European Factors -- Shares set to rise; earnings eyed

(Adds futures, more company items, updates snapshot table)

LONDON, July 30 (Reuters) - European shares were set to rise on Thursday
with investors having a raft of corporate earnings to digest, which have been
mostly positive so far in the reporting season.

At 0644 GMT, DJ Euro Stoxx STXEc1 futures were up 1.2 percent, Germany's
DAX futures FDXc1 were up 1 percent and France's CAC-40 futures FCEc1 were
up 1 percent.
On Wednesday, the FTSEurofirst 300 .FTEU3 index of top European shares
rose 0.9 percent to 910.67 points, just short of Monday's eight-month closing
high.

The index is up more than 41 percent from its lifetime low of March 9, as
investors have become more confident on the prospects for economic recovery.

With earnings season at its peak, companies reporting on Thursday include
BASF BASF.DE, Siemens (SIEGn.DE) and Spain's Telefonica (TEF.MC).

Energy companies may suffer as crude prices CLc1 fell 5.8 percent on
Wednesday to $63.35 a barrel, as U.S. government data showed a surprisingly
large build in inventories last week.

Later in the session, investor focus will turn to weekly jobless data in the
United States.

Japan's benchmark Nikkei 225 .N225 closed 0.5 percent higher on Thursday.

----------------------MARKET SNAPSHOT AT 0615 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 975.15 -0.46 % -4.47

NIKKEI .N225 10,165.21 0.51 % 51.97

MSCI ASIA EX-JP .MIASJ0000PUS 424.85 -0.18 % -0.78

EUR/USD EUR= 1.4072 0.28 % 0.0039

USD/JPY JPY= 95.01 -0.04 % -0.0400

10-YR US TSY YLD US10YT=RR 3.696 -- 0.03

10-YR BUND YLD EU10YT=RR 3.469 -- 0.04

SPOT GOLD XAU= $930.40 0.15 % $1.40

US CRUDE CLc1 $63.22 -0.21 % -0.13

-----------------------------------------------------------------------

* METALS-Copper up slightly after sell-off, China woes weigh [ID:nMAN524900]

* US STOCKS-Wall St sags on China-driven economy fears [ID:nN29300652]

* Nikkei flat, China worry offsets Honda and Nissan [ID:nT359672]

* TREASURIES-Edge down in Asia ahead of 7-yr debt sale [ID:nT359622]

* Dollar falls after China 'loose policy' comment [ID:nT359613]

* PRECIOUS-Gold steadies as dollar, stocks eyed [ID:nT364164]

* Oil dips towards $63 on US crude build, China fears ID:nSP524953]

* GLOBAL MARKETS-Asian shares steady after bruising [ID:nT109722]

COMPANY ITEMS

ROYAL DUTCH SHELL

Royal Dutch Shell (RDSa.L) posted a 70 percent fall in net profit in the
second quarter compared with the same period of 2008, as oil prices and refining
margins tumbled. [ID:nLT485219]

BASF BASF.DE

The world's largest chemical company said it expects a significant decline
in sales and earnings in 2009. The company reported second-quarter net profit of
343 million euros ($485.2 million), below Reuters estimates of 382 million
euros. Sales reached 12.5 billion euros, largely in line with estimates of 12.43
billion euros. [ID:nWEA3357] Poll: [ID:nLO5143]

Related news [BASF.DE-E]

ALCATEL-LUCENT (ALUA.PA)

Alcatel-Lucent says full-year 2009 guidance to be around break-even at the
adjusted; operating income level reiterated; says Q2 reported net income (group
share) of euro 14 million; says Q2 adjusted EBIT loss 62 million euros; says
reiterate our view that our addressable market should be down between 8% and 12%
at constant currency in 2009; Reuters poll average for Alcatel-Lucent Q2 revenue
3.86 billion euros, for adjusted EBIT loss 89.8 million. For details, see:
[ALUA.PA-LEN-RTRS]

SANOFI-AVENTIS (SASY.PA)

The French drugs group said it was buying a 50 percent stake in animal
health venture Merial from Merck (MRK.N) for $4 billion to take full control of
the business. For details, see: [ID:nLU307753]

TELEFONICA (TEF.MC)

The telecoms giant said first half profit rose 0.7 percent to 3.62 billion
euros ($5.12 billion), beating analyst expectations as strength in its Latin
American business partly offset weakness at home base Spain. [ID:nMDT006594]

SIEMENS SIEGN.DE

Engineering conglomerate Siemens (SIEGn.DE) reported a sharp decline in
quarterly operating profit as the global recession took a hefty toll on the
German group's bread-and-butter industrial activitiesThird-quarter operating
profit fell 21 percent. [ID:nLU544624]

EDF (EDF.PA)

French power group EDF (EDF.PA) posted a bigger-than-expected 12 percent
rise in first-half core earnings, lifted by the acquisition of British Energy,
but rising costs hit its bottom line. [ID:nLU711560]

RENAULT (RENA.PA)

Renault says H1 sales 15.991 billion euros, down 23.7 percent; says H1
operating loss 946 million euros; says H1 net loss 2.712 billion euros; Reuters
poll average for Renault H1 sales 15.99 billion euros, for net loss 2.41
billion; confirms targetting positive free cash flow and market share increase
in 2009. For details, see: [RENA.PA-LEN-RTRS]

BAE SYSTEMS (BAES.L)

Britain's BAE Systems (BAES.L) posted a sharp rise in earnings to nearly 1
billion pounds in the first half of the year, in line with forecasts, and said
it continues to expect good growth for the full year. [ID:nLT54465]

FRANCE TELECOM (FTE.PA)

France Telecom says H1 EBITDA margin 34.7 percent, down 0.7 points on
consumption slowdown, regulatory pressure; says Q2 EBITDA margin 35.4 percent,
up 0.2 points, as cost cuts, transformation plan kick in; says H1 organic cash
flow was 8.1 billion euros, maintains 2009 target of 8 billion euros.

For details, see: [FTE.PA-LEN-RTRS]

SOLVAY (SOLB.BR)

The company says Q2 revenue 2.07 billion euros (Reuters average forecast
2.007 billion euros); Q2 rebit 164 million euros (Reuters average forecast 139
million euros); says pharmaceuticals sector will achieve in 2009 a higher
operating result than last year. For details, see: [SOLB.BR-LEN-RTRS]

BSkyB (BSY.L)

Britain's dominant pay-TV firm BSkyB (BSY.L) added 124,000 net customers in
the fourth quarter due to strong demand for its high definition service and said
subscribers were joining at the fastest rate for five years.

BSkyB full-year revenue rose 7 percent to 5.3 billion pounds ($8.7 billion),
in line with analyst expectations, with adjusted operating profit up 4 percent
at 780 million pounds. [ID:nLU718440]

CAPGEMINI (CAPP.PA)

Capgemini says H1 operating margin 6.6 percent of sales; says sees H2 sales
down 4-6 percent; says tighter cost control should however permit the group to
achieve operating margin of around 7 percent of revenues; eyes 2009 sales
decline of 3-4 percent. For details, see: [CAPP.PA-LEN-RTRS]

AIR LIQUIDE (AIRP.PA)

Air Liquide says H1 sales fall 6.8 percent to 5.937 billion euros,
comparable sales fall 5.8 percent; says H1 recurring operating profit down 6.5
percent at 889 million euros. For details, see: [AIRP.PA-LEN-RTRS]

BRITISH AMERICAN TOBACCO (BATS.L)

British American Tobacco Plc (BATS.L), the world's second-biggest cigarette
maker, beat forecasts with a 25 percent rise in first-half earnings and said it
was on track for a year of strong earnings growth. [ID:nLT691684]

REPSOL (REP.MC)

Spanish oil major Repsol (REP.MC) said second-quarter net profit excluding
inventory effects (CCS) and adjusted for one-time gains reached 265 million
euros, beating forecasts. [ID:nMDT006598]

MAN (MANG.DE)

German industrial group MAN (MANG.DE) said it saw no sign of an upturn as it
posted a plunge in second-quarter operating earnings in line with market
expectations. Second-quarter operating earnings, hit by a sharp fall in demand
for commercial vehicles, fell to 144 million euros ($203.7 million) from a
year-ago 526 million euros. [ID:nLU359643]

DEUTSCHE LUFTHANSA (LHAG.DE)

Germany's biggest airline published key first-half results after the close
of markets on Wednesday, saying its operating profit fell 98.8 percent to 8
million euros, missing an average analyst estimate of 27 million euros.
[ID:nLS231334] Poll: [ID:nLO729064]

The company will publish full first-half results on Thursday.

Related news [LHAG.DE-E]

DEUTSCHE BANK (DBKGn.DE)

Deutsche Bank has been mandated with the sale of pharmaceutical wholeseller
Phoenix, German daily Financial Times Deutschland reported. The newspaper said a
second bank would likely be mandated as well.

Separately, court papers showed that lawyers for Deutsche Bank and a
subsidiary of Saudi Arabia's Algosaibi Group are arguing over whether the bank's
claim for $74.2 million in a foreign exchange swap deal belongs in a New York
court. [ID:nN29274059]

In addition, Deutsche and Goldman Sachs were issued subpoenas by a U.S.
Senate panel looking for evidence of fraud in the 2008 mortgage-market meltdown,
the Wall Street Journal said, citing people familiar with the matter.
[ID:nBNG408818]

Related news [DBKGn.DE-E]

(Reporting by Brian Gorman)