• Macro: Equity markets had a mixed day yesterday with the S&P500 -0.49% and the Nasdaq -0.65%, after a weak ISM Services data release, whereas Europe rose +0.15%. Chip stocks were weak on news that President Trump plans to impose semiconductor tariffs in the near future. Palantir rose +7.8% following its results, whereas Gartner the tech research firm fell -27% after providing weak guidance. In Europe, medical devices maker Smith and Nephew rose c. 14% on a big earnings beat as well as a $500m buyback announcement. Diageo reacted well to it’s results (+4.9%).In Europe, French Industrial and Manufacturing Production for June was stronger than expected, as the country’s Budget Balance continued to worsen to -100bn YTD from -94bn YTD in May. A number of finalised Services and Composite PMIs for July were released with Germany, UK and Eurozone revised up slightly. In the US, the final July Composite and Services PMIs were revised up 0.5. The US Trade Balance declined from $71bn to $60bn in June, with Imports -3.7% MoM and Exports -0.5% MoM, indicating tariffs may be starting to work from a mercantilist perspective. The ISM service index fell to 50.1 in July (vs 51.5 est. and 50.8 prior).Economic releases today include Ireland’s July Composite and Services PMI. Germany’s June Factory Orders, UK and German Construction PMIs for July and EU Retail sales (June 2.6% YoY est.). In the US we have MBA Mortgage application data.
• Stocks: Following a mixed set of results last week for Bank of Ireland we met with the bank’s IR team to discuss these results in more detail. We covered the following topic on the call: 1) Financial Performance and Outlook 2) Lending Market and Growth 3) Competition 4) Cost Management 5) Risk and Provisions 6) UK Operations 7) Wealth Management and fees income and 8) Balance Sheet Management. The meeting provided no major surprises but reassured on the pace of restructuring and the conservative nature of the impairment charges. The underlying lending growth remains well supported by the domestic mortgage market. We continue to rate the stock as Overweight with an unchanged PT of €13.30, based on PE, Price to Book multiples and Dividend Yield. (see page two)
• Debt: Core bond yields were little changed despite weaker ISM services data.

Opportunities this week:

• Despite the recent downward correction seen in GSK’s shares, we view it as a fundamentally solid healthcare business with a strong franchise, as such, we reiterate our BUY rating on the stock. (BUY PT: 1890p)
• Given the selloff in Kingspan’s shares over the last month (-10% in June) and the possibility the company’s H1 guidance may prove overly conservative, we believe it is an opportune time to highlight the stock as a buying opportunity. (BUY PT: €94.10)
• In our view, the recent pullback in Glanbia’s shares appears unwarranted, providing an attractive entry point for investors. (BUY PT €21.50)