MORNING BID EUROPE-Bank of England goes on tour

* A look at the day ahead from European Economics and Politics Editor Mark John and Nigel Stephenson, specialist editor, EMEA markets. The views expressed are their own.

LONDON, Oct (HKSE: 3366-OL.HK - news) 14 (Reuters) - Bank of England Governor Mark Carney and deputy governors are making a series of regional visits to the central England towns of Birmingham, Derby, Dudley, Leicester and Nottingham today to meet locals and discuss a number of "soft" subjects such as "improving trust and understanding" in the Bank of England. While Tesco and Unilever (Amsterdam: UZ8.AS - news) may have called a truce in the Marmite war over the pricing of consumer goods, the episode only underlines the dilemma the Bank will face if sterling keeps falling, not least because of the stagnant wage growth across much of the economy. If it raises rates to protect the pound, up go people's mortgage repayments, hitting consumer demand; if it sits on its hands, rising inflation will have the same effect.

Ex-PM Alain Juppe looks to have edged ahead in the first debate last night among candidates for the center-right's nomination in France's 2017 presidential election, according to a snap poll published immediately afterward. Juppe is already the front-runner on a centrist platform that is currently looking to have broader appeal than the tough law-and-order agenda his rival, ex-president Nicolas Sarkozy has adopted in a bid to attract National Front voters to his camp. A decision is due towards the end of next month.

MARKETS AT 0655 GMT

Two major points for markets to chew on as European trade kicks off. Chinese producer prices rose for the first time in nearly five years last year. That brought some relief after Thursday's worse-than-expected trade data from China weighed on markets across the globe. The China theme of late has been one of tentative stabilisation in the economy and the inflation data has soothed nerves. Asian stocks rose, though China fell on profit-taking from gain earlier this week.

The other focus (if you can have two) is on the Fed. Retail sales data will be an important indicator of consumption and then Fed Chair Janet Yellen speaks in Boston, where expectations are she says nothing to rattle expectations of a hike in December. Treasury yields are up this morning and the dollar has gained 0.3 pct against a basket of currencies.

Citigroup (NYSE: C - news) writes a relatively upbeat sounding strategy note, saying that they see reduced global macro risks and reduced bank risks in general.

Upcoming data/events/themes for market reports on Friday:

- Japan auctions 5-yr JGB

- Italy, Spain Sept inflation

- Swiss Sept PPI

- EZ Aug trade data

- Uganda interest rate decision

- US Q3 earnings: JPMorgan (LSE: JPIU.L - news) , Wells Fargo (Hanover: NWT.HA - news) , Citi

- US Sept retail sales, PPI; UMich Oct sentiment

- Boston Fed chief Rosengren speaks in Boston

- Moody's to review sovereign credit ratings of Greece, Spain, SKorea, Czech Rep; S&P to review Malta, Kenya; Fitch to review Russia, Czech Rep, Luxembourg (Editing by Sonya Hepinstall)