Europe Factors-Shares seen up as Berlusconi plans to quit

LONDON, Nov 9 (Reuters) - European shares were set to rally on Wednesday as
Italian Prime Minister Silvio Berlusconi's pledge to resign after failing to
secure majority in a crucial vote revived hopes a new leader would tackle the
country's debt problems more aggressively.
Concerns about the Berlusconi government's ability to implement reforms to
boost Italy's sluggish growth and cut its huge debt have resulted in a sharp
rise in Italy's borrowing costs towards unsustainable levels.
However, gains could be capped after clearing house LCH.Clearnet SA raised
the initial margin call applied to Italian debt by between 3.5 and 5 percentage
points across all maturities of BTP and inflation-linked BTP bonds.

Futures for Euro STOXX 50 , for Germany's DAX and for
France's CAC pared earlier gains, up 1.1 to 1.5 percent after the
LCH.Clearnet announcement.
"Although there's still a lack of clarity as to precisely how the next
leadership will be formed, investors are clearly encouraged by the fact there
will now be change at the top and for the time being at least, this is bringing
the bulls back into play," Terry Pratt, trader at IG Markets, said.
Berlusconi said he would quit as soon as parliament passed budget reforms
urged by European partners to help Italy stave off a debt crisis that is
threatening the euro zone. Votes are likely this month and opposition leaders
may try to bring this forward.
Technical analysts said it was encouraging that the euro zone's blue chip
Euro STOXX 50 index found support at around 2,230 -- its 50-day
moving average. The index rose 1.2 percent to 2,303.20 points in the previous
session.
"What we are looking for now is evidence that this level develops into a
floor which then acts as a springboard to further upside," Bill McNamara,
technical analyst at Charles Stanley, said.
"Clearly, it is not going to be easy to break back up through 2,500 in the
near term, but the longer the index is able to hold above 2,200, the greater the
chances of another push higher."
Mining shares were expected to get support from stronger metals prices after
China's annual inflation rate fell sharply in October, improving sentiment on
hopes China, the world's top metals consumer, would edge towards more pro-growth
policies.
Although the equity market was expected to witness a relief rally, concerns
about the political situation in Greece, which heads towards bankruptcy, and
that the euro zone debt crisis could engulf other nations such as Italy and
Spain kept investors jittery.
In Greece, a plan for former European Central Bank vice-president Lucas
Papademos to lead a government of national unity has run into trouble, party
sources said. The new government would have the task to secure a
130-billion-euro ($180-billion) bailout from the euro zone.
Christine Lagarde, the head of the International Monetary Fund, warned
Europe's debt crisis risked plunging the global economy into a "lost decade" and
said it was up to rich nations to shoulder the burden of restoring growth and
confidence.

MARKET SNAPSHOT AT 0735 GMT
LAST PCT CHG NET CHG
S&P 500 1,275.92 1.17 % 14.8
NIKKEI 8,755.44 1.15 % 99.93
MSCI ASIA EX-JP 0.69 % 3.42
EUR/USD 1.3784 -0.34 % -0.0047
USD/JPY 77.66 -0.04 % -0.0300
10-YR US TSY YLD 2.061 -- -0.02
10-YR BUND YLD 1.842 -- 0.04
SPOT GOLD $1,787.00 0.12 % $2.15
US CRUDE $96.88 0.08 % 0.08

* GLOBAL MARKETS-Asian shares rally on Italy reform hopes
* US STOCKS-Banks lead Wall St gains as Berlusconi eyes exit
* Nikkei climbs over 1 pct, Italy PM eyes exit
* FOREX-Euro rally fights resistance but outlook still grim
* TREASURIES-Bonds edge up in Asia amid euro zone uncertainty
* Brent rises above $115 on China inflation data
* PRECIOUS-Gold edges up on Italy's debt worries
* METALS-Copper up on China data, Berlusconi's exit pledge

COMPANY NEWS
E.ON
The company reported nine-month adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) of 6.6 billion euros ($9.1 billion),
beating the 6.5 billion average forecast in a Reuters poll.

ANHEUSER-BUSCH INBEV
The world's largest brewer increased profits by more than expected in the
third quarter after charging more for the same amount of beer.

HANNOVER RE
The company beat expectations with net profit of 163.2 million euros ($225
million) in the third quarter, after investment income declined by less than
expected in the euro debt crisis.

CARLSBERG
The Danish brewer reported a 21 percent fall in third-quarter profit,
steeper than expected, hurt by a contraction of its key Russian market and
rising raw materials costs.

J SAINSBURY
New stores and demand for online and convenience shopping helped British
grocer J Sainsbury to meet forecasts with a rise in first-half profit in a tough
trading environment that the group said was set to continue.

HENKEL
The maker of Pritt stick and Schwarzkopf hair products again slightly lifted
its forecast for 2011 sales growth, as higher prices for detergents and emerging
market growth offset rising raw material prices.

DEUTSCHE POST
Deutsche Post reported third-quarter EBIT of 646 million euros, beating the
586 million average forecast in a Reuters poll. Poll:

DEUTSCHE BANK
The precedent set by the restructuring of Greek sovereign debt risks leaving
banks more exposed to future financial crises of other countries, Deutsche Bank
Chief Executive Josef Ackermann said in an interview with the Financial Times on
Wednesday.

SODEXO
The French catering and vouchers group said it was cautious about the
increasingly uncertain economic climate in developed countries, while strong
emerging markets and a recent acquisition in Brazil would underpin revenue and
profit growth in 2011-12.

SANOFI
The French drugmaker told staff representatives that restructuring its
research and development operations could entail 555 job cuts in Europe and
about 900 in the United States, a CGT union representatives told Reuters. A
Sanofi spokesman declined to comment on the figures cited by the union.

MICHELIN
The French tyre maker, which is the second largest shareholder in Hankook
Tire , exited the South Korean firm in a deal worth 623 billion won
($555.7 million) and seen as ending the companies' eight-year partnership.

EADS
Republic Airways Holdings Inc confirmed an order for 80 Airbus
A320neo family aircraft.
Sales of a revamped Airbus jetliner topped 1,000 units worth $100 billion as
the European planemaker widened its lead over Boeing in a race that shows
few signs of ending because of recession.