(sorry but no internet access this morning, which makes this bloomberg only Dawn Patrol pretty dull).
European shares were set for a steady open near two-year highs on Wednesday, with “overbought” technical conditions prompting investors to trade cautiously before the U.S. Federal Reserve’s policy meeting later in the day. The market will focus on the central bank’s statement after a two-day meeting for hints about any change in its stance on stimulus measures in the wake of recent improvement in leading global macroeconomic indicators.
Today, we’ll watch the UK M4 money supply, Spanish GDP, EZ Eco Confidence, US GDP and PCE – FOMC rate decision at 20:15 (Paris time)
AMAZON after the close.
(I know there are sexier pictures, but they are on the net. I wanted to show you some big wave surfing in Portugal…)
Roche 4Q sales slightly ahead but net profit disappoints
Saipem revised targets, cuts 2012 EBIT by 6% after order review – cut 2012 net income target to abouve 900
Saipem cuts profit target for 2012 by 6% after a review of its order book; Eni drops as much as 3.8% on 4.4x avg vol.
Luxottica reported 4Q12 revenues in line, early January trading strong – Management highlighted that “the initial results for 2013, for North America in particular, continue to present strong growth prospects.”
Diageo Shifts to Upscale Tequila for Growth After Cuervo Pact Ends: Retail
US Earnings : AMZN reported after the close, gross margins exceeded estimates, shares are up 10.5%.
BRCM guided below estimates, shares are down 1%.
India’s finance minister sees end to Vodafone dispute: Palaniappan Chidambaram is confident the $2.6bn tax dispute is close to being settled, telling the FT Indian authorities would be holding a third round of talks with Vodafone this week in an attempt to resolve the stand-off.
BP won final approval of a $4 billion guilty plea that resolves all criminal charges against the company related to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. resumed UW at MS
Unicredit selling up to 9.1% in Pekao: Realizing value at a small cost to EPS
Chesapeake’s controversial CEO, Aubrey McClendon, is resigning, citing “philosophical differences” with the board.
Nordea 4Q Net Income Eu840 Mln; Analyst Est. Eu765 Ml
Oerlikon Sells Schlafhorst Businesspark Amid German Revamp
FT reports The eurozone’s biggest economies would raise €30bn-€35bn from their planned levy on financial transactions, according to an expansive European Commission proposal that ensnares trades executed in London, New York or Hong Kong. The revised and strengthened Brussels draft plan sets the stage for France, Germany and nine other euro area countries to agree the exact terms of Europe’s first so-called “Tobin tax” on equity, bond and derivative transactions.
Market consensus sees no change to current policy at the January FOMC meeting on Wednesday.
In that regard, Goldman Sachs expects that the FOMC will still come down squarely on the side of QE’s benefits exceeding its costs for the foreseeable future.
“As a result, we anticipate that securities purchases will continue at the current rate of $85bn / month through 2013, and at a reduced rate of $50 bn / month during 2014,” .”However, if future analysis suggests that QE has diminishing returns, while costs may be convex, this calculus could change,”
Dassault Systemes (MS, Wood) SA: FX & likely ’13 guidance make us cautious pre 4Q12
OW, PT €95 to €93 | Negative RTI
We are long-term bulls of the growth story at Dassault Systèmes but are cautious short-term ahead of FY12 results. We see a combination of high expectations, cautious ‘13e guidance and FX headwinds leading to a reset which we think will give a more attractive entry point.
Dufry Raised To Buy From Neutral at Citigroup
EDP Raised to Buy VS Hold at Citi
Eni PT Cut to EU21.2 at Credit Suisse on Saipem Guidance
Imagination Raised To Overweight VS Equalweight: Morgan Stanley
JCDecaux PT Raised to Eu21 VS Eu18 at Citi, Stays Neutral
Saipem Cut To Underperform VS Buy at BofAML
Saipem PT Cut to Eu34 VS Eu50 at Citigroup; Kept at Buy
Salzgitter Cut To Neutral From Buy at Nomura
Sandvik Cut To Neutral From Overweight at JPMorgan
Software AG Cut to ’Neutral’ at HSBC
Technip Rated New Hold At ABN
UBS Cut to Neutral from Outperform at Exane
WPP Raised to ’Buy’ at Jefferies