• Debt: Equity markets had a negative day yesterday with Europe down 0.44%, the S&P500 0.43% and the Nasdaq 0.22%, as rate cut euphoria eased, and focus shifted to Friday’s upcoming PCE number and the subsequent Fed meetings after September. Investors also await Nvidia’s critical earnings report after the close on Wednesday. In the US, two sectors were in positive territory and 81% of stocks ended lower. Communication Services (+0.43%) and Energy (0.26%) were the lone positives while Consumer Staples (-1.62%) and Health Care were weakest. Keurig Dr Pepper was the biggest loser, dropping 11.5% after announcing an $18b acquisition of Dutch coffee company JDE Peet’s. In Europe, Energy (+0.11%) was the only positive sector. Of the other ten, Utilities (-1.06%) and Industrials (-0.85%) were worst. JDE Peet’s was up 17% on news of the Dr Pepper deal.In macro news yesterday the French parliament has been recalled early so President Bayrou can call a confidence vote on September 8th, to force parties to take a position on his budget plan. The announcement caused a selloff in domestic assets. In the US, President Trump said he wanted to do more deals like the government’s equity deal in Intel. Overnight, President Trump moved to oust Fed Governor Lisa Cook after allegations she falsified documents on mortgage applications. Cook is likely to sue to challenge her removal.
• Stock: Ryanair: (Overweight: PT €29.50, Upside 12%). Details of the company’s upcoming AGM. Apple: (Neutral: PT $223). Details in relation to the lawsuit brought forward by Elon Musk
• Debt: OAT/Bunds widened to highest closing level since April at 75bps following the announcement by French PM Bayrou that a confidence vote in the Government would take place on September 8th.

Opportunities this week:

• The recent dip in L'Oréal's share price, as well as the potential for more political stability in France, presents an opportunity for investors to add exposure to an attractive name at a discount. (BUY PT:€450)
• We held a meeting with senior management of Cairn Homes last Friday, following the release of the company’s interim results earlier in the week. (BUY PT: €2.08)
• Last week, we met with the CEO and CFO of Irish Continental Group to discuss H1 results, and group strategy and outlook more generally. We came away with confidence in the company’s steady growth prospects and operational efficiency focus (BUY PT: €6.20).