US President helps boost markets

MARKET OUTLOOK

- US: US markets advanced last week, reassured that the subprime crunch won't have a contagion effect on the country's economy. Shares from technological hardware, retailing, semiconductors and energy were among the best performers, while diversified financials, banks, utilities, insurance and real estate lost ground. From a technical point of view, the current bounce should continue as daily indicators are turning bullish, pleading for the short term up trend to resume.

- EUROPE: European markets closed up at the end of the week as the US President confirmed that necessary action will be taken to help overcome the subprime mortgage crisis. All sectors managed to outperform the market last week, except the banking, health care and insurance sectors. Technically, further advances should be expected as daily indicators are reversing up, calling for a positive scenario.

COMPANY PREVIEW

Vinci (EUR 52.24 ; 1.36% ; DG ; SGEF.PA)

On Tuesday, Vinci is seen reporting H1 earnings. H1 net income seen at E591m (E518m a year earlier) on revenues of E13.44bn (E11.89bn). Last week, a venture between Vinci and Hochtief was named the preferred bidder for a E300m contract to run 28 miles of German highways. On August 7, Vinci and Bouygues were awarded a contract to build a new shelter for the damaged reactor at the Chernobyl nuclear power plant in Ukraine. Separately, the Co received the EU antitrust approval to acquire Soletanche.

Enel (EUR 7.579 ; -0.15% ; ENEL ; ENEI.MI)

Enel will announce H1 net income of E1.62bn (E1.97bn last year) on Wednesday. Last week, the Co's CEO Fulvio Conti acknowledged that the Co's expansion was complete except for 'small' purchases. In other news, Enel received the Russia's Anti-Monopoly Service approval to raise its stake in generator OAO OGK-5 to 100%.

Campbell Soup (USD 37.75 ; -1.49% ; CPB ; CPB.N)

Thursday, Campbell Soup may deliver Q4 EPS of $0.18 ($0.18 a year ago) on sales of $1.51bn ($1.45bn). At the beginning of the month the Co announced that its Godiva chocolate unit may attract bids of as much as $1bn from Hershey, the Wm. Wrigley Jr. Co and other consumer goods Cos seeking to accelerate growth with premium priced chocolates. Separately, Campbell Soup announced the appointment of Kirk Elliott as Vice President, Corporate Strategy.

National Semiconductor (USD 26.32 ; -1.97% ; NSM ; NSM.N)

On the same day, National Semiconductor is scheduled to post Q1 results. Q1 EPS seen at $0.26 ($0.36 a year ago) on sales of $466.7m ($541.4m). Last month, National Semiconductor introduced two LME(TM) families of high-fidelity audio operational amplifiers that practically eliminate distortion and therefore enable high-end audio manufacturers to produce systems with cleaner, 'true to the original recording' sound quality.

Telecom Italia (EUR 2.083 ; 1.71% ; TIT ; TIT.MI)

Finally, Telecom Italia may present its H1 net income of E1.5bn on revenues of E15.47bn on Friday. Last week, the group declared that its Brazilian unit plans to offer fixed line services by the end of the year (O Estado de S. Paulo). On August 4, Telecom Italia said it extended an E8bn loan to 2014 (Il Sole-24 Ore).