MORNING BID EUROPE-EU struggling to ride populist wave

* 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, Sept 16 (Reuters) - Populism is "galloping" across Europe, European Commission President Jean-Claude Juncker declared this week in a warning to leaders meeting in Bratislava today to discuss its post-Brexit future. Yet defining populism - and deciding what to do about it - is not easy. The term was coined in the 19th century to describe the American People's Party, founded in 1892 in the belief that both the mainstream Republican and Democratic Parties were failing poor workers and farmers. Since then, it has been applied to pretty much any movement which claims as its main goal defending the interests of the people against a self-serving "Establishment" - be that the mainstream political parties, big business, the Brussels institutions, or even just "experts". Britain's UKIP, France's National Front, Greece's Syriza and Italy's Five Star are radically different but all have populist tinges in their anti-establishment rhetoric. Often they shun the label because it has acquired a pejorative sense: when Juncker uses the term, for example, he is referring to cynical attempts to play on voters' gut concerns over foreigners, crime or unemployment. In some cases, he is right. Yet the populists can't be as easily written off as that because in other cases they are picking up votes by hitting on genuine concerns where mainstream politicians seem to have no answers. The main task of the Bratislava summit today should be to identify those concerns and start coming up with answers. Unfortunately, on the big issues - such as tackling economic inequality or implementing a plan for integrating over one million new migrants and refugees - the 27 leaders are split. Instead, they will focus on less pressing areas where they can agree, such as plans for closer defence cooperation. Expect the gallop to continue.

MARKETS AT 0655 GMT

Deutsche Bank (LSE: 0H7D.L - news) shares will be in focus after U.S. Department of Justice asked it to pay $14 billion to settle an investigation into its selling of mortgage-backed securities. Otherwise, next Wednesday's Fed and Bank of Japan policy meetings are already having a dampening effect on markets activity. Most major currency pairs are stuck in tight ranges as European trade begins. European are matching the London weather - soggy - and heading for a slightly lower start. German bond yields are down just over a basis point. Thursday's U.S. data splurge gave the Fed no reason to contemplate a rate hike next Wednesday and futures price in just a 12-percent chance of that happening. That, along with a big rise in Apple (NasdaqGS: AAPL - news) shares on the eve of the iPhone 7 launch, pushed Wall Street up 1 percent. Asian shares are up 0.4 percent, according to MSCI (Frankfurt: 3HM.F - news) 's main Asia-Pacific exJapan index and Tokyo stocks rose 0.7 percent.

In the government bond market, eyes will be on Portugal after an 18 bps rise in its 10-year yields on Thursday after the budget watchdog warned the economy was slowing and that the country would miss deficit targets. S&P is due to review its credit rating on Portugal later in the day

The prospect of more exports from Libya and Nigeria helped nudge oil prices lower. Brent crude was last down 33 cents at $46.25 a barrel.

European stock index futures traded 0.1 to 0.3 percent lower, with the pan-European STOXX 600 index heading for its second straight week of losses.

Shares (Berlin: DI6.BE - news) in Deutsche Bank fell 8 percent. Separately, a source told Reuters that bank is nearing a deal to sell its British insurance business Abbey Life Assurance Co to Phoenix Group Holdings. Fiat Chrysler Automobiles is recalling 1.9 million vehicles worldwide for an airbag defect linked to three deaths and five injuries.

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

* SKorea Aug trade revision

* EU Summit in Bratislava

* Italy July trade

* EZ Q2 wage costs

* Russia rate decision (cut expected)

* US Aug CPI inflation, Sept UMich sentiment, July TIC data

* US markets 'Triple Witching' day

* Moody's to review sovereign credit ratings of Ireland (Other OTC: IRLD - news) , France, Slovenia; S&P to review Russia, Portugal, Austria, Cyprus, Denmark, Finland, Hungary, Nigeria, Lithuania, Luxembourg, Montenegro; DBRS to review Italy (Editing by Louise Ireland)