• Macro:Global equities had a mixed day yesterday with the US trending lower as investors reduced risk ahead of the Fed Chairs update at Jackson Hole later this week. European stocks finished higher, by 0.70%. The S&P 500 fell 0.59% whilst the Nasdaq dropped 1.46%. In the US, seven of eleven sectors were positive with 69.4% of stocks in the green. Real Estate (+1.76%) and Consumer Staples (+0.95%) were the strongest sectors. Information Technology (-1.91%) and Communication Services (-1.18%) were the weakest. AI related companies had a particularly bad day with Palantir falling 9.24%. In Europe ten of eleven sectors were positive with 79.5% of companies finishing higher. Consumer Discretionary (+1.88%) and Materials (+1.58%) were the two strongest sectors. Real Estate (-0.17%) was the only negative sector on the day. JD Sports rose 6.95% after the British sports retailer received a price target upgrade from a leading investment bank. In macro news yesterday the focus remained on potential trilateral talks between the US, Russia and Ukraine in an effort to reach a peace deal. Trump extended a call to Hungarian Prime Minister Victor Orban to understand Hungary’s reasoning for blocking Ukraine’s membership of the EU. This morning UK CPI for July increased by 0.1% MoM, which reflected an annualised rate of 3.8% (vs Est 3.7%). The rise was mainly attributed to airfare costs. In macro news today, EU July final CPI will be released at 10:00, with the annualised rate expected to remain at 2%. In the US MBA Mortgage Applications for the week ended 15th August will be released at 12:00. At 19:00, FOMC Minutes from the July meeting will be released. Central bank speakers today include the ECB’s Lagarde at 8:10 whilst the Fed’s Waller and Bostic will speak at 16:00 and 20:00 respectively.
• Debt: The Japanese 10-year yield reached its highest level since 2008, at 1.62%. The news highlights the ongoing pressure on longer dated sovereign debt.

Opportunities this week:

• With Kingspan’s shares ending last week at a 52-week low, we believe it opportune to highlight our €93 price target which implies over 30% upside, supporting our reiterated BUY recommendation.  
• During our recent meeting, Kerry CFO, Marguerite Larkin, struck an optimistic tone, highlighting the group’s growth drivers in its key markets. BUY PT: €104.
• We continue to rate Uniphar as a Buy with PT €3.50 (60% upside) given the low valuation levels for this well run, steadily growing business, with a strong niche business model, and potential for debt reduction in the foreseeable future.