{CS FP Equity ALV GY Equity GRT D <GO>}* Axa- Q1 life sales disappointed due to lower sales of protection and health products but the company guided that it is still expecting growth for the FY.- P&C revenues growing by 3% and life new business margin rising to 33% from 32%.- It has been oversold this year, following its very strong share price performance last year, mainly on exaggerated concerns about its exposure to falling US and European interest rates.- It offers good growth at an attractive price and that its Asian franchise is undervalued in particular.- CS has tested strong support on 17.20 levels, downside is limited to 16.88/90, first resitance on 200d MA @ 17.74, if closed higher could quickly test the 18.33* Allianz- Allianz is reporting full result tomorrow- Allianz released strong Q1 headline numbers on May 7th apparently mainly due to strong P&C results, but it looks as if Pimco is stillunder considerable pressure.- The key missing number is outflows at Pimco. Morningstar estimates that Pimco had some $15bn of outflows in Q1 with another $5.5bn in April.
- Pimco remains under pressure, with earnings likely to be down some 24%, causing group operating profit to fall by 3%.- Limited growth potential in its insurance operations, low growth markets with significant exposure to low German yields.- The risks of being Short ALV is a continued fall in US bond yields, which might help Pimco’s performance, and stronger than expected growth in its insurance operation.- On the chart basis upside potential is 2.6% up to 125.20, still a gap open lower 114.18/114.38...the 117.25 is a first support before testing lower levelsBUY CS SELL ALV- the spread is trading on 10 month low levels...I expect a quick 4% on the spread.