MORNING BID EUROPE-Rail unions: Macron's big test

(clarifies reference to European allies in paragraph 2)

* 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, March 15 (Reuters) - France's main railworkers' unions vote today on strike action to protest at Emmanuel Macron's overhaul of the rail sector, including plans to scrap existing jobs-for-life and early retirement provisions. He is making two calculations: first, that the unions are a lot weaker than when they brought Paris to a standstill in a similar battle in 1995; and that he has the backing of the country, which now regards the railworkers' benefits as an unjustified anomaly. In terms of Europe's industrial relations, this is potentially a key moment: some are even comparing it to UK premier Margaret Thatcher's stand-off with British unions in the 1980s.

British PM Theresa May finally got strong backing from the White House overnight with its first clear statement explicitly blaming the Salisbury nerve agent attack on Russia. That contrasts with the far more cautious line coming out of EU capitals including Berlin and Paris - partly because they have their own agenda on Russia, partly because they know that overcoming internal EU splits on Russia has proven tough in the past. So far, Britain is asking very little of its European allies in terms of action, although May did talk on Wednesday about seeking to coordinate other measures: expect further discussions ahead of next week's summit. The whole episode is a major test of May's mettle as leader and a foretaste of what diplomatic clout Britain will be able to muster post-Brexit.

Things are moving fast in Slovakia's corruption saga with PM Robert Fico offering to resign - as long as his party gets to nominate the next prime minister. President Andrej Kiska has cancelled an official event and is expected to meet Fico at some point today. He may well accept Fico's terms, as could the junior coalition partner who has brought things to a head. Less clear is whether it will be enough to assuage public anger; a further street protest is planned for Friday.

MARKETS AT 0755 GMT

Global markets are taking trade war fears seriously and are starting to price it as a hit to both U.S. and world growth. The flattening of the U.S. Treasury yield curve to its lowest level since January is one signal, but also some outsize hits to some of the biggest U.S. blue chip industrial stocks – including Boeing (Swiss: BA-USD.SW - news) – who are most vulnerable to international retaliation to President Trump’s proposed tariffs on steel and against Chinese imports.

In Europe, the fizz has already come off the "euroboom" story of late last year and euro zone economic surprise indices have plummeted deep into negative territory in recent weeks to their lowest since April 2016 amid talk that the region’s growth spurt has already peaked for this cycle. Overnight, the S&P500 recorded a third straight day of losses and the Vix volatility gauge nudged back above 17 percent. Ten-year Treasury yields briefly dipped below 2.80 percent earlier. The dollar index was flat, with the greenback a touch lower against the yen and sterling and little changed against the euro.

Asian stock markets have stabilized, however. Shanghai closed little changed, with HK up about 0.5 percent and Tokyo’s Nikkei slightly in the black too. European and U.S. stock futures are pointing higher.

Earnings are still in focus for Europe, especially in the insurance sector where decent numbers from German reinsurer Munich Re and Italy's Generali (EUREX: 566030.EX - news) could provide support. Banks, especially Italian ones, could also be in the spotlight after the ECB released long delayed guidelines on treating new soured bank debt, saying they will go into effect on April 1. Italy holds nearly one third of the euro zone bad loan pile.

The pressure is ramping up on Russia over allegations surrounding the Salisbury nerve agent attack after British PM Theresa May’s initial retaliatory measures were announced on Wednesday and have been followed by more harsh condemnation of Moscow from the U.S., European Union and NATO officials. The rouble edges 0.2 percent higher this morning following three days of losses – in line with gains seen in other emerging currencies such as South Africa’s rand and Turkey’s lira. But Russian Eurobonds show some signs of pressure with the average yield premia demanded by investors over U.S. Treasuries at 173 basis points - its highest level this year having added 11 basis points compared to a 5 bps rise since Monday in the overall index. Russian stocks have steadied this morning after the heftiest losses in around a year on Wednesday.

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

* Europe corp events: Lufthansa Q4, H&M sales, Munich Re Q4, Altice Q4, Old Mutual FY, Berkeley trading statement, ENI (Euronext: ENI.NX - news) strategy presentation; Lanxess Q4, Savills (Stuttgart: 1YZ.SG - news) prelim, Kier group (LSE: KIE.L - news) FY, European car registrations

* Swiss National Bank (LSE: 0QKG.L - news) policy decision

* Norges Bank policy decision

* UK, Spain auction government bonds

* ECB board member Lautenschlaeger speaks in Florence

* French rail unions decide on strike option over SNCF reform

* UK’s Brexit minister Davis answers questions in parliament

* Sweden Feb jobless

* Ireland Q4 GDP, Feb inflation

* Israel Feb inflation

* US March Philadelphia Fed index, Feb import/export prices, weekly jobless claims, Jan TIC data (editing by John Stonestreet)