MORNING BID EUROPE-Europe seizes moment on defence

* 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, Nov 30 (Reuters) - Defence cooperation has always been the Achilles heel of the European Union, either because voters don't like the idea of sending their troops off to war under the command of another nation, or because national sectors have long duplicated each other's weapons programmes because they are major employers back home. Today the European Commission presents its biggest plan in more than a decade to revitalise the 96-billion-euro defence industry with a new joint research fund. Given new impetus by Brexit and Donald Trump's election, the plan is part of a broader EU defence strategy long blocked by Britain but which France, Germany and others see as vital to reduce its reliance on the United States. The main proposal, to be presented at 1100 GMT, is an investment fund which could allow EU governments that pay into it also to borrow, ensuring funds are always available for joint efforts such as on helicopters or drones. This also throws up intriguing questions about how Brexit will apply to Britain's strategy in the defence area: Britain has a real interest in staying involved in some way so that its companies retain access to lucrative contracts.

The upper house of Swiss parliament will pore over a bill making way for a national preference in hiring as a method intended to curb immigration. The approach is a far cry from the immigration limits and quotas that voters demanded in a 2014 referendum and seeks to avoid a clash with the European Union over the free movement of people, which the EU demands as the price for enhanced Swiss access to the single market. A final vote is due by December 16; needless to say, this will be closely watched in Brussels and London given the sensitivities around free movement/market access on Brexit.

MARKETS AT 0755 GMT

As everyone awaits OPEC's decision today in Vienna, it's a reminder of just how important energy prices have become to inflation calculations and bond markets, regardless of the Trump election win earlier this month. After another shakeout on Tuesday, Brent crude has stabilized right on $47pb and the meeting kicks off at 10 GMT. Delegates claim there will be an output agreement today at some point -- the details, how it's shared out, the exceptions and faith in implementation will all matter for market interpretation and failure to agree anything would of course see another price lunge. But for inflation calculations, Brent is still about 7 percent higher than it was on November 30 last year and if spot prices stay here the year-on-year calculations feeding headline inflation rates around the world will only increase through December and January. Flash November inflation for the euro zone will be released later today and although still way below ECB target at 0.6 percent, it will be the highest headline reading since mid 2014, just before the oil price collapse of the second half of that year.

When ECB chief Draghi speaks again later, the nods and winks will again likely point to an announcement next week on a six-month extension of QE from March, but the debate is now whether that extra six months will see bond buying at a much reduced rate than at present. More broadly the oil-related inflation rethink was already unnerving bond markets before the Trump win, which then amplified the broad reflation trade. But it was interesting to see Treasury yields slip lower yesterday on weaker oil prices and not the eye-catching economic strength revealed in the big jump in U.S. consumer confidence and upward revision to Q3 GDP. This is payrolls week after all, with ADP private sector jobs data out later. Elsewhere, eyes are on the UK bank stress tests that will force RBS (LSE: RBS.L - news) to raise even more capital. BoE chief Carney continues to tilt dovish on the monetary policy outlook and risks to financial stability from Brexit and other global political developments.

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

- OPEC meeting in Vienna

- BoE releases half-yearly Financial Stability Report and annual bank stress test results; Carney press conference

- Europe corp events: Britvic (Stuttgart: A0HMX9 - news) , Greene King (Frankfurt: A0F66P - news) , Zoopla, Brewin Dolphin, Sage Group (LSE: SGE.L - news) , Alpha Bank (Athens: 30473702.AT - news) , Rocket Internet (Swiss: OXRKET.SW - news)

- Italy Nov inflation

- Swiss KOF indicator

- German finmin Schaeuble and Bundesbank chief Weidmann open Germany's G20 presidency

- German 5-yr bund auction, German Nov jobless

- EZ November flash inflation

- ECB chief Draghi speaks in Madrid

- UK's Brexit department answers questions in parliament; Treasury Committee grills OBR head on Autumn statement; PM Questions in parliament

- Sweden government bond auction

- India/Poland/Brazil/Portugal/Serbia Q3 GDP

- SAfrica Oct trade

- US Nov ADP private sector jobs report, Oct PCE, Oct (HKSE: 3366-OL.HK - news) pending home sales; Nov Chicago PMI

- Canada Q3 GDP

- Cleveland Fed chief Mester speaks in Pittsburgh

- Dallas Fed chief Kaplan speaks in NYC (Editing by Sonya Hepinstall)