Europe Factors-Shares set to fall sharply on Greece worries
(Adds detail, company news; updates snapshot table)
LONDON Oct 3 (Reuters) - European shares are set to fall sharply on Monday following their worst quarterly performance since late 2008, with investors seen shunning riskier assets after the Greek government's draft budget figures showed the country would miss a deficit target set just months ago.
Futures for the Euro STOXX 50 STXEc1, Germany's DAX FDXc1 and the French CAC 40 FCEc1 fell were down 2.5 to 2.9 percent. Financial spreadbetters earlier predicted Britain's FTSE 100 to fall as much as 2.2 percent.
"Following an already weak U.S. close on Friday, news over the weekend that Greece will fail to reach their required deficit goals is set to keep sentiment negative," said Jonathan Sudaria, dealer at Capital Spreads.
"Traders will be concerned that the bailout packages and strict austerity measures imposed on Greece are still failing to get the debt situation under control or spark any growth."
The 2012 draft budget approved by Greece's cabinet on Sunday predicted a deficit of 8.5 percent of gross domestic product (GDP) for 2011, well short of the 7.6 percent target.
Euro zone officials said the region's finance ministers will discuss ways to leverage their EFSF bailout fund on Monday and put pressure on Greece to implement agreed structural reforms to try to get its economy growing again.
Concerns have grown that debt-stricken Greece could default, which would severely hurt balance sheets of European banks and push the world into a new global financial crisis. Analysts said that a lack of agreement among European policymakers to solve the euro zone debt crisis is expected to keep European shares under pressure.
Investors' jitters grew after Germany's Finance Minister Wolfgang Schaeuble was quoted on Saturday ruling out a higher German contribution to the euro zone's rescue fund beyond the 211 billion euros approved by parliament last week.
The euro fell to an eight-month low and copper slipped more than 5 percent. On the other hand, safe-haven gold rose further on Monday.
Focus will continue to be on European banks , which have fallen 32 percent this year mainly on the euro zone debt crisis. Belgian and French finance ministers will meet on Monday to discuss ways to shore up the balance sheet of troubled financial services group Dexia , which has one of the largest exposures to Greece among non-Greek banks.
Credit Suisse was reviewing its cost base and investments in the light of a challenging business environment for the next two years, its chief executive for private banking in Asia said on Monday.
Resource-related stocks are expected to come under renewed pressure as crude oil prices CLc1 fell more than 2 percent, copper dropped 5.2 percent and aluminium dropped 1 percent.
The FTSEurofirst 300 index of top European shares closed 1.1 percent lower at 923.41 points on Friday. It declined nearly 17 percent in the third quarter, its worst quarterly drop since the end of 2008. U.S. shares fell 2.2 to 2.6 percent. Japan's Nikkei fell 1.8 percent.
On the macroeconomic front, focus will be on September's U.S. ISM survey and August construction spending numbers, both due at 1400 GMT.
* Stocks, euro fall, gold gains on Europe worries
* Wall St ends worst quarter since 2008 meltdown
* Nikkei drops 2.3 pct on European debt fears
* Treasuries gains tough after best qtr since 2008
* Euro hits 8-mth low as Greek woes deepen
* Gold gains, equities drop on Europe debt fears
* Copper falls for a fourth day; Shanghai shut
* Brent tumbles more than $1 on euro debt fears
DEUTSCHE BANK (DBKGn.DE), COMMERZBANK
Germany's second-biggest lender, Commerzbank, and larger rival Deutsche Bank are on a list of big lenders slated to face extra regulatory scrutiny, a financial source familiar with the situation said. Both banks are on a list of 28 Systemically Important Financial Institutions (SIFIs) considered "too big to fail" by the Basel Committee of international banking regulators, the source said.
GlaxoSmithKline is eyeing acquisitions worth as much as $2 billion in India, as the pharmaceutical firm attempts to cement its position in one of the world's fastest growing drug markets, the Times said.
Also, British scientists conducting early-stage research have found that a potential new drug from GlaxoSmithKline could treat mixed-lineage leukaemia(MLL) -- the most common form of leukaemia in babies.
Two thirds of French voters believe President Nicolas Sarkozy will lose next year's elections if he runs -- including more than half of his own party's supporters, a survey showed on Sunday.
Health insurer Blue Shield of California has decided not to pay for Roche Holding's drug Avastin to treat breast cancer after U.S. health advisers said it was not safe or clinically beneficial. For related news click on
Credit Suisse is reviewing its cost base and investments in the light of a challenging business environment for the next two years, its chief executive for private banking in Asia said on Monday. For related news click on
DEUTSCHE TELEKOM (DTEGn.DE)
AT&T Inc has asked a U.S. court to dismiss a Sprint Nextel case against AT&T's proposed $39 billion purchase of T-Mobile USA.
Several cities and local communities are interested in buying stakes in local energy supplier Suewag, which RWE is considering selling, German paper Frankfurter Allgemeine Zeitung reported, citing spokespeople for the communities. Related news
ROYAL DUTCH SHELL (RDSa.L)
Shell resumed tanker berthing operations at its Singapore refinery more than 48 hours after putting out a fire at the plant, a shipping source said on Sunday.
BMW dealerships in Germany will be asked to better segregate sales space between BMW and Mini cars, BMW Germany sales chief Karsten Engel told weekly auto industry publication Automobilwoche.
The chief of staff of former French Finance Minister Christine Lagarde has been chosen to become head of the main French airline unit of Air France-KLM as part of a management reshuffle at the carrier, newspaper La Tribune reported on Sunday.
French luxury goods maker Hermes sees no sign yet of affluent buyers tightening their purse strings in spite of a sombre global economic outlook, the head of the brand said on Sunday at Paris Fashion Week.
Accor SA, Europe's largest hotel group, said on Friday it signed a franchise deal in the United Kingdom with Jupiter Hotels, the new owners of the former debt-ridden Jarvis hotels chain, to step up its presence there. (Reporting by Atul Prakash)
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