Europe Factors to Watch-Shares set to dip; Iraq in focus

Mon Jun 16, 2014 2:50am EDT

PARIS, June 16 (Reuters) - European stocks were set to fall on Monday,
adding to last week's dip as mounting violence in Iraq prompts investors to
further book recent lofty gains.
    Alstom will be in focus on Monday after sources said Germany's
Siemens and Japan's Mitsubishi Heavy Industries are putting
the finishing touches on a joint offer for Alstom's turbine businesses.
 
    Also on the M&A front, the healthcare sector will be in the spotlight after
U.S. medical device maker Medtronic Inc said it agreed to buy
Dublin-based Covidien Plc for $42.9 billion. 
    The banking sector will be in the spotlight after ECB Governing Council
member Ewald Nowotny told a newspaper Stress tests being conducted on major
European banks before the European Central Bank takes on supervising them late
this year may end up being too tough. 
    BNP Paribas will be eyed after France's finance minister said on
Sunday that talks between BNP and U.S. authorities over a potential fine for the
bank for breaching U.S. sanctions had progressed towards a "more equitable"
level.
    At 0645 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were down 0.3-0.5
percent.
    On Sunday, Sunni insurgents in Iraq seized Tal Afar, a mainly ethnic Turkmen
city in northwestern Iraq after heavy fighting, solidifying their grip on the
north after a lightning offensive that threatens to dismember the country. 
 
    The situation in Iraq sent Brent crude rising above $113 per barrel to near
a nine-month high on Monday, fuelling concerns over a potential disruption to
oil exports from the second-largest OPEC producer. 
    The United States is considering holding discussions with Iran on ways to
push back Sunni militants in Iraq, a senior official said on Sunday, in what
would mark a major step in U.S. engagement with its longtime adversary.
 
    The FTSEurofirst 300 index of top European shares hit a 6-1/2 year
high last week while Germany's DAX hit a record high, but rising
violence in Iraq last week prompted investors to start booking profits late in
the week.
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0650 GMT:
 S&P 500                             1,936.16   0.31 %     6.05
 NIKKEI                              14933.29  -1.09 %  -164.55
 MSCI ASIA EX-JP                       491.01   0.01 %     0.04
 EUR/USD                               1.3544   0.01 %   0.0002
 USD/JPY                               101.77  -0.27 %  -0.2800
 10-YR US TSY YLD                       2.581       --    -0.02
 10-YR BUND YLD                         1.353       --    -0.02
 SPOT GOLD                          $1,283.50   0.55 %    $7.00
 US CRUDE                             $107.38   0.44 %     0.47
 
  > GLOBAL MARKETS-ASIAN SHARES DIP, OIL FIRMS AS MARKET EYES IRAQ 
  > US STOCKS-WALL ST EDGES UP ON INTEL BUT POSTS WEEKLY LOSS 
  > NIKKEI DROPS ON IRAQ WORRIES; CHIP-RELATED SHARES SURGE ON INTEL 
  > FOREX-DOLLAR DIPS VERSUS YEN, EURO REMAINS UNDER PRESSURE 
  > PRECIOUS-GOLD HITS 3-WEEK HIGH ON IRAQ; PLATINUM GROUP METALS UP 
  > METALS-METALS BUOYED AS IRAQ CONFLICT BOOSTS COMMODITY INDICES 
  > BRENT ABOVE $113, HOLDS NEAR 9-MTH TOP AS IRAQ VIOLENCE INTENSIFIES 
    
    COMPANY NEWS:
    
    ALSTOM, SIEMENS 
    Germany's Siemens and Japan's Mitsubishi Heavy Industries are
putting the finishing touches on a joint offer for Alstom's turbine businesses
that includes a cash element of roughly 9 billion euros ($12.25 billion),
sources close to the bidders said. Siemens is due to present an offer by Monday.
 
     Separately, Britain's Serious Fraud Office (SFO) is pursuing its
investigation of alleged corruption at Alstom, with the Attorney General giving
permission for the SFO to prosecute the company and former employees for alleged
overseas bribery if considered appropriate, the Financial Times reported on
Saturday. 
    
    HEALTHCARE TECH SECTOR
    U.S. medical device maker Medtronic Inc said it agreed to buy
Dublin-based Covidien Plc for $42.9 billion and shift its executive
headquarters to Ireland. 
    
    BNP 
    France's finance minister said on Sunday that talks between BNP Paribas and
U.S. authorities over a potential fine for the bank for breaching U.S. sanctions
had progressed towards a "more equitable" level. 
    
    CREDIT SUISSE 
BlackRock Inc. said Credit Suisse's guilty plea in a U.S. tax evasion
case does not affect its business relationship with the Swiss bank, the chief
executive of the world's biggest asset manager told a Swiss newspaper.
    
    AIRBUS, SAFRAN 
    Airbus Group and Safran are set to boost co-operation with a joint venture
in space launchers, aiming to galvanize Europe's competitive response to U.S.
low-cost rival SpaceX, people familiar with the matter said. 
    
    SANOFI 
    French drugmaker Sanofi said on Saturday it was teaming up with U.S. medical
device maker Medtronic in diabetes. 
    
    BAYER 
    OncoMed Pharmaceuticals Inc said it halted patient enrolment and
dosing in all ongoing early-stage trials of two of its experimental cancer drugs
over concerns of bone damage. The drugs are part of a collaboration with Bayer.
 
    
    RWE 
    Germany's Economy Ministry is investigating whether to block the sale of
RWE's oil and gas unit DEA to a group of investors led by Russian tycoon Mikhail
Fridman, a spokeswoman said on Sunday. 
    
    DEUTSCHE LUFTHANSA, RYANAIR, EASYJET 
    Lufthansa is considering creating a new low-cost platform within its
Eurowings regional carrier to compete against budget rivals like Ryanair 
and Easyjet, Der Spiegel magazine reported. 
    
    VOLKSWAGEN 
    Russia's slackening growth and weakening rouble are having a knock-on effect
for Volkswagen and Opel vehicle sales there, German magazine Der Spiegel
reported. 
    
    BANCA CARIGE 
    The mid-sized bank, which is launching an 800-million euro rights issue on
Monday to bolster its financial strength, said it may be need further
capital-boosting measures, particularly in view of a pan-European health check
of lenders. 
    
    ACTELION 
Actelion Ltd said its experimental heart and lung drug Selexipag met its primary
goal in a late-stage study, giving the Swiss biotech company a potential second
big seller to replenish its product pipeline.
    

 (Reporting by Blaise Robinson; Editing by Anupama Dwivedi and Alistair Smout)
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