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ITALY - Factors to watch on September 30

The following factors could affect Italian markets on Monday.

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

POLITICS

Italy's president began talks on Sunday to pull the country out of a new political crisis, attempting to undercut a move by former Prime Minister Silvio Berlusconi to bring down the government and force new elections seven months after the last vote.

Italy could face pressure from international partners if the current political crisis persists and reverberates through the euro zone, Labour Minister Enrico Giovannini said on Sunday.

Italy's public accounts are in order and financial markets have already factored in political instability, Economy Minister Fabrizio Saccomanni said in a newspaper interview on Sunday hours after a political crisis left the government paralysed.

Italy's budget deficit will come in at 3.2 percent of output this year, overshooting the government's 2.9 percent target and the European Union's 3 percent ceiling, the International Monetary Fund said on Friday.

If the government does not fall the Treasury will sell further equity stakes to state-holding CDP by year-end to lower the public debt, Corriere della Sera reported on Monday citing a Treasury document on 2013 public finances dated Sept. 25.

The document flags "the concrete risk" that the deficit reduction between 2012 and 2013 would not ensure the minimum annual fall in public debt required by EU rules possibly leading to a new excessive deficit procedure.

ECONOMY

National statistics institute ISTAT releases August producer prices data (0800 GMT) and September flash CPI and HICP data (0900 GMT).

Reuters releases September asset allocation (1100 GMT).

COMPANIES * BANKS

Bank of Italy's capital could be re-evaluated for 5.0-7.0 billion euros, Corriere della Sera reported on Monday quoting a Treasury document dated Sept. 25.

INTESA SANPAOLO

Italy's largest retail bank Intesa Sanpaolo ISP.MI ousted CEO Enrico Cucchiani on Sunday, after he clashed with the powerful chairman of the lender's supervisory board and several influential shareholders.

TELECOM ITALIA

Telecom Italia Chairman Franco Bernabe is considering resigning at a board meeting scheduled for Thursday, a source close to the situation said, as his plans to relaunch the indebted company may not get enough backing.

Italian prime minister Enrico Letta said on Sunday if foreign investors arrived at Telecom Italia that were better than Italian ones he would not be scandalised. What Telecom needed was investments.

Post Office head Massimo Sarmi is in pole position to become chairman of Telecom Italia to replace Franco Bernabe who is expected to resign at a board meeting on Thursday, Italian newspapers said over the weekend. Vittorio Caio, head of Avio, is also in the running, they said. Il Sole on Sunday said the powers of current CEO Marco Patuano could be extended.

La Repubblica said former Datalogic head Massimo Sacchetti had also been sounded out. The paper said CEO Patuano will present a plan to the board to split the group's domestic business in 4 units (network, business clients, retail clients, services).

FINMECCANICA

Italian train maker AnsaldoBreda is seeking 132 million euros ($179 million) from Dutch Railways in a dispute over trains that were withdrawn within months of their launch in 2012, it said in a statement on Friday.

CNH INDUSTRIAL

Truck and tractor maker CNH Industrial is aiming for an investment grade credit rating and could distribute the money saved on interest payments to shareholders, the group formed from the merger of Fiat Industrial and its CNH unit said.

CNH Industrial debuts in Milan and New York.

ANSALDO STS

The government is looking to create an Italian transport pole in regard to Ansaldo STS, Italian premier Enrico Letta said on Sunday when asked about the growing influence of foreign capital in Italian companies.

SAVE

Finanziaria Internazionale (Finint) should sign a deal by the end of this week to buy a 33 percent stake held by insurer Generali in the vehicle that controls Venice airport operator SAVE, La Repubblica said on Sunday. As part of the deal Intesa Sanpaolo and UniCredit would lend the vehicle 50 million euros to replace a convertible bond of that amount held by Generali, it said.

BANCA CARIGE

The lender holds a shareholders' meeting to appoint new board of directors, followed by news conference

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

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

FTSE IT allshare index

FTSE Mib index........

FTSE Allstars index...

FTSE Mid Cap index....

Block trades..........

Stories on Italy...... <IT-LEN>

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