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German stocks - Factors to watch on September 22

FRANKFURT/BERLIN, Sept 22 (Reuters) - The following are some of the factors that may move German stocks on Friday:

NORTH KOREA

North Korea said on Friday it might test a hydrogen bomb on the Pacific Ocean after U.S. President Donald Trump vowed to destroy the country, with leader Kim Jong Un promising to make a "mentally deranged" Trump pay dearly for his threats.

DAIMLER

The automaker said it will invest $1 billion to expand its U.S.-based Mercedes-Benz plant in Alabama to start building electric sport-utility vehicles there from about 2020.

DEUTSCHE BOERSE

The German stock exchange operator said on Thursday it was capping the annual pay packages of its board members at 9.5 million euros ($11.3 million) each, effective from 2017, as it strives to move on from a months-long insider trading crisis.

E.ON

The German energy group will extend the contract of Chief Executive Johannes Teyssen by three years until the end of 2021, a person familiar with the matter told Reuters on Thursday.

LUFTHANSA, AIR BERLIN

The airline is set to pick up a large part of insolvent rival Air Berlin, with easyJet also still in the running for assets, two sources familiar with the matter said on Thursday.

Air Berlin said its board of directors would review the offers on Sept. 25 and give an update on the process then.

THYSSENKRUPP

Thyssenkrupp steel workers are due to stage a protest rally in Bochum against a planned combination of its European steel operations with those of Tata Steel.

Moody's changes outlook on Thyssenkrupp's Ba2 ratings to developing from stable; affirms rating

INNOGY

Germany's largest energy group by market value, is reviewing its troubled British retail unit Npower but currently has no plans to sell the business, Chief Executive Peter Terium told journalists on Thursday.

ANALYSTS' VIEWS

AIRBUS - Jefferies cuts to "hold" from "buy"

OVERSEAS STOCK MARKETS

Dow Jones -0.2 pct, S&P 500 -0.3 pct, Nasdaq -0.5 pct at close.

Nikkei -0.3 pct, Shanghai stocks -0.5 pct.

Time: 5.06 GMT.

GERMAN ECONOMIC DATA

German September flash PMI due at 0730 GMT. Manufacturing PMI seen at 59.0 points vs 59.3, Services PMI at 53.8 vs 53.5 and compositive PMI unchanged at 55.8.

EUROPEAN FACTORS TO WATCH

DIARIES

REUTERS TOP NEWS (Reporting by Tom Sims and Maria Sheahan)