European Factors -- Shares set to dip on inflation worries

(Adds quotes, futures, company items; updates snapshot)

PARIS, June 13 (Reuters) - European equities were expected to fall on
Friday, reversing some of Thursday's gains, as inflation concerns remained high
in investors' minds ahead of U.S. consumer price data.

Oil was flat on Friday, within sight of last week's record price of $139.12
a barrel, which sparked a sell-off in equities worldwide.

At 0627 GMT, June futures for the Eurostoxx 50 STXEM8, Germany's DAX
FDXM8 and the French CAC 40 FCEM8 were down between 0.6 and 0.7 percent.

"The economic outlook is not strong, there is a lot of fear out there about
inflation and impending rate rises and so on, but the bad news has been in the
market for a few weeks now," said Ryan Kneale, a market analyst at
betsfortraders.com, a financial bookmaker.

"Clients ... are betting more and more for markets to fall and when you
reach a point of such low sentiment as you are now it does seem possible that
there will be a bounce."

European shares rose on Thursday after having fallen for six straight
sessions.
----------------------MARKET SNAPSHOT AT 0621 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,339.87 0.33 % 4.38

NIKKEI .N225 13,973.73 0.61 % 85.13

MSCI ASIA EX-JP .MIASJ0000PUS 509.80 -0.23 % -1.15

EUR/USD EUR= 1.5423 -0.17 % -0.0027

USD/JPY JPY= 107.89 0.01 % 0.0100

10-YR US TSY YLD US10YT=RR 4.223 -- 0.01

10-YR BUND YLD EU10YT=RR 4.605 -- -0.01

SPOT GOLD XAU= $871.60 0.43 % $3.70

US CRUDE CLc1 $136.71 -0.02 % -0.03

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* U.S. stocks rise on retail sales, BUD deal [ID:nN12346498]
* Asia stocks, bonds hurt as inflation haunts [ID:nSP43563]

* Nikkei up 0.6 pct on exporters, G8 meeting eyed [ID:nTKV003125]

* Bonds slide on unexpectedly strong retail sales [ID:nN12583083]

* Oil dips as dollar gains counter Nigeria supply fears [ID:nSIN86207]

* Dollar edges down ahead of G8, inflation data [ID:nT3304]

* Gold rises on bargain-hunting, off 6-week low [ID:nSP89009]

* Shanghai copper up as domestic supply tightens [ID:nSP128276]

COMPANY ITEMS:

UBS (UBSN.VX: Quote, Profile, Research)

UBS AG said it had completed a 16 billion franc ($15.4 billion) rights issue
and subscription rights were exercised for 99.4 percent of all new shares issued.

For related news, click on [UBSN.VX-RTRS-LEN]

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

The power group may be ready to raise its 11 billion pound offer for British
Energy BGY.L if the UK nuclear power group recommends its offer quickly, the
Financial Times said on its website. Citing a person it said was familiar with
the situation, the FT said EDF had signaled it intended to walk away from the
process if a deal could not be reached by the end of the month. "Either it
happens quickly or there will be no deal," it quoted the person as saying.

BANCO POPULAR (POP.MC: Quote, Profile, Research)

Mexican investors are talking to minority shareholders of the Spanish bank
with a view to talking a 29 percent stake in the compamy Expansion newspaper
said on Friday. For details, see:[ID:nL13348005]

NOVARTIS (NOVN.VX: Quote, Profile, Research)

Leukaemia patients receiving a higher initial dose of the Swiss drugamker's
Glivec showed better early responses than those taking smaller quantities, the
company said on Friday. [nZAT007773]
RIO TINTO (RIO.L: Quote, Profile, Research)

The London-based mining group is talking to the Libyan Government about
becoming the largest Western investor in the country, Britain's Times reported
on Friday.

EADS (EAD.PA: Quote, Profile, Research)

The U.S. Air Force has conceded that Boeing's (BA.N: Quote, Profile, Research) proposed KC-767 aerial
refueling tanker would cost less over time than the winner offered by Northrop
Grumman Corp (NOC.N: Quote, Profile, Research) and EADS, Boeing told auditors.

For details, see:[ID:nN12392243]

BP (BP.L: Quote, Profile, Research)

The Russian part-owners of oil venture TNK-BP (TNBPI.RTS: Quote, Profile, Research) may one day swap
their stake for equity in co-owner BP, but not during the current "militant
phase" in relations, shareholder Viktor Vekselberg said on Thursday.

For details, see:[ID:nL12437369]

BP accused the Russian partners in its joint venture of acting like
corporate raiders, but the Russian shareholders countered that BP had insulted
the Kremlin. For details, see:[ID:nL12193450]

ROYAL DUTCH SHELL (RDSa.L: Quote, Profile, Research) (RDSb.L: Quote, Profile, Research)

A four-day strike over pay by hundreds of Shell fuel tanker drivers in
Britain will start on Friday morning after last-ditch talks broke down on
Thursday night, the Unite union said. For details, see:[ID:nL12452709]

GLAXOSMITHKLINE (GSK.L: Quote, Profile, Research)

U.S. Senator Charles Grassley asked regulators on Thursday to investigate
whether the drugmaker withheld data about a risk of suicide linked to its
anxiety disorder drug Paxil. For details, see:[ID:nN12352928]

DEUTSCHE BANK (DBKGn.DE: Quote, Profile, Research)

A fund managed by Australia's Babcock & Brown (BNB.AX: Quote, Profile, Research) and Deutsche Bank
(DBKGn.DE: Quote, Profile, Research) will buy UK rolling stock leasing company Angel Trains from Royal
Bank of Scotland (RBS.L: Quote, Profile, Research) for about $7.0 billion, a source familiar with the
matter said. For details, see: [ID:nSYU004541]

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

Japan's Elpida (6665.T: Quote, Profile, Research) is open to a share swap or buying a stake in
Infineon's Qimonda QI.N, Elpida's CEO told German newspaper Frankfurter
Allgemeine Zeitung. For details, see:[ID:nL12679745]

ALLIANZ (ALVG.DE: Quote, Profile, Research), COMMERZBANK (CBKG.DE: Quote, Profile, Research)

Allianz wants to merge Dresdner Bank's retail business and its troubled
investment bank Dresdner Kleinwort with Commerzbank, newspaper Die Welt reported.

INTESA SANPAOLO (ISP.MI: Quote, Profile, Research)

Intesa Sanpaolo has postponed the listing of its real estate unit, IMMIT,
after the initial public offering met weak investor demand, market sources told
Reuters on Thursday. For details, see: [ID:nMAT008281]
(Reporting by Blaise Robinson, additional reporting by Amanda Cooper in London)