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- Asian markets tense before Fed; Nikkei outperforms
UPDATE 1-European Factors to Watch - Shares seen up as Spain tackles deficit
By Francesco Canepa LONDON, Sept 28 (Reuters) - European stocks were set to open higher on Friday as investors welcomed Spain's efforts to tackle its public deficit through new austerity measures, which many see as paving the way for international aid. At 0629 GMT, futures for the Euro STOXX 50 index were up 0.9 percent, while contracts for Germany's DAX and France's CAC were up 0.7 percent. Financial spreadbetters expected Britain's FTSE 100 to open 25 to 27 points higher, or as much as 0.5 percent. Madrid unveiled a crisis budget on Thursday mostly based on spending cuts, and announced a timetable for economic reforms that was welcomed by EU Economic and Monetary Affairs Commissioner Olli Rehn. The budget goes to parliament on Saturday and debates could last weeks. "I think we're going to see bullish European markets at the open (after the Spanish budget)," a trader said. "Also, U.S. markets rose overnight on rumours of aggressive Chinese policies to revive the economy. This chatter has triggered a rebound that has helped all sectors that underperformed in the past two weeks, such as tech, financials and materials." The U.S. S&P 500 snapped a five-day string of declines in a broad-based rally on Thursday, boosted by the Spanish budget and speculation that China would take steps to spur its slowing economy. The euro zone blue-chip Euro STOXX 50 index, up 0.3 percent on Thursday, has fallen 8.8 percent from a 6-month high hit in mid-September, as resurfacing concerns about the European economy and uncertainty about Spain's fiscal situation curbed a two-month rally, which had been fuelled by expectations of central bank interventions. The Spanish government is talking to EU authorities about the terms of a possible aid package that would trigger an European Central Bank bond-buying programme and ease Spain's unsustainable funding costs. "With the Spanish budget paving the way for an official bailout request... concern about the euro zone crisis has eased," Credit Agricole said in a note. "Overall, some resilience is seen for the moment and markets are likely to consolidate with an upward bias at the month and quarter end." Spain was set to remain in focus on Friday as Spanish banks were set to learn from an audit the extent of the damage from the collapse of a real estate boom and Moody's was due to publish a review of the country's credit rating, possibly downgrading it to junk status. The European Union's Statistics Office was due to publish its inflation estimate for September at 0900 GMT. It was expected to show a 2.5 percent increase, slightly down from 2.6 percent in August. -------------------------------------------------------------------------------- MARKET SNAPSHOT AT 629 GMT LAST PCT CHG NET CHG S&P 500 1,447. 0.96 % 13.83 5 NIKKEI 8,870. -0.89 % -79.71 6 MSCI ASIA <.MIASJ000 0.95 % 4.87 EX-JP PUS> EUR/USD 1.2932 0.15 % 0.0019 USD/JPY 77.50 -0.1 % -0.080 10-YR US <US10YT=RR 1.640 -- -0.02 TSY YLD 10-YR BUND <EU10YT=RR 1.464 -- 0.01 YLD SPOT GOLD $1,782 0.27 % $4.82 11 US CRUDE $92.42 0.62 % 0.57 > Asian shares, commodities gain on relief over Spain > Wall St jumps as Spain moves toward reforms > Nikkei sags on China tensions > U.S. Treasuries fall as Spanish budget spurs risk taking > Euro bounces back from 2-week low after Spain budget > Gold hovers near 1-week high; Spain, oil support > Copper inches up on Spain relief > Brent holds above $112 as demand worries ease COMPANY NEWS EADS Airbus Chief Executive Fabrice Bregier said in an interview published on Thursday that it was essential to stick to an Oct. 10 deadline set by UK regulators for a plan for the merger of its parent with Britain's BAE Systems. Germany and France may seek a combined 27 percent stake in a company to be formed from a planned merger of European aerospace group EADS and British defence contractor BAE Systems, but Britain would be opposed, the Financial Times Deutschland said. Philippine Airlines has agreed to buy another $2.5 billion worth of jets from Airbus, its president said on Friday, bringing close to $10 billion its total orders from the aircraft manufacturer. Confirming growing demand for the world's largest airliner, a top executive of Emirates Airline said on Thursday the company would be willing to buy another 40 Airbus A380 jets, but that the fast-growing Dubai airport where the airline is based is short of room for them. THYSSENKRUPP Outokumpu's remedy proposal for European regulators is credit positive for ThyssenKrupp, Moody's Investors Service said on Thursday. The lengthening of the review process prolongs the time period during which ThyssenKrupp has to finance the negative cash flow from Inoxum. COMMERZBANK Commerzbank's global head of M&A advisory, Philipp Mohr, is joining boutique investment bank William Blair & Co, the U.S. advisory firm said on Thursday. VOLKSWAGEN Italian super sports car maker Lamborghini, which is owned by Volkswagen, is bracing for flat vehicle sales next year as the global economic slowdown weighs on luxury purchases in key markets including China. SCHNEIDER ELECTRIC An organization that regulates U.S. electric utilities is looking into a security breach at Telvent, a Calgary, Alberta-based maker of software that big energy companies use to manage production and distribution of electricity. Telvent is owned by the French engineering company. CREDIT SUISSE A former Credit Suisse trader accused by U.S. authorities over a $3 billion fraud involving subprime mortgage bonds said he would fight a U.S. extradition request when he appeared in a British court on Thursday. TRANSOCEAN The world's largest offshore rig contractor said on Thursday it was served with a preliminary injunction by a federal court in Brazil that would require the company's nine rigs operating in waters off the country to cease operations in 30 days. DIA Budget supermarket Dia has agreed to acquire the Spanish arm of the German drugstore chain Schlecker, which includes Schlecker's Portuguese operations, for 70.5 million euros, the group said on Friday. NOVO NORDISK Novo Nordisk, the world's biggest insulin producer, said its diabetes treatment Tresiba had been approved in Japan. VESTAS WIND SYSTEMS The ailing Danish wind turbine manufacturer sees declining turnover but is winning market share, the company's head of sales told daily Borsen. LUNDIN MINING The company is looking at making acquisitions to boost production, its chief executive, Paul Conibear, said in business daily Dagens Industri. He said that Lundin was looking for copper and zinc mines that produce 30,000 to 70,000 tonnes of metal per year in Europe, Canada, Mexico and South America, but not Russia. Lundin Mining, listed in both Toronto and Stockholm, has up to 4 billion Swedish crowns ($604 million) to spend on acquisition, the paper said. ORKLA The Norwegian conglomerate is selling its small power, property and investment unit Salvesen & Thams to a local consortium led by Orkla's former Chief Executive Bjoern Wiggen for 235.3 million Norwegian crowns ($41 million). BOLLORE, VIVENDI The French investment and industrial holding group plans to raise its stake in Vivendi to 5 percent, Chief Executive Vincent Bollore told Reuters on Thursday without giving a timeline.
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