The following factors could affect Italian markets on Wednesday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy.

POLITICS

Italian Prime Minister Giorgia Meloni said on Tuesday relations with the United States had to return to normal following a public falling out between President Donald Trump and herself last week.

Italy cannot hold a national election in April because it would not give the government enough time to approve its plans to devolve more powers to regional authorities, Economy Minister Giancarlo Giorgetti said on Tuesday.

More countries could join the Global Combat Air Programme fighter project involving Italy, Britain and Japan, the Italian defence minister said on Tuesday, stressing that opening the venture to other nations would allow greater sharing of costs.

ECONOMY

Italy still has a chance of exiting a European Union infringement procedure for its excessive budget deficit this year, Economy Minister Giancarlo Giorgetti said, as the country's 2025 deficit could be revised downwards within the EU's 3% ceiling in September.

DEBT

Italy's Treasury said on Tuesday it would offer new 5-year, 7-year and 10-year BTP bonds in the third quarter of the year.

The Treasury said in its quarterly issuance guidelines that it would also offer a new Short Term BTP bond maturing on October 30, 2028.

COMPANIES

UNICREDIT CRDI.MI

UniCredit Chief Executive Andrea Orcel said on Tuesday it was more likely than initially anticipated that the European Central Bank would declare the Italian bank in control of Commerzbank CGKG.DE, given the outcome of its takeover offer.

FERRARI RACE.MI

Ferrari has appointed former BMW Italy head Massimiliano Di Silvestre as its chief marketing and commercial officer, replacing long-serving executive Enrico Galliera.

ENI ENI.MI

Eni has signed a Memorandum Of Intent with the authorities in Albania to carry out a feasibility study to establish and manage a national strategic hydrocarbons reserve and energy hub.

ITALGAS IG.MI

Europe's largest gas distributor Italgas will invest €13 billion ($14.85 billion) through 2032 as it increases the use of artificial intelligence and expands across Italy, it said on Tuesday.

DIARY

BERLIN - Italian Prime Minister attends meeting with leaders of Germany, Britain, France and Poland where defence issues will be discussed.

For Italian market data and news, click on codes in

brackets:

20 biggest gainers (in percentage).............PG.MI

20 biggest losers (in percentage)..............PL.MI

FTSE IT allshare index .FTITLMS

FTSE Mib index........ .FTMIB

FTSE Allstars index... .FTSTAR

FTSE Mid Cap index.... .FTITMC

Stories on Italy...... IT-LEN

For pan-European market data and news, click on codes in

brackets:

European Equities speed guide...................EUR/EQUITY

FTSEurofirst 300 index...............................FTEU3

DJ STOXX index.......................................STOXX

Top 10 STOXX sectors............................PGL.STOXXS

Top 10 EUROSTOXX sectors.......................PGL.STOXXES

Top 10 Eurofirst 300 sectors....................PGL.FTEU3S

Top 25 European pct gainers........................PG.PEUR

Top 25 European pct losers.........................PL.PEUR

Main stock markets:

Dow Jones................DJI Wall Street report ......N

Nikkei 225..............N225 Tokyo report.............T

FTSE 100................FTSE London report............L

Xetra DAX..............GDAXI Frankfurt market stories.F

CAC-40..................FCHI Paris market stories....PA

World Indices.....................................0#.INDEX

Reuters survey of world bourse outlook.........EQUITYPOLL1

Western European IPO diary..........................WEUIPO

European Asset Allocation........................EUR/ASSET

Reuters News at a Glance: Equities...............TOP/EQE

Main currency report:...............................FRX/