European Factors - Shares set to dip after strong rally

(Adds company news, futures; updates snapshot)

PARIS, Aug 10 (Reuters) - European equities are expected to retreat on
Monday, as investors look to book some gains following a four-week rally that
has propelled stocks to their highest level in nine months.

By 0616 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were down between 0.4 percent and 0.5
percent. Earlier, financial spreadbetters had expected Britain's FTSE 100
.FTSE to open 9 to 19 points lower, or as much as 0.4 percent.

On the macro front, Japanese manufacturers forecast a sixth straight
quarterly fall in machinery orders in July-September, suggesting they remain
wary of expanding their production capacity despite signs of a global economic
recovery. [ID:nLA125957]

In Europe, The Telegraph reported on Monday that the Bank of England will
downgrade its growth forecasts and issue a warning this week that the UK economy
risks slumping into a debt deflation trap. The newspaper said BoE Governor
Mervyn King will use the Bank's Inflation Report on Wednesday to say the risk of
such a slump was one of the main reasons behind the bank's surprise decision
last week to extend its quantitative easing programme. [ID:nL963227]

The FTSEurofirst 300 .FTEU3 index of top European shares rose 1.3 percent
on Friday to end at 950.38 points, its highest close since Nov. 5, after
better-than-expected U.S. jobs data boosted sentiment.

Europe's benchmark index has risen nearly 17 percent since July 10, and is
now up 14 percent in 2009. It has surged 47 percent since reaching a floor in
early March, but is still down 42 percent from a multiyear peak reached in
mid-2007.

----------------------MARKET SNAPSHOT AT 0611 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,010.48 1.34 % 13.4

NIKKEI .N225 10,524.26 1.08 % 112.17

MSCI ASIA EX-JP .MIASJ0000PUS 430.37 0.66 % 2.84

EUR/USD EUR= 1.4186 0.08 % 0.0012

USD/JPY JPY= 97.24 -0.44 % -0.4300

10-YR US TSY YLD US10YT=RR 3.880 -- 0.02

10-YR BUND YLD EU10YT=RR 3.517 -- 0.00

SPOT GOLD XAU= $955.05 0.13 % $1.25

US CRUDE CLc1 $70.49 -0.62 % -0.44

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

* July jobs data lifts stock indexes more than 1 pct [ID:nN07407276]

* Asia stocks buoyed by US jobs data [ID:nSP479269]

* Tokyo's Nikkei share average closes up 1.08 pct [ID:nECB001067]

* Oil steady at $71, buoyed by stocks, softer dollar [ID:nSP480396]

* Dollar retains gains on jobs boost, but dips vs yen [ID:nT241716]

* JGBs fall as econ hopes hit Treasuries, lift Nikkei [ID:nT229426]

* Shanghai copper tracks LME gains, data eyed [ID:nSHA46425]

* Gold trades near $955, ETF dips 0.4 pct [ID:nT240846]

COMPANY NEWS:

RIO TINTO (RIO.L)

Shares in the global miner fell as much as 2 percent in Australia on Monday
as investors turned a little nervous after China stepped up espionage
allegations against the world's second-largest iron ore miner. For details, see:
[ID:nSYD479075]

UBS (UBSN.VX)

* The U.S. government and UBS have not yet settled a tax evasion dispute. A
new status conference will be held on Aug. 12.

* A Swiss newspaper reported on Sunday the U.S.-Swiss talks to settle the
tax evasion row against UBS had stalled as the two states had yet to agree legal
details on how to allow the transfer of some bank client data to Washington. For
related news, click on [UBSN.VX-LEN-RTRS]

PUBLICIS (PUBP.PA)

Publicis struck a $530 million deal with Microsoft (MSFT.O) to buy the
Razorfish ad agency and boost its position in digital communications, the
world's third-largest communications group said on Sunday. For story click on
[ID:nL9724772]

ENI (ENI.MI)

The company said it could not exclude an "adverse" outcome from
investigations into a bribery scheme related to construction of natural gas
facilities in Nigeria, adding such an outcome could have a "significant" impact
on results. For details, see:[ID:nL7437807]

DEUTSCHE BANK (DBKGn.DE)

China's Hua Xia Bank (600015.SS), partly owned by Deutsche Bank, posted a
13.6 percent drop in first-half earnings, in line with analysts' expectations,
as net interest income fell. For details, see: [ID:nSHA234147]

ALLIANZ (ALVG.DE)

The insurer may still see some setbacks ahead as the financial crisis has
not yet ended, Chief Financial Officer Helmut Perlet said in an interview with
the Frankfurter Allgemeine Sonntagszeitung. Related news [ALVG.DE-LEN-RTRS]

E.ON (EONGn.DE)

Germany's largest utility and its labour unions said they have agreed in
principle to implement the utility's programme to cut 1.5 billion euros ($2.15
billion) costs by 2011. The utility will refrain from mandatory layoffs until
2012, although it will lower its domestic workforce through retirements,
outsourcing and natural attrition. For details, see:[ID:nL8639754]

SAP (SAPG.DE)

The software maker is considering bidding for U.S. software firm Tibco
(TIBX.O), WirtschaftsWoche reported on Saturday, citing a source close to talks
between the two companies. SAP declined to comment on the report. Related news
[SAPG.DE-LEN-RTRS]

ING (ING.AS), JULIUS BAER (BAER.VX)

ING may finalise the sale of its private banking units in Asia and
Switzerland by September, with Julius Baer emerging as a strong contender,
sources with knowledge of the deal said. For related news, click on
[BAER.VX-LEN-RTRS]

NOVARTIS (NOVN.VX)

Barron's business weekly said on Sunday Novartis' stock is poised to rise as
the company's pipeline of new drugs is one of the most promising in the
industry, For related news, click on [NOVN.VX-LEN-RTRS]

XSTRATA (XTA.L)

The miner said on Sunday it was in talks to possibly sell a major stake in a
South America mining project. The company, which is in a merger battle with peer
Anglo American (AAL.L), said it had received expressions of interest in the
introduction of an additional partner into the El Morro copper-gold project in
Chile, or the eventual sale of Xstrata's 70 percent interest. For details,
see:[ID:nL933859]

LLOYDS BANKING GROUP (LLOY.L)

Lloyds Banking Group may consider a multi-billion pound share issue as part
of a partial withdrawal from the government's asset protection scheme, according
to a report in the Sunday Times. For details, see:[ID:nL918768]

(Reporting by Blaise Robinson, editing by Will Waterman)