The following factors could affect Italian markets on Friday.
Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).
POLITICS
Democratic Party festival 'Festa Democratica' starts in Genoa, ending on Sept. 9. Expected attendees include Prime Minister Enrico Letta, Greek Deputy Prime Minister Evangelos Venizelos (1430 GMT). * Junior Minister Pier Paolo Baretta told La Stampa the government would try to put off an expected increase in the value added tax until next year but an overall VAT reform would then be necessary to stave off the rise.
ITALIAN BONDS
Italian bond yields fell on Thursday as the market easily absorbed a debt sale after the government agreed to scrap a property tax, for now smoothing over divisions in the country's fragile ruling coalition.
ECONOMY
National statistics institute ISTAT releases July and Q2 unemployment data (0800 GMT), August flash CPI and HICP data (0900 GMT), July industrial producer prices (1000 GMT).
Reuters releases August asset allocation (1100 GMT).
COMPANIES
FIAT
The Italian carmaker's unions expect an update from Chief Executive Sergio Marchionne on long-delayed investments at its flagship Mirafiori factory at a meeting in September, union sources said on Thursday.
SALVATORE FERRAGAMO
The Italian luxury shoemaker said core earnings rose 26 percent in the first half as Asian shoppers and well-heeled tourists in Europe snapped up its products.
MEDIASET
Former Prime Minister Silvio Berlusconi was the mastermind behind a complex system of tax evasion by his holding company Fininvest, which controls Mediaset, Italy's highest appeals court said on Thursday. * FINMECCANICA
The chief executive of the defence group's AgustaWestland unit told Il Sole 24 Ore negotiations with Russia over the sale of its AW139 helicopters were ongoing but the order size was being reduced.
Prime Minister Enrico Letta will meet in Genoa on Friday with union representatives from Finmeccanica's units Ansaldo STS and Ansaldo Energia, Il Sole reported. * GENERALI
Portugal's Banco Espirito Santo is the only potential buyer for the Italian insurer's Swiss unit BSI but the selling process is being slowed down by valuation and regulatory concerns, Il Sole 24 Ore reported citing rumours.
* ASCOPIAVE
The regional utility reported on Friday a 42 percent rise in first-half core earnings to 72 million euros helped by higher gas sales margins.
* UNIPOL
Italy's tax agency has asked the insurer to pay 25.7 million euros in higher taxes, interests and fines, several newspapers reported.
* TELECOM ITALIA
Telco, the holding company that controls the telecoms incumbent, wrote down shareholder equity by roughly half to 892 million euros to meet losses stemming from a 901 million euro writedown of its stake in Telecom Italia.
* BANCA MONTE DEI PASCHI DI SIENA
The charitable foundation that is the leading shareholder in the bank is close to an agreement to pick its new president, Il Sole 24 Ore reported. Employers' confederation Confindustria's Deputy Chairman Antonella Mansi is in pole position, it added.
* BANCA POPOLARE DELL'EMILIA ROMAGNA
Standard and Poor's has cut its rating on the Italian lender to 'BB-' mentioning risks of higher-than-expected loan loss provisions after a sharp worsening in asset quality in the first half, the bank said on Thursday.
The lender added it disagreed with the ratings agency's opinion as the increase in the stock of doubtful loans stemmed from an "extraordinary" review of the loan portfolio following stricter criteria dictated by the Bank of Italy.
For more details on today's events please see the full agenda in Italian.
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