MORNING BID EUROPE-Finland gets taste of austerity troubles

* A look at the day ahead from European Economics and Politics Editor Mark John and Jamie McGeever, Chief Correspondent, Financial Markets EMEA. The views expressed are their own.

LONDON, Nov 6 (Reuters) - The British government has got itself in a twist over the fall-out from the Russian airliner crash in Egypt. PM David Cameron's assertion that it was probably caused by a bomb prompted a warning from Moscow not to jump the gun ahead of the result of the investigation; it also made for an embarrassing backdrop to the London visit of Egypt's president yesterday. After suspending flights back from the resort of Sharm al-Sheikh, Britain is now allowing tourists to return today, but with hand luggage only, for security reasons.

Finland's ruling coalition has been locked in overnight talks to avert a government collapse in a row about cuts to healthcare. If you're not planning to get ill in Finland, you might ask why you should care. Yet this is just the latest euro zone government to get into trouble over austerity -- and in a country which was among the toughest hard-liners insisting that Greece go through its austerity cure. Finnish party leaders might yet reach a compromise and avoid a collapse. But there will be schadenfreude in Athens and other southern EU capitals at their troubles.

Meanwhile the Greek parliament was busy early on Friday approving a bill with reforms prescribed by the country's lenders. That comes ahead of next week's meeting of euro zone finance ministers to decide if Athens qualifies for fresh bailout funds. There are still a couple of outstanding reform measures it needs to tie up if it is to secure a 2-billion-euro sub-tranche of aid in an initial 26 billion instalment.

German industrial output just out showed the steepest drop in more than a year in September. The Economy Ministry, which has been insisting the overall fundamentals remain strong, has acknowledged a "light tailwind" due to a slowdown in emerging markets.

MARKETS (0750 GMT)

All eyes squarely on the October U.S (Other OTC: UBGXF - news) . jobs report, which could well determine whether the Fed raises interest rates next month. Futures markets currently pricing in around a 60 percent probability of December "liftoff", chances that will surely increase in the event of a decent-to-strong report. The data may be mixed, but the soundings from Janet Yellen and other Fed officials point to next month. And markets are shifting in that direction -- the 2-year US yield is its highest in four years, the U.S.-German 2y spread is its widest in 9 years and the dollar has rallied 5 percent in just 3 weeks. But what if the data are decent to soft, or outright weak? Fasten your seatbelts ... German and Euro STOXX futures are flat, France and UK slightly higher, as investors await the U.S jobs data.

In emerging markets the Turkish lira falls another half percent, down 4 percent from post-election highs, while the Kazakh tenge loses another 2.5 percent to a fresh record low after the central bank cuts it loose. Checking CDS Monitoring shares in South Africa's MTN, reeling from Nigeria's $5 billion fine. These are down another 2 percent today. Today's data includes Brazil inflation, auto sales; Hungary industrial output; Mexican consumer confidence.

EVENTS

German industrial output -1.1% in September

French trade data (Sept)

UK industrial, manufacturing data (Sept)

UK trade data (Sept)

US employment (Oct (HKSE: 3366-OL.HK - news) ) (Editing by Sonya Hepinstall)