(Updates with futures, company news and snapshot table)
LONDON, Jan 14 (Reuters) - European stock index futures pointed to a higher
start on Wednesday after falling for five straight sessions, with a rise in
crude prices seen supporting oils shares, but worries about a tough earnings
season may cap gains.
At 0735 GMT, futures for the Eurostoxx 50 STXEc1, Germany's DAX FDXc1
and the French CAC 40 FCEc1 were up 0.5-0.8 percent. Financial spreadbetters
earlier called Britain's FTSE 100 .FTSE to open 26-31 points higher.
The FTSEurofirst 300 .FTEU3 index of top European shares closed 1.5
percent lower at 840.36 points in the previous session, having fallen as low as
828.68 points.
But Japan's Nikkei average eked out a 0.3 percent gain on Wednesday, buoyed
as exporters such as Sony Corp (6758.T) rebounded after falls the day before.
"Moderate gains in Asian markets overnight look set to be the impetus for a
break today of the five day losing streak," Martin Slaney, head of derivatives
at GFT said in a note.
"Saudi Arabia is talking output cuts and the miners look set for the best
start. We forecast a cautious open however due to the dampener on sentiment of
the latest banking sector job cuts."
Oil shares would be in focus, with crude prices rising 3.6 percent, as OPEC
kept up its talk of production cuts and a cold snap in the United States boosted
heating oil demand.
Investors braced for a European Central Bank rate decision on Thursday.
Markets expect the ECB to cut interest rates by 50 basis points from the current
2.5 percent, to help fight the economic downturn. [ECB/INT]
The market would also keep an eye on U.S. retail sales data for December,
which are expected to give a grim picture of private consumption.
In the U.S. market, the Dow .DJI fell for the fifth straight day on
Tuesday as investors fretted over what many expect will be a gloomy earnings
season, but the S&P 500 and Nasdaq ended higher as rising oil prices lifted
energy shares.
And Citigroup Inc (C.N), once the world's largest bank, agreed to merge its
Smith Barney brokerage with Morgan Stanley's (MS.N) wealth management unit on
Tuesday, and was expected to make further asset sales to raise capital and to
isolate toxic assets from the rest of the bank. [ID:nN13422148]
In the UK, the government launched a capital scheme to secure 20 billion
sterling of short-term bank lending to small businesses.
----------------------MARKET SNAPSHOT AT 0735 GMT----------------------
LAST PCT CHG NET CHG
S&P 500 .SPX 871.79 0.18 % 1.53
NIKKEI .N225 8,438.45 0.29 % 24.54
MSCI ASIA EX-JP .MIASJ0000PUS 280.27 1.34 % 3.70
EUR/USD EUR= 1.3284 0.72 % 0.0095
USD/JPY JPY= 89.69 0.29 % 0.2600
10-YR US TSY YLD US10YT=RR 2.325 -- 0.03
10-YR BUND YLD EU10YT=RR 3.022 -- 0.04
SPOT GOLD XAU= $825.70 0.57 % $4.65
US CRUDE CLc1 $38.93 3.04 % 1.15
* Nikkei up 0.3 pct as exporters rebound, Fujitsu jumps [ID:nECB01089]
* US STOCKS-Blue chips fall on corporate earnings gloom [ID:nN13420402]
* Euro rises vs dollar but gains limted before ECB [ID:nT181061]
* Treasuries-Prices up as stock weakness sustains [ID:nLE692429]
* Shanghai copper up, but support slipping [ID:nSP372775]
* Gold tracks euro higher, braces for ECB rate meeting [ID:nSP380143]
* Oil rises over 3 pct on U.S. weather, Saudi cuts [ID:nSYD377899]
* Asia shares recover; confidence still lacking [ID:nLE726148]
COMPANY NEWS
HSBC HOLDINGS (HSBA.L)
Europe's biggest bank, may have to raise as much as $30 billion in capital
and halve its dividend as earnings were likely to deteriorate more than
expected, Morgan Stanley analysts said on Tuesday. [ID:nN13416165]
RIO TINTO (RIO.L)
The miner said it would cut diamond output at its Argyle mine in Western
Australia and slow its underground mine development as part of its plan to slash
spending and cut net debt by $10 billion this year. [ID:nSYD420719]
BARCLAYS (BARC.L)
Barclays is cutting over 2,100 jobs across its investment banking and
investment management (IBIM) units, or about 7 percent of their staff, a person
familiar with the matter said on Tuesday. [ID:nLD703560]
DEUTSCHE BANK (DBKGn.DE), Deutsche Postbank (DPBGn.DE)
Deutsche Bank and Deutsche Post AG (DPWGn.DE) have agreed on new conditions
regarding the takeover of Deutsche Postbank, two sources familiar with the
negotiations said. Deutsche Post will take a stake of less than 10 percent in
Deutsche Bank for less than a year, the sources said. [ID:nLE157597]
RENAULT-NISSAN (RENA.PA)
Chrysler is in talks to sell key assets to Renault-Nissan and auto supplier
Magna as it rushes to restructure after taking $4 billion in U.S. government
loans, according to people with knowledge of the discussions. [ID:nN13428466]
ROYAL BANK OF SCOTLAND (RBS.L)
Royal Bank of Scotland sold its entire 4.3 percent stake in Bank of China,
or 10.8 billion shares, in a deal late on Tuesday worth about $2.37 billion. The
shares were sold at a discount of 7.6 percent to Bank of China's Tuesday closing
price of HK$1.85. [ID:nHKG162346]
BG GROUP (BG.L)
BG Group plans to invest up to $1.25 billion a year in Brazil over the next
four years as it develops its share of the world's most exciting oil discoveries
for many years, the Financial Times reports, citing the company's chief
executive. [ID:nLD617345]
SIEMENS (SIEGn.DE)
Siemens is gloomy on the outlook for the rest of this year and especially
2010, despite seeing operating earnings grow in its fiscal first quarter.
[ID:nLD106643]
LUFTHANSA (LHAG.DE)
Lufthansa sees no signs of economic recovery and the credit squeeze has put
mergers and acquisitions on hold, a German magazine quoted its CFO as saying.
[ID:nLD128709]
INFINEON (IFXGn.DE)
Prices for memory chips are showing the first signs of stabilising after
nearly two years of decline, market research institute DRAMeXchange reports,
with big production cutbacks since September seen as the main reason for the
change. Related news [IFXGn.DE-E]
AIR FRANCE KLM (AIRF.PA)
Airline is considering buying a stake in Scandinavian airline SAS (SAS.ST),
La Tribune reported. See [ID:LD581884].
GDF SUEZ (GSZ.PA)
French utility GDF Suez said on Tuesday it had issued a 4.25 billion euro
bond, which had been oversubscribed by more than 2 times. [ID:nWEA1501].
SACYR VALLEHERMOSO (SVO.MC), REPSOL (REP.MC)
The builder is negotiating the sale of its 20 percent stake in oil giant
Repsol to China's Sinopecn (0386.HK) at 26.7 euros per share, Cinco Dias
reported, citing unnamed sources familiar with the talks.
FIAT (FIA.MI)
The Italian group's truck maker Iveco will temporarily lay off about 1,200
workers next month as the global slowdown in the automotive sector deepens.
[ID:nLD487619]
INTESA SANPAOLO (ISP.MI), BNP PARIBAS (BNPP.PA)
BNP believes it can now exercise a call option to take its stake in consumer
credit group Findomestic to 51 percent from 50 percent, leaving Intesa Sanpaolo
unit Cassa di Risparmio di Firenze at 49 percent, MF said.
ROCHE (ROG.VX)
Banks close to Roche expect the Swiss drugmaker to raise its Genentech Inc
DNA.N bid soon, but say a press report that it has secured billions of dollars
of loans is premature.
(Reporting by Atul Prakash)
