UK Stocks - Factors to watch on Sept 8

Britain's FTSE 100 is seen opening flat to slightly higher on Tuesday by financial bookmakers, as investors pause for breath after the previous session's hefty gains and await the reopening of U.S.markets after a holiday.

The FTSE 100 is seen opening flat to 0.1 percent higher after closing at an 11-month high at 4,933.18 on Monday, spurred by strong gains in confectionery group Cadbury which rejected a $16.7 billion bid from U.S. group Kraft Foods

Wall Street was closed on Monday due to the Labor Day holiday.

Spot gold touched $997.20 an ounce, its strongest since February, with both simmering economic worries and longer term inflation concerns driving gains while gold futures hit $1,000 an ounce for the first time in six month.

On the economic front, a survey by the British Retail Consortium showed UK retail sales fell on the year last month for the first time since May as cost-conscious consumers refrained from splashing out on non-essential items

UK industrial and manufacturing output figures are due at 0830 GMT while across the Atlantic, U.S. employment trends in August will be the focus at 1400GMT.

* GLOBAL MARKETS-Gold futures hit $1,000, Asia shares rise

* Nikkei hit by yen but JVC, Showa Shell climb

* Yen rises, Aussie pauses near 1-year high

* Oil rises above $68 ahead of OPEC, inventory data

* PRECIOUS-Gold futures hit $1,000/oz as investor

* METALS-Copper eases, China data eyed

UK stocks to watch on Tuesday are:

CADBURY

Kraft Foods said it was intent on pursuing Britain's Cadbury, with analysts saying North America's biggest food group might have to raise its 10.2billion pound ($16.7 billion) offer by up to 40 percent after shares in the world's No.2 candy and chocolate maker increased by almost half on news of the approach. The company's biggest institutional shareholder, Legal & General Investment Management, said in a statement that it thought the approach materially under valued Cadbury, and supported management in opposing the deal.

VODAFONE MOBILE TELECOMS

Deutsche Telekom AG and France Telecom say they plan to merge T Mobile UK and Orange in a 50-50 joint venture company, presenting a challenge to Vodafone.

TESCO

The supermarket chain has said that it will continue to invest in the growth of its U.S. based Fresh & Easy store chain, despite having previously stated that it had put the second stage of its expansion into Northern California on hold due to the economy, the Financial Times reported. However, Tesco has continued to add to the 50 sites it has acquired including reportedly paying $3.75 million for two plots in the East Bay area, the newspaper said.

BURBERRY

The luxury goods group will replace Thomson Reuters in the FTSE 100 index after the news and financial data company group delists from London, the index compiler said on Monday.

BANKS

The Competition Commission's seven-day ban on the sale of payment protection insurance has been challenged by Barclays and Lloyds BankingGroup, who claim that there is not enough evidence of misselling of the controversial insurance to warrant a ban, the Guardian reported.

FIRST GROUP

Greyhound, which is owned by the Scottish transport operator FirstGroup, has been accused of bullying the provinces of Manitoba and Ontario in Canada after it demanded a government subsidy of at least 15 million Canadian dollars to cover losses of less popular routes going through isolated areas, the Guardian reported.

ASHTEAD GROUP PLC

The equipment hire company reports first quarter earnings.

DS SMITH PLC

The paper and packaging group releases a trading update.