European Factors to Watch-Shares seen up, focus on Greece and China

  • Reuters
  • Stock Market News
European Factors to Watch-Shares seen up, focus on Greece and China
Credit: © Reuters.

(Updates futures prices, adds company news)

LONDON, July 8 (Reuters) - European shares headed for a higher open on Wednesday, mirroring gains on Wall Street, after euro zone members gave Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans.

Under a timetable agreed by the 19 leaders of the common currency area, Greece will submit on Wednesday a formal request for a two-year loan programme, with a first list of reform commitments to be spelled out in greater detail on Thursday. French President Francois Hollande said the European Central Bank would ensure that Greek banks had the minimum necessary liquidity to stay afloat until Sunday. ID:nL8N0ZN0LW

"The Europeans last night set the framework around which potential progress can be achieved over the next few days. Whether the Greek side is prepared to accept this remains an open question," Deutsche Bank (XETRA: DBKGn ) said in a note. "The future of Greece's position in the euro zone is likely to be decided by the end of the week."

Futures for the Euro STOXX 50 index STXEc1 , Germany's DAX FDXc1 , France's CAC FCEc1 and Britain's FTSE 100 FFIc1 were 0.2 to 0.6 percent higher by 0609 GMT.

The pan-European FTSEurofirst 300 .FTEU3 closed 1.6 percent lower in the previous session, while the euro zone's blue-chip Euro STOXX 50 index .STOXX50E fell 2.1 percent.

However, U.S. stocks ended higher after a choppy session on Tuesday, as a rebound in U.S. oil prices helped offset concerns about a slowdown in China and the Greek debt crisis. .N

Commodity stocks will be in focus after Asian shares slipped to a 1-1/2-year low on Wednesday as Chinese stocks struggled to pull out of a tailspin. The drop in China extended a correction that has clipped 30 percent off Chinese shares since mid-June, threatening a new blow to the country's already slowing economy despite a slew of market support steps from Beijing. MKTS/GLOB

In Britain, Finance Minister George Osborne, fresh from May's election victory, will say later in the day how he plans to reshape the economy by chopping welfare spending, easing the tax bill for workers and tackling some of the biggest challenges facing the recovery. ID:nL8N0ZN3QF

COMPANY NEWS

NOVARTIS NOVN VX>

The Swiss drugmaker won U.S. approval for its keenly awaited new heart failure drug Entresto earlier than expected, boosting hopes for a medicine tipped by analysts to reap billions of dollars in annual sales. NOVN.VX

SODEXO EXHO.PA

The French catering, facilities management and vouchers group lowered its annual sales goal on Wednesday, blaming a more difficult economic climate in Latin America and Europe, but maintained its profit growth goal. ID:nP6N0PZ00M

BARCLAYS BARC.L

Barclays said Chief Executive Antony Jenkins was to leave, with its chairman John McFarlane taking over executive duties, after the board decided new leadership was required to take the bank forward. ID:nFWN0ZN01S

SANOFI SASY.PA

Consumer watchdog Public Citizen said it petitioned U.S. health regulators to withdraw approval of Sanofi's Seprafilm and order a recall, saying the surgical implant has been associated with side effects including death. ID:nL3N0ZN4CS

Separately, the French pharmaceutical maker will carry out further clinical trials of two potential malaria treatments developed in a partnership with non-profit organisation Medicines for Malaria. ID:nFWN0ZN01J

SYNGENTA SYGN.VX

Monsanto MON.N believes offering a higher break-up fee to Syngenta if its $45 billion takeover approach does not go ahead would be counterproductive, Chief Executive Hugh Grant told a Swiss newspaper. SYGN.VX

FIAT FCHA.MI , UBS UBSG.VX

Ferrari SpA, the luxury car unit being spun off by Fiat Chrysler Automobiles FCAU.N FCHA.MI , has picked UBS Group AG UBSG.VX to help manage its initial public offering in New York this year, Bloomberg reported, citing people familiar with the matter. UBSG.VX

Separately, Fiat Chrysler and tractor manufacturer CNH Industrial CNHI.MI signed a four-year labour deal for workers in Italy on Tuesday, in a sign of improving relations with unions. ID:nL8N0ZN47F

VIVENDI VIV.PA

The board of Societe d'Edition de Canal Plus (SECP) is recommending shareholders tender their shares after Vivendi raised the price of its public tender offer to 8 euros from 7.60 euros. VIV.PA

GVC GVC.L , BWIN.PARTY BPTY.L

Sports betting and gaming company GVC Holdings Plc has offered to buy bigger rival Bwin.Party Digital Entertainment Plc for about 900 million pounds ($1.39 billion), the Financial Times reported on Tuesday. ID:nL3N0ZN5UP

INSURERS ALVG.DE MUVGn.DE HNRGn.DE

German insurers on Tuesday welcomed moves by the EU insurance watchdog to lower hurdles on infrastructure investments but said stronger action was needed to smooth the financing of projects such as roads, pipelines and wind farms. ID:nL8N0ZN424

BANKS

Chinese conglomerate Fosun International Ltd 0656.HK said on Wednesday it has offered to buy unlisted German bank Hauck & Aufhaeuser Privatbankiers KGaA (H&A) for up to 210 million euros ($231.17 million), aiming to boost its services in Europe. ID:nL3N0ZO03P

German property and public investment lender Deutsche Pfandbriefbank (PBB) NUEG.UL said it still aimed to float its shares on the stock exchange, undeterred by market turmoil, setting the price range for its initial public offering (IPO) at between 10.75 euros and 12.75 euros. ID:nL8N0ZN2W3

BOUYGUES BOUY.PA

A French court on Tuesday fined Bouygues Travaux Publics (TP), part of French construction group Bouygues BOUY.PA, 25,000 euros ($27,370) for employing undeclared foreign workers on the construction site of the EPR nuclear reactor at Flamanville in Normandy. ID:nL8N0ZN2Y2

RIO TINTO RIO.L

Rio Tinto said on Wednesday it was looking to lift its market share in North America and the Asia-Pacific region after revamping its Kitimat aluminium smelter in western Canada to produce nearly 50 percent more metal. ID:nL3N0ZO21X

IBERDROLA IBE.MC UIL.N

Spanish power group Iberdrola will set out a new proposal for its $3 billion takeover of U.S. firm UIL Holdings, the two companies said on Tuesday, as they seek to address objections raised by a Connecticut antitrust watchdog. ID:nL8N0ZN46H

ROYAL DUTCH SHELL RDSa.L

Royal Dutch Shell Plc's icebreaker vessel Fennica returned to the Dutch Harbor in Alaska with a small breech in the hull, raising concerns about the company's plan to resume drilling in the Arctic later this month. ID:nL3N0ZN55A

TULLOW OIL TLW.L

State-run Ghana Gas Company has shut down its Atuabo gas processing plant due to an unexpected disruption of gas supplies from the offshore Jubilee field operated by Tullow Oil , the plant's director said on Tuesday. ID:nL8N0ZN3YG

BARRY CALLEBAUT BARN.S

Swiss chocolate maker Barry Callebaut on Wednesday reported a 7.6 percent year-on-year rise in nine-month sales revenue and maintained its mid-term targets. ID:nL8N0ZO099

MAJOR U.S. COMPANIES REPORTING RESF/US :

Q2 2015 Alcoa Inc (NYSE: AA )

AA.N

MACROECONOMIC DATA/EVENTS (GMT) ECON :

1100 US Mortgage Market Index ------------------------------------------------------------------------------ > Asian shares plunge on China rout, yen rallies MKTS/GLOB

> Wall Street ends stronger after volatile session .N

> Nikkei falls to 7-wk low as China market rout fans economy concerns .T

> Greece worries push yields to five-week lows US/N

> Dollar and yen lifted, euro hands back gains as Asian stocks slide FRX/

> Gold struggles near 4-month low on lack of safe-haven bids GOL/

> London copper swings off 6-year low in volatile trade MET/L

> Oil prices fall as China share crisis worsens O/R

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