Italian Stocks - Factors to watch on June 5

MILAN, June 5 (Reuters) - The following factors could affect
Italian markets on Friday.

Reuters has not verified the newspaper reports, and cannot
vouch for their accuracy. New items are marked with (*).

FIAT (FIA.MI)

A team of Fiat executives and engineers has been working at
Chrysler's Detroit-area headquarters this week, completing plans
to cut costs and ready the Fiat 500 small car for the U.S.
market, people with knowledge of the work said. [ID:nN04329686]

Automobile sales in Brazil rose 5.4 percent in May from
April, rebounding after a sharp decline the previous month, the
national automakers' association said on Thursday. Brazil is a
key Fiat market. [ID:nN04224049]

* ENEL (ENEI.MI)

The rights issue is going well with funds and retail
investors showing interest, Enel CFO Luigi Ferraris said in an
interview with Il Giornale. He said the issue offered investors
a return on invested capital of 7-8 percent. He reiterated that
Enel's strategy of overseas expansion was over and that debt at
the end of 2013 is seen around 40 billion euros.

A2A (A2.MI)

The CEO of A2A shareholder Alpiq (ALPH.S) told Il Sole 24
Ore he supports the chairman of the A2A management board
Giuliano Zuccoli, adding Alpiq is interested in nuclear power
projects in Italy.

The former chairman of A2A's supervisory board Renzo Capra
said in an interview with Corriere della Sera that Edison
(EDN.MI), controlled by A2A and EDF (EDF.PA), should be
reorganised with the French company taking control of the
upstream and production activity and A2A the grids. He said
A2A's stake in Edison was "a weight" but added now was not the
moment to sell it.

INTESA SANPAOLO (ISP.MI)

The suspension of the consultation pact between Generali
(GASI.MI) and Credit Agricole (CAGR.PA) has been filed with
stock market regulator Consob, several newspapers said, without
citing sources.

* TELECOM ITALIA

Small shareholder association Asati is ready to become a
pole of attraction for small investors if the Telco pact which
currently controls the telecoms group is not renewed, Il Sole 24
Ore said, citing a letter written to small shareholders by
Asati's chairman.

* BANKS

Most Italian banks now carry negative outlooks -- 27 out of
49 -- signalling a higher than one-third possibility of
downgrade for them in the next 12-18 months, Standard & Poor's
said on Friday. [nSPW5q407q]

Non-performing loans at Italian banks are increasing, Il
Sole 24 Ore said, citing Bank of Italy official Stefano Mieli.

* UNICREDIT (CRDI.MI)

The secretary general of banking foundation shareholder CRT
Angelo Miglietta hopes the bank will restart paying a cash
dividend in 2009, MF said, citing Miglietta.

PARMALAT (PLT.MI)

The chief executive of Parmalat Australia, David Lord, has
resigned, /the dairy company said in a statement. It said
Parmalat's strategy to strengthen its strong number-two position
in the market stayed unchanged. [ID:nBIA040e1]

* ENI (ENI.MI)

Goldman Sachs removes Eni from Buy List, cuts rating to
"neutral" from "buy"

* BANCA POPOLARE DI MILANO (PMII.MI)

Credit Suisse starts coverage with "neutral", target price
5.1 euros.

* BUZZI UNICEM (BZU.MI), ITALCEMENTI (ITAI.MI)

Goldman Sachs cuts Buzzi to "sell" from "neutral" and raises
Italcementi to "neutral" from "sell"