MORNING BID EUROPE-Brexit: some spy chance of delay

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

LONDON, Jan 23 (Reuters) - Britain's opposition Labour Party is "highly likely" next week to back an amendment by lawmaker Yvette Cooper that could prevent a no-deal Brexit, John McDonnell, the party's number two, said this morning. That, combined with signs that a number of Conservative lawmakers will back it in a vote scheduled next Tuesday, could force Theresa May to ask the EU for an extension of Article 50. While Brussels is loath to protract the period of uncertainty, it has also said it is open to a delay in certain circumstances - and it too is above all keen to avoid no-deal.

An eagerly anticipated EU report is due today on controversial so-called "visa-for-sale" schemes under which member states sell passports and residency permits to wealthy foreign citizens. Campaigners and lawmakers warn they pose money laundering and corruption risks - all the more so given that a passport issued by, say, Malta gives you the right to move around all the states in the EU's border-free zone.

There have been a lot of stay-aways from this year's Davos. One world leader that is turning up is German Chancellor Angela Merkel - she is due to make a keynote speech to the event this afternoon. Her audience will want to know what she has to say on a range of subjects from transatlantic tensions to Brexit.

MARKETS AT 0755 GMT

After Wall St’s late start to the week saw benchmark stocks record their second biggest loss of the year so far on Tuesday, it’s been calmer so far today on world markets – even if the newsflow on the U.S.-China trade, global economic soundings from U.S. housing to Japanese exports data and also the Bank of Japan’s latest inflation outlook remain dour. Reports of a failed attempt to get trade talks between Washington and Beijing moving this week before high level meetings on Jan 29, and a restatement by U.S. trade advisers of President’s Trump hardline stance on China’s need to shift on structural issues all keep trade tensions high. Shanghai and HK stocks ended little changed, however, after heavy losses on Tuesday. Japan’s Nikkei ended slightly in the red, with South Korea’s Kospi outperforming with gains of about 0.5 percent. In currency markets, China’s offshore yuan regained much of the previous session’s losses and Japan’s yen eased back after the BoJ downgraded its inflation outlook while leaving its super-easy policy settings unchanged, indicating it would be in no rush to tighten in the foreseeable future.

U.S. stock futures were flat after Tuesday's slide, with below-forecast home sales numbers for December and a mixed earnings season so far adding to the trade angst. U.S. Treasury yields and the dollar’s DXY index steadied after Tuesday’s retreat in both. Euro/dollar was firmer ahead of tomorrow’s European Central Bank meeting, but European stocks open lower as incoming corporate earnings disappointed. Sterling remained bid against the euro after hitting its strongest levels in more than two months on Tuesday following a forecasting-beating December UK jobs report and further signs of rising wage growth. Bank of England chief Carney is due to speak in Davos later on Thursday. * Europe corp events: Ahold trading, AJ Bell trading, ASML (Milan: ASML.MI - news) , Barry Callebaut (IOB: 0QO7.IL - news) sales, Burberry trading, Castellum (LSE: 0GT1.L - news) , CYBG (Frankfurt: 30712270.F - news) trading, SEB (LSE: 0MGS.L - news) sales, WH Smith (LSE: SMWH.L - news) sales, Wetherspoon trading, Antofagasta (Other OTC: ANFGF - news) production

* France Jan business climate

* World Economic Forum in Davos – including German Chancellor Merkel, China Vice President Wang, Italian PM Conte, Spanish PM Sanchez, and UK trade minister Fox

* Germany auctions 5-year government bonds

* UK Jan CBI orders trends

* Turkey Jan consumer confidence

* Ghana central bank policy decision

* South Africa Dec inflation

* US Q4 earnings: Citrix, Ford, Texas Instruments (Swiss: TXN.SW - news) , Comcast (Swiss: CMCSA.SW - news) , Raytheon, Northern Trust, Abbott Labs, Proctor & Gamble, Kimberly Clark

* US Nov house prices

* Canada Nov retail sales (Editing by Andrew Heavens)