CORRECTED-Europe Factors to Watch-Shares set to dip ahead of manufacturing data
(Corrects incorrect market snapshot prices published earlier due to automation error) PARIS, Oct 1 (Reuters) - European stocks were set to fall on Wednesday, starting the fourth quarter in negative territory ahead of a batch of euro zone data expected to show relatively weak manufacturing activity. Shares in UK retailers will be in the spotlight again after J Sainsbury cut its full-year sales forecast as trading fell sharply in the second quarter, hurt by competition in Britain's grocery market which is growing at its slowest pace for more than 20 years. UK market leader Tesco, meanwhile, said Britain's financial watchdog had started a full investigation into the company in the wake of an accounting scandal which wiped 3 billion pounds ($4.86 billion) from the company's stock market value last month. At 0620 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. Investors were also concerned about unrest in Hong Kong, where thousands of pro-democracy protesters thronged the streets on Wednesday, some of them jeering National Day celebrations, with demonstrations spreading to a new area of the city. There was little sign of momentum flagging on the fifth day of the mass campaign, whose aim has been to occupy sections of the city and express fury at a Chinese decision to limit voters' choices in a 2017 leadership election. U.S. stocks slipped on Tuesday after U.S. consumer confidence fell in September for the first time in five months and home prices in July rose less than expected from a year earlier, underscoring the unsteady nature of U.S. growth. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0630 GMT: LAST PCT CHG NET CHG S&P 500 1,972.29 -0.28 % 5.51 NIKKEI 16082.25 -0.56 % -91.27 MSCI ASIA EX-JP 471.66 -0.27 % -1.26 EUR/USD 1.2620 -0.09 % -0.0011 USD/JPY 109.8 0.15 % 0.16 10-YR US TSY YLD 2.5054 -- -0.0057 10-YR BUND YLD 0.945 -- -0.001 SPOT GOLD $1,206.80 -0.16 % -$1.94 US CRUDE $91.54 0.42 % $0.38 > GLOBAL MARKETS-ASIAN SHARES SLIP, DOLLAR UP; HK UNREST EYED > US STOCKS-WALL ST ENDS DOWN FOR DAY, MONTH; INDEXES GAIN IN QTR > NIKKEI LITTLE CHANGED AFTER MIXED TANKAN DATA > TREASURIES-U.S. TREASURIES PRICES FALL; JOBS REPORT IN FOCUS > FOREX-DOLLAR SCALES 6-YR PEAK VS YEN, AUSSIE FALTERS ON WEAK DATA > GOLD STRUGGLES NEAR 9-MONTH LOW; PLATINUM HITS 5-YEAR TROUGH > COPPER SLIPS TO WEAKEST SINCE JUNE ON DOLLAR, CHINA HOUSING WORRIES > BRENT RISES ABOVE $95 AFTER CHINA PMI, BUT GLUT CAPS GAINS COMPANY NEWS: J SAINSBURY Britain's J Sainsbury cut its full-year sales forecast on Wednesday after trading fell sharply in the second quarter, dragged down by competition in a UK grocery market growing at its slowest pace for more than 20 years. TESCO Tesco said Britain's financial watchdog had started a full investigation into the company in the wake of an accounting scandal which wiped 3 billion pounds ($4.86 billion) from the British grocer's stock market value last month. UBS Swiss bank UBS must deposit a 1.1 billion-euro ($1.39 billion) guarantee on Tuesday to cover potential fines should it be found guilty of helping rich French customers avoid tax, a source familiar with the court procedure said. BANCA MONTE DEI PASCHI DI SIENA A shareholder in Italy's No. 3 lender said there was uncertainty over whether an ongoing health check of European banks would result in further capital requirements for the Siena-based bank. Monte dei Paschi carried out a 5 billion euro (6.3 billion US dollar) capital increase earlier this year to boost its chances of passing a Europe-wide stress test of lenders, but has not ruled out needing further capital once the results of the tests are made public. UNICREDIT The ECB's health check of European banks could force some lenders to rethink their strategy in central and eastern Europe and even withdraw from parts of the region, according to the European Bank for Reconstruction and Development's new regional banking expert. Austrian property group S Immo will submit a binding offer for UniCredit Bank Austria's 16.4 percent stake in compatriot CA Immobilien , it said on Tuesday as bidding for the stake heated up. GREEK BANKS Greece has won an important concession from the European Central Bank (ECB) that could help its top four lenders pass a landmark review of the euro zone's banking sector, three sources familiar with the process told Reuters. NOVARTIS A federal judge said Novartis AG must face a U.S. government lawsuit accusing the Swiss drugmaker of paying multimillion-dollar kickbacks, including a $9,750 dinner for three at a Japanese restaurant, to induce doctors to prescribe its drugs. ALLIANZ The insurance group's Pimco subsidiary intends to expand its equities business and there will be no difference in the firm's portfolio management since the departure of former chief investment officer Bill Gross, two top Pimco executives said on Tuesday. Separately, influential pension consultant Mercer Investment Management has downgraded its ratings on five Pimco funds, possibly triggering another wave of institutional investor outflows from the bond fund manager. AIR FRANCE-KLM Air France-KLM has been weakened by concessions made during this month's pilots strike on expansion plans at its low-cost arm but hopes to revisit the same ideas in the future, Chief Executive Alexandre de Juniac said. AIRBUS Chief Executive Fabrice Bregier told French daily Le Figaro the European planemaker was sticking to a target for its A380 superjumbo to break even next year. He added that he saw the potential for 10,000 orders for its re-engined A320neo family of single-aisle aircraft. EDF A decision on whether to extend Henri Proglio's mandate as head of the power company will be taken roughly within the next two weeks, a government source said. Another source familiar with the procedure said the nominations committee was due to meet on Oct. 16. ORANGE French state-owned fund Bpifrance said it was trimming its stake in the telecom group by 1.9 percent of the total capital. The 50 million shares will be priced between 11.60 euros and 11.90 euros each, a source familiar with the matter said. AMADEUS A vehicle owned by a pension fund of German airline Lufthansa is placing a 3 percent stake in Spanish travel technology company Amadeus. The shares would be sold at between 28.8 euros a share and 29.62 euros a share, a source said late on Tuesday. JULIUS BAER Swiss private bank Julius Baer is cooperating in a French investigation into suspected money laundering and tax fraud by a former client involved in the European carbon allowances market, a spokeswoman said, following French media reports. LLOYDS Investors are joining forces to sue Britain's biggest retail bank Lloyds and five former executives, alleging they were misled over an ill-fated deal in 2008 they say wiped about 6 billion pounds ($10 billion) off the total value of shares. BANCO DE SABADELL, BANCO POPULAR Portugal has begun sounding out Spanish banks on their interest in buying Novo Banco, the successor to the state-rescued Banco Espirito Santo (BES), several sources familiar with the talks said on Tuesday. Spain's mid-sized Sabadell and Popular, which already have offices and interests in neighbouring Portugal, were among those approached by the Bank of Portugal, the sources said. ANGLO AMERICAN The miner said on Tuesday that it obtained a Brazilian license to start operating its long-delayed, $14 billion Minas-Rio iron ore mining project, which is expected to enable its first shipment of ore by year-end. LUFTHANSA Five separate labour strikes by pilots have cost the airline a total double-digit million euro sum, on top of 60 million euros from a three-day strike last spring, Lufthansa's personnel chief Bettina Volkens told German daily Bild. (Reporting by Blaise Robinson; Editing by Francescp Canepa)
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