The following factors could affect Italian markets on Wednesday.
Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).
EURO ZONE CRISIS
Italian Prime Minister Mario Monti's government unexpectedly cut the lowest income tax rates ahead of next year's national election, promising to meet the budget goals it has agreed with the European Union. The government said it would also halve a planned increase in sales tax rates to a single percentage point.
Italy's Treasury sells 3.0 billion euros 3-month BOTs (short-term bills) maturing Jan. 14, 2013 and 8.0 billion euros 12-month BOTs maturing Oct. 14, 2013. Subscriptions close at 0900 GMT.
Eleven euro zone countries agreed on Tuesday to press ahead with a disputed tax on financial transactions aimed at making traders share the cost of fixing a crisis that has rocked the single currency area.
* FIAT
Moody's downgraded Italian carmaker to Ba3 from Ba2 with a negative outlook, the rating agency said on Wednesday. Moody's said would consider cutting Fiat's rating further if the carmaker stand alone net industrial cash flow were to exceed a negative 2 billion euros in the current year.
Fiat managers will meet with Italian industry ministry officials on Oct. 12 to discuss potential measures to support carmaker exports, Italian daily MF reported on Wednesday.
* IMPREGILO
Brazilian construction company Primav Construcoes has sweetened its offer to buy about 2 billion reais ($982 million) of shares in local toll road operator Ecorodovias from Italy's Impregilo, EcoRodovias said on Tuesday.
ENI
Italy's state investment holding company, Cassa Depositi e Prestiti (CDP), completed the sale of a 3.3 percent stake in oil group Eni on Tuesday for 2.1 billion euros to help fund the acquisition of a controlling stake in gas network company Snam.
* GENERALI
Italy's insurance group is studying the possibility to separate its units Toro and Ina from the rest of the company to put together its Italian activities, Il Messaggero reported on Wednesday.
* CAMFIN , PIRELLI
Malacalza family, main shareholder in the holding company controlled by Italian businessman Marco Tronchetti Provera, filed a complaint with prosecutors, Camfin said on Tuesday.
The aim of the complaint is to void the decision taken by the holding company's board to issue a convertible bond in Pirelli shares to refinance around 140 million euros of Camfin debt maturing by the end of the year.
ENEL
Enel closed the sale of Endesa Ireland to Scottish and Southern Energy (SSE) for a total of 285 million euros, the company said in a statement on Tuesday.
The sale will have a positive impact on Enel's consolidated net debt of around 361 million euros, including the repayment from SSE of Endesa Irelnd debt for around 75 million euros.
AZIMUT
Italy's leading independent asset manager reported net fund inflows in September of 51 million euros, totalling 1.1 billion euros in the first nine months of the year.
The group had 19.2 billion euros in assets under administration, of which 17.1 billion in assets under management at the end of September.
BANCO POPOLARE
Maurizio Di Maio resigned as board member at the bank in agreement with the top management, the bank said on Tuesday.
((Milan newsroom, +39 02 6612 9507, fax +39 02 801149, milan.newsroom@news.reuters.com))
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