MORNING BID EUROPE-Jitters on display over "Brexit"

* 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, Oct (HKSE: 3366-OL.HK - news) 6 (Reuters) - A warning by business leaders to Britain's ruling Conservatives that they should proceed with the planned referendum on EU membership sooner rather than later or risk an "out" vote touches on the growing concern that PM David Cameron has not quite got things under control. The "in" campaign has yet to be launched properly and there are signs of impatience among some in Brussels that Britain has not spelt out what reforms it will be seeking to remain in the bloc. The matter will continue to dominate the party conference in Manchester today, while EU court rulings are also due on two delicate topics in Britain -- its blanket ban on prisoner voting and rules on EU nationals' rights to UK child benefit.

Foreign investors will be bemused by TV pictures of Air France executives fleeing a meeting on job cuts after workers stormed in, one executive escaping only after his shirt was ripped off his back. The government has complained that yesterday's violence reinforced a "caricature" of France abroad, but this is only the latest in a series of violent labour protests that French authorities have either been unable to, or chosen not to quell. Unions have called on the government to give guarantees to prop up the company; the government says re-nationalisation is not an option.

Portuguese Socialists meet later to discuss the fate of their leader Antonio Costa, under fire within the party after incumbent pro-austerity PM Pedro Passos Coelho won Sunday's election and the Socialists lost votes to a small hard-left grouping. This could all have negative knock-on effects for the country's reform course: Passos Coelho needs the Socialists' backing to pass a 2016 budget, but the political mood could turn against consensus-building.

In Germany, August industry orders just out unexpectedly fell 1.8 percent - mainly, it seems, due to weaker demand from non-euro zone countries plus the effect of holidays.

MARKETS (at 0645 GMT)

The October bounce back in global equity extended through Wall St and Asia overnight even though the arguments for a resumption of the bull market seem tenuous at best - even if Fed rate hikes this year are off the agenda. This morning's news of an unexpected drop in German industrial orders in August just the latest in a long line of data pointing to a spluttering world economy, on top of Friday's US labour market report, the weaker than forecast September PMI business surveys out yesterday and the IMF's expected downgrade of global forecasts later today.

A modest retreat in the dollar post-payrolls has been cited by some as reason for stabilizing commodity prices and energy/mining sectors. Another rally in Glencore (Xetra: A1JAGV - news) yesterday on reports of asset sales and talk of buyouts helped. Also drawn in as positive arguments was the Trans-Pacific trade deal sealed yesterday, despite the lack of detail on the pact, and some hopes the Bank of Japan may surprise with further easing when it finishes its two-day meeting on Wednesday. Countering that is the onset of the Q3 earnings season in the US, where S&P500 earnings are expected to be down 4.2 percent in the year through September. Chinese markets remain out until Thursday, however, so their return may give a reality check.

Wall St added almost 2 percent last night after five straight days of gains, however, a close of the ViX volatility gauge back below 20 percent for the first time since August 20 will be a major relief. The Nikkei closed 1 percent higher earlier, while emerging markets were firmer too. The dollar index and 10-year Treasury yields were off slightly. Eurostocks were called steady to a fraction higher at the open, with Wall St futures marked down at this early stage. Brent was firmer, but again failed to recapture $50. Australia interest rates were left unchanged.

Emerging market stocks and currencies climbed on Tuesday as investors took advantage of what looked increasingly like another delay to U.S (Other OTC: UBGXF - news) . rate hikes as well as more stimulus from other major central banks. Watching for developments from the IMF/WB meetings in Lima, especially for news on whether Ukraine/Russia finmins could meet about restructuring a $3 bln Eurobond. Polish interest rate decision at 0930 GMT, expected to leave rates steady at 1.5 percent. Monitoring Turkish CDS after Russia airspace spat.

EVENTS

Swiss Sept inflation

ECOFIN Meeting in Luxembourg

Poland rate decisions

UK 20-year gilt auction

US Aug trade data

IMF's World Economic Outlook released in Lima, IMF meetings all week (Editing by Hugh Lawson)