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Italy - Factors to watch on January 8

The following factors could affect Italian markets on Thursday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

For a complete list of diary events in Italy please click on IT/DIA.

POLITICS

The European Commission has agreed to suspend the carbon border levy for imports of fertilisers, French Agriculture Minister Annie Genevard said on Wednesday.

ECONOMY

ISTAT releases November unemployment rate data (0900 GMT).

(*) The European Commission is set to withdraw the infringement procedure over Italy's golden power legislation, newspaper MF reported on Thursday citing diplomatic sources. The decision would follow Rome's plan to review its special veto powers in significant M&A deals, a move made to appease EU authorities.

(*) Italy wants a stricter threshold for the suspension of imports under the planned Mercosur trade agreement, its Agriculture Minister Francesco Lollobrigida told Il Sole 24 Ore  in an interview published on Thursday, ahead of an EU vote on the treaty where Rome's stance could prove decisive.

DEBT

Italy's Treasury said on Wednesday it had hired banks to sell a dual tranche issue of a new 7-year BTP bond due on March 15, 2033 and a top up of a Green BTP note maturing April 30, 2046 via syndication.

The Treasury on Thursday will sell 8.0 billion euros in 12-month bills at auction on Jan 9.

It will also announce the sale of BTP bonds, with relative amounts to be auctioned on January 13.

COMPANIES

(*) PIRELLI PIRC.MI

Sinochem 600500.SS adviser BNP Paribas has garnered interest from certain funds to acquire a 15% stake in the tyremaker from the Chinese shareholder, in a move that would make their stake fall to around 10%, daily Il Messaggero reported on Thursday.

Among the different options considered to curb the Chinese sway over Pirelli, sources close to Sinochem have ruled out both a sale of the entire stake - as there are no potential buyers at the moment - and an accelerated bookbuilding on part of the stake - as it would be at a  discount, newspaper La Stampa reported on Thursday.

(*) LAZIO LAZI.MI

The Rome-based team drew 2-2 against Fiorentina at the Stadio Olimpico on Wednesday.

DIARY

Rome, 'Question time' session at Senate with Economy Minister Giancarlo Giorgetti, Interior Minister Matteo Piantedosi, Defence Minister Guido Crosetto (1400 GMT).

((Milan newsroom, e-mail: reutersitaly@thomsonreuters.com))

For Italian market data and news, click on codes in
brackets:

20 biggest gainers (in percentage).............PG.MI

20 biggest losers (in percentage)..............PL.MI

FTSE IT allshare index .FTITLMS

FTSE Mib index........ .FTMIB

FTSE Allstars index... .FTSTAR

FTSE Mid Cap index.... .FTITMC

Block trades.......... .BLK.MI

Stories on Italy...... IT-LEN

For pan-European market data and news, click on codes in
 brackets:

  European Equities speed guide...................EUR/EQUITY

  FTSEurofirst 300 index...............................FTEU3

  DJ STOXX index.......................................STOXX

  Top 10 STOXX sectors............................PGL.STOXXS

  Top 10 EUROSTOXX sectors.......................PGL.STOXXES

  Top 10 Eurofirst 300 sectors....................PGL.FTEU3S

  Top 25 European pct gainers........................PG.PEUR

  Top 25 European pct losers.........................PL.PEUR

  Main stock markets:

  Dow Jones................DJI  Wall Street report ......N

  Nikkei 225..............N225  Tokyo report.............T

  FTSE 100................FTSE  London report............L

  Xetra DAX..............GDAXI  Frankfurt market stories.F

  CAC-40..................FCHI  Paris market stories....PA

  World Indices.....................................0#.INDEX

  Reuters survey of world bourse outlook.........EQUITYPOLL1

  Western European IPO diary..........................WEUIPO

  European Asset Allocation........................EUR/ASSET

  Reuters News at a Glance: Equities...............TOP/EQE

  Main currency report:...............................FRX/

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