(Adds quotes, company items, details; updates snapshot)
PARIS, Sept 8 (Reuters) - European stocks were set to soar on Monday,
tracking sharp gains in Asia on a U.S. government bail out of top mortgage firms
Fannie Mae (FNM.N) (FNM.F) and Freddie Mac (FRE.N) (FRE.F).
By 0634 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were up between 3.2 percent and 4 percent,
while financial bookmakers, or spread betters, in London expected Britain's FTSE
100 .FTSE index to open up as much as 3.4 percent.
On Sunday, Washington seized control of the two mortgage finance companies
in an aggressive move to help the troubled U.S. housing market and economy.
The bailout, prompted by concerns over the firms' shrinking capital, was the
latest in a series of emergency steps taken by U.S. authorities to ease what is
now a year-long credit market crisis.
"The market is relieved by the rescue of Fannie and Freddie. There will be a
very big rebound at the opening, it could be around 4 percent," said Rik
Zwaneveld, trader at AFS Brokers, in Amsterdam.
"But when people will start looking at it a little closer, the sentiment
might change. We think that the news is not as good as what the headlines say."
Fannie Mae and Freddie Mac together own or guarantee almost half of the
United States $12 trillion in outstanding home mortgage debt. (For a TAKE A LOOK
on Fannie Mae and Freddie Mac bailout, double click on [ID:nN07463067])
The dollar EUR= fell against the euro on the news of the bailout, while on
the commodities front, crude oil futures CLc1 gained more than $2 to $108.69 a
barrel on Monday on growing worries over Hurricane Ike.
European shares tumbled last week, marking the biggest weekly decline in
more than five years, as weaker-than-expected monthly U.S. jobs figures dampened
sentiment and fuelled worries over the economy. The FTSEurofirst 300 .FTEU3
index of top European shares is down 25 percent so far this year.
----------------------MARKET SNAPSHOT AT 0631 GMT----------------------
LAST PCT CHG NET CHG
NIKKEI .N225 12,624.46 3.38 % 412.23
MSCI ASIA EX-JP .MIASJ0000PUS 431.83 5.24 % 21.51
EUR/USD EUR= 1.4353 -0.23 % -0.0033
USD/JPY JPY= 108.56 -0.38 % -0.4100
10-YR US TSY YLD US10YT=RR 3.825 -- 0.12
10-YR BUND YLD EU10YT=RR 4.113 -- 0.08
SPOT GOLD XAU= $813.30 1.31 % $10.50
US CRUDE CLc1 $108.02 1.69 % 1.79
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* Asia stocks rally on Fannie, Freddie bailout [ID:nSP311776]
* Nikkei ends up 3.4 pct, banks soar on U.S. bailout[ID:nTKG003027]
* Dollar dips vs euro after Freddie, Fannie bailout [ID:nT267034]
* TREASURIES-Tumble after takeover of Fannie, Freddie [ID:nT256099]
* Oil surges $2 to near $109 on hurricane threat [ID:nSYD295143]
* Gold climbs 1.4 pct on hopes of market stability [ID:nT7914]
COMPANY ITEMS:
BANKS
South Korea's top financial regulator on Monday called on state-owned Korea
Development Bank (KDB) to weigh carefully its potential investment in
subprime-hit U.S. bank Lehman Brothers LEH.N.
For details, see: [LEH.N-RTRS-LEN]
CREDIT AGRICOLE (CAGR.PA)
French investment bank Calyon could announce up to 1,200 job cuts as part of
a previously announced plan to slim down the business, French business newspaper
La Tribune reported on Monday. For details, see: [ID:nL8599128]
SWISS RE (RUKN.VX)
Swiss Re said it would focus on disciplined underwriting and that perserving
its margin was its main priority. Reinsurance players from around the world are
gathering in Monte Carlo to kick off crucial pricing discussions with their
insurance clients. For related news, click on [RUKN.VX-LEN-RTRS]
CREDIT SUISSE (CSGN.VX)
A former Credit Suisse broker pleaded not guilty on Friday to an indictment
accusing him of fraud in unauthorized dealings of auction-rate debt, securities
that are the focus of an industrywide probe.
For related news, click on [CSGN.VX-LEN-RTRS]
ENI (ENI.MI)
Italian oil giant Eni SpA (ENI.MI) said on Monday it had agreed to buy
Canada's First Calgary Petroleums Ltd FCP.TO in a deal worth C$923 million.
For details, see: [ID:nMAT008552]
FORTIS (FOR.BR)
Belgian-Dutch financial services group is busy talking with corporate banks
to award mandates for sale of certain parts of its business, Belgian daily De
Standaard says. Global custody, leveraged funds and trust activities are
possible items it will divest. For details, see:[ID:nL7481264]
COLONIAL (COL.MC), METROVACESA (MVC.MC)
The debt-laiden Spanish property companies have pulled out of a project to
develop the largest mall in Spain, due to a difficult market, Metrovacesa said
on Saturday. Separately, on Friday, a source told Reuters that Colonial is due
to meet creditors and shareholders this week to reach an 8.9 billion euro debt
restructuring deal. For the full story, click [ID:nL5148941]
FERROVIAL FER.MC
Spain's Ferrovial said on Saturday it had reached a deal to sell Belfast
City Airport for 132.5 million pounds, a price which would generate an estimated
capital gain of 85.6 million pounds. For more click on [ID:nL6679400]
ITV (ITV.L), MEDIASET (MS.MI)
Italy's biggest independent broadcaster, controlled by the family of Prime
Minister Silvio Berlusconi, is looking at a number of possible acquisitions,
including Britain's ITV (ITV.L), a board member said on Friday.
For details, see: [ID:nL5203917]
ELISA (ELI1V.HE)
Finland's third-largest telecoms operator, DNA [DNA.UL], is interested in
increasing its 5.3 percent stake in rival Elisa, daily Helsingin Sanomat
reported on Saturday, citing information obtained by the paper. Jan-Erik
Frostdahl, DNA's chief executive, declined to comment on the report.
For details, see:ID:[nL6295900]
(Reporting by Blaise Robinson)
