European Factors -- Shares set to fall on U.S. recession fears

(Adds company items, futures, updates market snapshot)

PARIS, Jan 7 (Reuters) - European stocks were set to drop on Monday, adding
to the previous session's sharp fall as investors fret about recession risks for
the U.S. economy in the wake of disappointing U.S. December jobs data.

By 0725 GMT, DAX futures FDXc1 were down 0.1 percent and both CAC 40
futures FCEc1 and Euro STOXX futures STXEc1 lost 0.3 percent.

On Friday, data showed U.S. monthly jobs growth was the worst in over four
years and the unemployment rate hit a two-year high in December, sparking new
worries the U.S. economy may slip into recession.
The weak jobs report hammered stocks on Friday, with the FTSEurofirst 300
index .FTEU3 of top European shares ending down 1.8 percent at 1,457.6 points,
its lowest close since late November. U.S. stocks also tumbled.

The FTSEurofirst 300 has lost 3.3 percent so far this year.

"Poor payroll figures out of the U.S. spurred fears of an impending
recession, not helped by the ongoing demise of the housing market. The markets
are looking for a 50 basis point cut in the Fed overnight cash rate when the
central bank next meet at the end of the month," Oliver Stevens, head of dealing
at IG Markets, wrote in a note.

----------------------MARKET SNAPSHOT AT 0725 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,411.63 -2.46 % -35.53

NIKKEI .N225 14,500.55 -1.3 % -190.86

MSCI ASIA EX-JP .MIASJ0000PUS 601.72 -2.21 % -13.58

EUR/USD EUR= 1.4705 -0.26 % -0.0039

USD/JPY JPY= 109.11 0.56 % 0.6100

10-YR US TSY YLD US10YT=RR 3.892 -- 0.02

10-YR BUND YLD EU10YT=RR 4.141 -- 0.01

SPOT GOLD XAU= $856.20 -0.40 % -$3.40

BRENT CRUDE LCOc1 $96.45 -0.31 % -$0.3

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

* U.S. stocks sink as jobs data stirs recession fears [ID:nL05325285]

* Nikkei slips 1.3 pct to 17-month low on U.S. worry [ID:nTKU002966]

* Asian stocks hit 2-wk low on US economy fears [ID:nHKG2487]

* Dollar claws up after hit from poor U.S. jobs data [ID:nT240033]

* Oil extends retreat on U.S. economic worries [ID:nSYD79747]

* Bonds fall back in Asia after jump on weak job [ID:nT198601]

* Gold falls on oil, concerns over U.S. economy [ID:nT89919]

COMPANY ITEMS:

ANGLO-AMERICAN (AAL.L)

The mining group has postponed plans to sell its 3 billion pound ($5.9
billion) Tarmac road-covering business until turmoil on capital markets eases,
Britain's Sunday Telegraph reported.

For more on this, double click on:[ID:nL06502819]

SMITH & NEPHEW (SN.L)

The medical equipment maker has been asked to submit confidential documents
to Britain's Serious Fraud Office as part of a wide-ranging probe following
allegations bribes were paid to win contracts in Iraq.

For more on this, double click on: [ID:nL06528481]

DAIMLER (DAIGn.DE)

Daimler will buy 26 percent of India's Sutlej Motors, the Business Standard
said in an unsourced report on Monday, adding the German firm's proposal had
been cleared by the Foreign Investment Promotion Board.

For more on this, double click on: [ID:nBOM65962]

SIEMENS (SIEGn.DE)

Siemens Chief Executive Peter Loescher wants to come down hard on employees
responsible for a corruption scandal that has rocked the company, Handelsblatt
newspaper reported, citing a letter sent by the CEO to managers.

For more on this, double click on: [ID:nL06511153]

IKB (IKBG.DE)

Troubled German bank IKB denied a report in Germany's Focus magazine that it
faced the threat of further writedowns on its own loan portfolio in addition to
the impact of the U.S. subprime crisis.

For more on this, double click on: [ID:nL05316750]

HEINEKEN (HEIN.AS)

Shareholder pressure is growing for Scottish & Newcastle SCTN.L to look
more favourably on even a small improvement to the 750 pence a share offer from
Heineken and Carlsberg (CARLb.CO), the Financial Times reports, quoting
investors.

For more, double click on [HEIN.AS-LEN-RTRS]

ASM INTERNATIONAL (ASMI.AS)

Fursa Alternative Strategies LLC, formerly named Mellon HBV Alternative
Strategies, has boosted its stake in ASMI to 10.31 percent, according to a
filing with regulator AFM published over the weekend. The previous filing dates
from November 2006 when Fursa reported a 7.27 percent stake.

For more, double click on [ASMI.AS-LEN-RTRS]

EADS (EAD.DE)

The A400M military transport aircraft faces fresh problems that may delay
its first flight, Germany's WirtschaftsWoche magazine reported, citing a
high-ranking manager at EADS, which leads the project through unit Airbus
Military. For more on this, double click on: [ID:nL05563748]

UNICREDIT (CRDI.MI)

The bank owned less than 2 percent of car-maker Fiat (FIA.MI) as of Dec. 17,
according to Consob data released on Friday. UniCredit had already announced its
intention to exit Fiat.

RENAULT (RENA.PA)

India's Mahindra & Mahindra Ltd (MAHM.BO) may pull out of a joint venture
with Renault SA and Nissan Motor Co (7201.T) to build a 40-billion-rupee ($1
billion) manufacturing plant in India, media reports said.

CLOSE BROTHERS (CBRO.L)

UK investment bank Close Brothers Group, which has rejected takeover
approaches from rival Cenkos Securities (CNKS.L) and Iceland's Landsbanki
LAIS.IC, met on Friday with private equity group Blackstone and may receive a
rival bid, sources close to the matter said.

For a full story, click on [ID:nL05333941]

NORTHERN ROCK NRK.L

Goldman Sachs is close to completing a 15 billion pound ($29.5 billion)
financing package to be used by suitors for UK lender Northern Rock, the Sunday
Times reported, adding details may be unveiled this week.

For a full story, click on [ID:nL06262592]

ENI (ENI.MI), TOTAL (TOTF.PA)

Kazak chairman Nursultan Nazarbayev will meet on Jan. 11 the heads of the
oil groups involved in the Kashagan oil field project with the aim of clinching
a final deal, Il Messaggero said on Sunday, quoting Total head Christophe de
Margerie.

(Reporting by Blaise Robinson)