LIVE MARKETS-Headlines to watch: German autos, Shire, Zurich Insurance

Dec (Shanghai: 600875.SS - news) 5 - Welcome to the home for real-time coverage of European equity markets brought to you

by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger to share

your thoughts on market moves: helen.reid.thomsonreuters.com@reuters.net

HEADLINES TO WATCH: GERMAN AUTOS, SHIRE (Xetra: S7E.DE - news) , ZURICH INSURANCE (IOB: 0QP2.IL - news) (0655 GMT)

For Europe, German carmakers' shares could move after their meeting with the White House,

during which Trump pressed the senior executives to expand their investments in the U.S. -

something which the carmakers said they planned to do, but would be unable to if the

administration imposed new tariffs.

Shire could get a boost after Takeda shareholders approved the takeover of the London-listed

pharma company.

Zurich Insurance sounded a confident note, saying it's set to meet its 2017-2019 targets

thanks to cost savings.

Takeda shareholders give nod for $59 bln Shire acquisition

White House presses German automakers to expand U.S. investments

Air France (Paris: FR0000031122 - news) strike leader defeated in boost for new CEO

Volkswagen (IOB: 0P6N.IL - news) may use Ford's U.S. plants to build cars, deepening alliance

Zurich Insurance says on track to meet 2019 targets

Roche's Tecentriq wins speedy U.S. review in small cell lung cancer

Italian PM says can change "a few little things" on budget

China's BAIC stock sinks on report Daimler (IOB: 0NXX.IL - news) may raise joint venture stake

HSBC China securities JV to quadruple China research coverage

Swedish retailer Clas Ohlson (LSE: 0GQE.L - news) to close stores in UK, Germany

Nissan panel puts off selection of nominee to succeed Ghosn -source

UK car sales fell around 3 pct in November - preliminary data

(Helen Reid)

*****

"CHRISTMAS HAS BEEN STOLEN BY THE GRINCHES" (0642 GMT)

Though there's still a couple of weeks of trading to go until the Christmas lull, investors'

hopes of an early "Santa rally" have been pretty much dashed by the yield curve grabbing the

spotlight, as well as doubts over how "wonderful" and "warm" the Trump-Xi dinner last Saturday (Shenzhen: 002291.SZ - news)

really was.

"Christmas has been well and truly stolen by the Grinches," writes Rabobank's senior

strategist Michael Every, who counts five:

- President Trump, whose post-G20 tweet calling himself a "Tariff Man" hasn't comforted

nervy investors. A task force set up by Trump also wants to give the U.S. Postal Service the

right to hike rates for packages, a move that could hurt Amazon and other big online retailers

- Chinese President Xi, whose government has said comparatively little with officials

telling Reuters they were "waiting for the leaders to return" before publicising details

- Brexit: Prime Minister Theresa May suffered embarrassing defeats as her government was

found in contempt of parliament, and a group of Conservative lawmakers won a challenge to hand

more power to the Commons if her deal is voted down

- Europe: Macron's tug-of-war with the "gilets jaunes" may not be over as the movement

hasn't welcomed his U-turn on fuel taxes, demanding a full cancellation

- The yield curve: "We are in single digits on U.S. 2s-10s and at this rate could be in what

is traditional recession warning territory by the end of the week, let alone by Xmas," says

Every

(Helen Reid)

*****

SELLING TO CONTINUE AFTER WALL STREET SUFFERS SHARP FALLS (0623 GMT)

European stocks are set to fall further this morning after Wall Street lost more than 3

percent as the bond market sent anxiety-provoking signs about economic growth and investors

stayed nervy about global trade.

The spread between 2-year and 10-year Treasury yields is at its flattest level in more than

a decade, and edging closer to an inversion, seen as a signal of an impending recession.

Asian stocks slid across the board on Wednesday, dragged down by Wall Street's tumble as

sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor

worries about global economic growth.

Financial spreadbetters IG (Frankfurt: A0EARV - news) expect London's FTSE to open 72 points lower at 6,951,

Frankfurt's DAX to open 150 points lower at 11,186 and Paris' CAC to open 59 points lower at

4,954.

(Helen Reid)

*****

(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus)