European Factors--Shares set to rise; eyes on U.S. jobs

(Adds details, company news; updates market snapshot)

PARIS, Jan 9 (Reuters) - European equities were set to rise on Friday,
reversing a two-session losing streak, helped by news that U.S. bank Citigroup
(C.N) agreed to support legislation aimed at stemming home loan foreclosures.

But gains could be limited ahead of key U.S. monthly jobs data and the
unemployment rate. The United States is expected to have shed 550,000 jobs in
December, making it the worst single month of job losses in 34 years, while the
unemployment rate is expected to rise to a 15-year high of 7.0 percent.

"The payrolls will be in focus today. But the real test for stocks will be
the coming earnings season. Results will be disappointing, and that could weigh
on equities, which had a strong start of the year," said Jacques Henry, analyst
at Louis capital Markets.

A top Federal Reserve official said on Thursday the U.S. recession looked to
be longer and more severe than originally thought, but there were signs the
economy would improve in the second half of 2009.
"We are seeing businesses retrenching and unemployment rising," Boston
Federal Reserve Bank President Eric Rosengren told the Massachusetts Mortgage
Bankers Association's Annual Meeting.

At 0741 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were up between 0.3 and 0.5 percent, while
financial spreadbetters expect Britain's FTSE 100 .FTSE to open 10 to 15
points higher.

Citigroup's reported backing of legislation that would bring relief to
struggling U.S. borrowers brought on board the support of one of the largest
U.S. retail financial institutions -- seen as a key move in winning support for
the bill.

The utilities sector will be in the spotlight after Moscow agreed to
deployment of international monitors to oversee the transit of Russian gas to EU
states via Ukraine, clearing the way for the resumption of European gas
supplies.

European shares dropped on Thursday, led lower by banks and miners, as a
flurry of gloomy economic data raised worries about a deep global recession and
weak sales by the world's top retailer, Wal-Mart (WMT.N), hurt sentiment.

The FTSEurofirst 300 .FTEU3 index of top European shares, which tumbled 45
percent in 2008, is up 4.7 percent so far in 2009, and has gained 16 percent
since reaching a floor on Nov 21.

----------------------MARKET SNAPSHOT AT 0731 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 909.73 0.34 % 3.08

NIKKEI .N225 8,836.80 -0.45 % -39.62

MSCI ASIA EX-JP .MIASJ0000PUS 285.82 -1.37 % -3.98

EUR/USD EUR= 1.3696 -0.07 % -0.0010

USD/JPY JPY= 91.16 0.01 % 0.0100

10-YR US TSY YLD US10YT=RR 2.417 -- -0.03

10-YR BUND YLD EU10YT=RR 3.124 -- 0.00

SPOT GOLD XAU= $856.45 0.04 % $0.35

US CRUDE CLc1 $42.28 1.39 % 0.58

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

* Wall St up on expected foreclosure deal; Dow off [ID:nN089073]

* Asia stocks slip, dollar up ahead of U.S. jobs [ID:nSP47234]

* Nikkei dips, logs first weekly fall in a month [ID:nT336577]

* Dlr edges down vs yen on caution before jobs data [ID:nT300934]

* Oil rises above $42 on Saudi cuts, eyes US data [ID:nSP104411]

* TREASURIES-Steady in Asia before U.S. jobs data [ID:nT98138]

* Gold weaker as dollar firms, US jobs data eyed [ID:nT90984]

* METALS-Copper prices slip after 8 pct London surge [ID:nSP9549]
COMPANY NEWS:

NATIXIS (CNAT.PA)

France's Natixis could post losses of between 1.5 billion euros and 2
billion euros for 2008 and a further recapitalisation of the bank cannot be
ruled out, daily Les Echos reports. A spokeswoman for France's fourth-biggest
listed bank declined to comment on the report.

For more double click on [CNAT.PA-LEN-RTRS]

COMMERZBANK (CBKG.DE)

The German government will appoint two representatives to Commerzbank's
supervisory board after it agreed to become the bank's largest shareholder,
German business daily Handelsblatt reported, citing government sources.

For details, see: [CBKG.DE-LEN-RTRS]

BNP PARIBAS (BNPP.PA)

BNP Paribas expects to remain "comfortably" in profit in 2008 and 2009, its
chief executive said on Thursday. Baudoin Prot also told the BFM radio that the
French bank had won 200,000 new customers in 2008.

For details, see: [BNPP.PA-LEN-RTRS]

AIR FRANCE-KLM (AIRF.PA), ALITALIA AZPIa.MI, LUFTHANSA (LHAG.DE)

Italian Prime Minister Silvio Berlusconi said on Thursday talks between
Alitalia and Air France-KLM are at a very advanced stage, but if Lufthansa were
to make a good offer for the Italian carrier Alitalia would still consider it.

For more double click on [AIRF.PA]

SWISS LIFE (SLHN.VX)

Insurer Swiss Life said it has set at 30 euros ($40.67) a share the cash
compensation for the squeeze out of remaining shareholders in German financial
adviser AWD (AWDG.DE). The cost of the squeeze out amounts to about 38 million
euros, Swiss Life said in a statement. For details, see:[ID:nL9486312]

SANOFI-AVENTIS (SASY.PA)

Sanofi-Aventis is studying the possibility of making a takeover bid for
Dutch vaccine maker Crucell NV (CRCL.AS), Les Echos reported. Crucell on
Wednesday said it was in the early stages of friendly merger talks with U.S.
drugmaker Wyeth (WYE.N). A Sanofi-Aventis spokesman said on Friday he had no
comment to make on the report.

RIO TINTO (RIO.L), BHP BILLITON (BLT.L)

Rio Tinto (RIO.AX)(RIO.L) will cut coking coal production as demand from
Asian steel mills weakens amid the global slowdown, though rival BHP Billiton is
still to decide whether cuts are needed.

For details, see: [ID:nSYD425811]

PREMIERE (PREGn.DE)

Premiere will issue new shares at 3.76 euros apiece in the first of two
planned capital hikes to overhaul its finances.

For details, see: [IDn:nL8121073]

(Reporting by Blaise Robinson; Editing by Jon Loades-Carter)