.4% prior
(CH) Swiss July PMI Manufacturing:48.6 v 47.0e
(BR) Brazil July FIPE CPI: 0.1% v 0.2%e
(NO) Norway May AKU Unemployment Rate: 3.0% v 3.0%e
(UK) July PMI Construction: 50.7 v 48.7e
(HK) Hong Kong Jun Retail Sales Value Y/Y: 11.0% v 9.1%e; Retail Sales Volume Y/Y: 8.5% v 6.1%e
(EU) Euro Zone Jun PPI M/M: -0.5% v -0.4%e; Y/Y: 1.8% v 1.9%e; (lowest annual reading since March 2010)
(ZA) South Africa July Naamsa Vehicle Sales Y/Y: 18.3% v 14.2%e
(RO) Romania Central Bank left Interest Rate unchanged at 5.25%; as expected
Fixed Income:
(ES) Spain Debt Agency (Tesoro) sold total €3.13B vs. €2.0-3.0B in 2014, 2016 and 2022 Bono Bonds
Sold €1.06B in 4.75% July 2014 Bonos; Avg Yield 4.774% v 3.592% prior; Bid-to-cover: 3.0x v 3.04x prior; Max Yield 4.848% v 3.609%; Tails 7.4bps
Sold €1.02B in 4.25% Oct 2016 Bono; Avg Yield 5.971% v 5.536% prior; Bid-to-cover: 2.72x v 2.56x prior; Max Yield 6.059% v 5.621% prior; tail 8.8bps v 8.5 bps
Sold €1.05B in 5.85% Jan 2022 Bono; Avg yield: 6.647% v 6.430% prior; Bid-to-cover: 2.4x v 3.18x prior; Max Yield 6.706% v 6.505% prior; tail 5.9bps v 7.5bps
(HU) Hungary Debt Agency (AKK) sold HUF45B vs. HUF45B indictaed 12-Month Bills; Avg Yield 6.98% v 6.93% prior; Bid-to-cover: 1.71x v 1.85x prior
(HU) Hungary Debt Agency (AKK) sold HUF9.0B vs. HUF6.0B indicated in 2015 floater bond; bid-to-cover: 2.17x
SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM
Notes/Observations
S&P affirms Germany's AAA sovereign rating with Stable Outlook
S&P Ratings cuts Cyprus sovereign rating to 'BB'; On Watch Negative
Greek Coalition parties agree on austerity measures timeframe
Fed gives stronger signals of action
UK Construction PMI moves back into expansion
Spain note auction results has no surprises
Equities
FTSE 100 +0.40% at 5735, DAX +0.30% at 6776, CAC-40 +0.30% at 3330, IBEX-35 +0.20% at 6732, FTSE MIB +0.10% at 13,948, SMI +0.70% at 6444, S&P 500 Futures +0.40% at 1375
European equity are trading mixed in a cautious session ahead of the ECB rate decision and Draghi press conference. In the banking sector, outperformers include Unicredit, BNP and SocGen, while laggards include RBS (reports H1 earnings tomorrow Aug 3rd). Companies due to report results during the US morning session include Alliance Bernstein, Cardinal Health, CIGNA, Clorox, DIRECTV, General Motors, Kellogg, OfficeMax and Time Warner Cable.
Shares of BNP Paribas [BNP.FR] have advanced by over 1.5% as the company reported a higher than expected Q2 net profit (results were supported by lower operating expenses). Veolia Environment [VIE.FR] is lower by ~9%, after issuing weaker than expected H1 op profits, citing weakness in France and Italy. Deutsche Post [DPW.DE] has gained over 2.5% on better than expected Q2 results. Additionally, the company raised its FY12 targets partially due to the performance of the DHL unit. Beiersdorf [BEI.DE] is higher by more than 3% after reporting H1 results. Tire manufacturer Continental AG [CON.DE] is up by over 2%, as the company raised its FY forecast. Shares of Lufthansa [LHA.DE] have gained over 2%, as quarterly results exceeded analyst expectations. Adidas [ADS.DE] has lost over 1% after reporting Q2 results, as the company's gross margins dropped y/y. Prosiebensat [PSM.DE]is lower by more than 3%, after issuing Q2 results and reaffirming its FY forecast.
In Switzerland, energy services company Transocean [RIGN.CH] is higher by over 3%, as the company reported better than expected earnings. Shares of Spirent Communications [SPT.UK] are lower by over 15% following the release of its H1 results. BAE Systems [BA.UK] has declined by over 1% after reporting H1 results. In other UK movers, Aquarius Platinum [AQP.UK] has declined by over 3% (incident occurred at the firm's Kwezi shaft in South Africa), Thomas Cook [TCG.UK] has lost over 2% (issued Q3 results) and shares of Smith & Nephew have advanced by over 2% (reported Q2 results, raised dividend). Telecom Italia [TIT.IT] has gained over 2%, as the company reported in line H1 results and reaffirmed its FY12 forecast. Shares of Generali [G.IT] have gained more than 1% on better than expected H1 net profits. In the Netherlands, insurer Delta Lloyd has lost over 3% after reporting a wider than expected net loss for H1.