European Factors -- Shares seen higher; oils, banks, techs eyed

(Updates to include latest story on Japanese stocks)

FRANKFURT, May 16 (Reuters) - European shares looked set to start higher on
Friday, tracking gains in U.S. and most Asian markets, with heavyweight energy
stocks in focus as crude clawed back toward $125 a barrel.

At 0642 GMT, June Euro Stoxx50 futures STXEM8 rose 0.8 percent, while June
DAX futures FDXM8 gained 0.6 percent and May CAC-40 futures FCEc1 were up
0.7 percent.

European technology shares may benefit from a rally in U.S. tech stocks
overnight helped by a battle to control Yahoo (YHOO.O: Quote, Profile, Research) and by gains in chip
maker Intel Corp (INTC.O: Quote, Profile, Research) after Lehman Brothers raised its price target on the
stock, citing strength in notebooks and servers.

Investors will also keep a close eye on financials following a report in the
Financial Times that said Britain's biggest banks were preparing to swap between
80 billion and 90 billion pounds ($155-175 billion) of mortgage-backed assets
for Bank of England Treasury bills, nearly twice what the central bank envisaged
when it unveiled its scheme to unblock the frozen bank-lending market.

U.S. crude CLc1 for June delivery rose 62 cents to $124.74 a barrel by
0549 GMT, still below Tuesday's all-time peak of $126.98.

A pull-back in oil prices earlier had lifted U.S. and Asian stocks, easing
concern about inflation.

Later in the day, U.S. April housing starts and the preliminary reading for
May on the consumer sentiment index from the Reuters/University of Michigan
Surveys of Consumers are due at 1230 GMT and 1355 GMT respectively.

----------------------MARKET SNAPSHOT AT 0620 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,423.57 1.06 % 14.91

NIKKEI .N225 14,219.48 -0.23 % -32.26

MSCI ASIA EX-JP .MIASJ0000PUS 572.34 0.83 % 4.71

EUR/USD <EUR=> 1.5475 0.23 % 0.0036

USD/JPY <JPY=> 104.62 -0.07 % -0.0700

10-YR US TSY YLD <US10YT=RR> 3.843 -- 0.02

10-YR BUND YLD <EU10YT=RR> 4.203 -- 0.00

SPOT GOLD <XAU=> $881.20 0.09 % $0.75

US CRUDE CLc1 $125.00 0.71 % 0.88

-----------------------------------------------------------------------

* Oil's fall, techs' gain drive U.S. stocks higher [ID:nN15341157]
* Nikkei snaps winning streak, shippers steam higher [ID:nT223719]

* Asian stocks rise as dollar holds its ground [ID:nSP5173]

* Dollar dithers vs yen, off two-month high [ID:nT166590]

* Oil near $125 on heating oil supply strain [ID:nSP209788]

* Gold edges down in Asia as dollar weighs [ID:nT339472]

COMPANY NEWS

BRITISH AIRWAYS (BAY.L: Quote, Profile, Research)

British Airways said on Friday it was reviewing capacity, costs and network
against the backdrop of economic pressures and high fuel prices, as it met
forecasts with a 45 percent rise in annual profit on Friday. [ID:nWLB1732]

Related news [BAY.L-E]

BHP BILLITON (BLT.L: Quote, Profile, Research)

Shares in the world's largest miner rose more than 4 percent to a record in
Australia on Friday amid fresh speculation that Chinese interests were looking
to build a stake in the group. [ID:nSYD115459]

Its shares were seen up as much as 1.2 percent in London.

Related news [BLT.L-E]

ROYAL BANK OF SCOTLAND (RBS.L: Quote, Profile, Research)

Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research) has pulled out of the
bidding in Royal Bank of Scotland's 7 billion pound auction of its UK insurance
business, the Financial Times reported on Friday. [ID:nL16213154]

Related news [RBS.L-E]

CARLSBERG (CARLb.CO: Quote, Profile, Research)

The Danish brewer is launching a 30.5 billion crown rights issue to repay
part of the debt financing used to buy UK-based rival Scottish & Newcastle, the
company announced in a statement late on Thursday. [ID:nL1641817]

Related news [CARLb.CO-E]

PRUDENTIAL (PRU.L: Quote, Profile, Research)

The UK insurer is eyeing Equitable Life's [EQL.UL] 7 billion pounds
with-profit fund, according to the Financial Times newspaper. [ID:nL16928525]

Related news [PRU.L-E]

BELGACOM (BCOM.BR: Quote, Profile, Research)

Belgium's dominant telecom operator reported a worse than expected drop in
first-quarter sales on Friday, but reiterated its financial targets for the
whole of 2008. [ID:nWEB5498]

Related news [BCOM.BR-E]

E.ON (EONG.DE: Quote, Profile, Research), NATIONAL GRID (NG.L: Quote, Profile, Research)

National Grid would look at a move into Germany by buying E.ON's (EONG.DE: Quote, Profile, Research)
electricity transmission business, National Grid's chief executive said, but
added that there was a "lot to do" before it could think of making an offer, the
Financial Times reported.

BALOISE (BALN.VX: Quote, Profile, Research)

The Swiss insurer reported a 6.7-percent rise in business for the first
quarter on Thursday and lower payouts from insurance claims. [ID:nL15862210]

Related news [BALN.VX-E]

SIEMENS (SIEGn.DE: Quote, Profile, Research)

Siemens plans to remain involved in its loss-making Siemens Enterprise
Networks unit even after it is sold, either by maintaining a stake in the unit
or, if it is sold to a strategic investor, by buying a stake in that investor,
an industry source familiar with the situation told Reuters on Thursday.

For related news, double click on [SIEGn.DE-E]

INFINEON (IFXGn.DE: Quote, Profile, Research)

Infineon Chief Executive Wolfgang Ziebart will step down at the end of the
month, Boersen-Zeitung reported.

For related news, double click on [IFXGn.DE-E]

BRITISH ENERGY (BGY.L: Quote, Profile, Research)

The British nuclear power generator said on Friday it had received a range
of takeover proposals, including some priced above Thursday's closing share
price. [ID:nWLB1742]

Related news [BGY.L-E]

AUTOMAKERS

Europeans continued to show only tepid interest in new cars as Italians, the
continent's second-biggest car buyers, stayed away from showrooms amid a
weakening economic outlook and a halt in government incentives. [ID:nWEB5509]

Related news [AUT-E]

(Reporting by Eva Kuehnen)