UK Stocks - Factors to watch on Dec 7

 

Britain's FTSE 100 index is seen opening 9-15 points, or 0.3 percent lower on Monday, according to financial bookmakers, consolidating after Friday's modest post-U.S. jobs report gains,with banks likely to retreat on windfall tax concerns.

The UK blue chip index closed up 9.36 points, or 0.2 percent, on Friday at 5,322.36 as Wall Street gained after U.S. employers cut a fewer than expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007.No domestic data is due for release on Monday, so investors are likely to be focused on Wednesday's UK Pre-Budget Report from finance minister AlastairDarling.

Britain is still considering some kind of windfall tax on bankers' bonuses,but officials said no final decisions had been taken on what Darling would do this week.

Prime Minister Gordon Brown will pinpoint 3 billion pounds in public sector savings on Monday as his Labour government fleshes out its plans to halve the ballooning budget deficit over four years.

The Bank of England interest rate decision on Thursday will also draw attention, although no change is predicted to either interest rates or the central bank's quantitative easing policy.

Britain's manufacturing sector will return to growth next year, the recovery gaining pace after a slow first quarter, the Engineering Employers' Federation(EEF) said on Monday.

Across the Atlantic, U.S. October consumer credit numbers and November's Employment index should be a focus this afternoon.

 * GLOBAL MARKETS-Dollar trims gains; jobs data helps stocks
  
 * US STOCKS-Wall St ends higher; jobs data brightens outlook
  
 * Nikkei hits 6-week closing high, JAL surges
  
 * FOREX-Dollar slips vs yen after rally on jobs news
  
 * TREASURIES-Steady in Asia in wake of jobs data sell-off
  
 * Oil up towards $76 on dlr easing; demand hope
  
 * Gold dips, briefly falls below $1,150/oz
  
 * METALS-Copper steady on econ hopes, shakes off dlr impact
  
  UK stocks to watch on Monday are: 
  
 LLOYDS BANKING GROUP 
 
 Peter Wood, the founder of several insurance companies, is lining up financing to buy out his Esure motor insurance business from Lloyds Banking Group, the Sunday Times reported.
  
 RIO TINTO
 
 The global miner has sold its 50 percent stake in the Hydrogen Energy International joint venture to its partner BP for an undisclosed sum, Rio said in a statement on Monday.
  
 BHP BILLITON 
 
 BHP Billiton and Rio Tinto signed a $116 billion iron ore joint venture agreement on Saturday to combine their Western Australian iron ore operations.
  
 CADBURY 
 
 Press reports over the weekend suggested Hershey was in talks with Nestle over the possibility of forming a consortium to bid for Cadbury after Kraft Foods on Friday formally launched its 713 pence a share offer for the British confectionery group.
  
 TESCO 
 
 Tesco is expected to announce a three percent increase in sales year-on-year in its trading update on Tuesday, the Independent on Sunday said.
  
 Also, Tesco is seeking to launch a version of its successful Clubcard shopper loyalty programme for its Fresh & Easy customers in the U.S. The Financial Times said on Monday.
  
 SAINSBURY 
 
 The food retailer's new chairman, David Tyler has warned shareholders delivering short-term profits growth could damage the business in the long run,the Sunday Telegraph said.
  
 UNITED UTILITIES
 
 The water company has hired JP Morgan Cazenove to oversee an auction as part of a wide-ranging asset disposal, the Sunday Times reported.
  
 CENTRICA 
 
 The utility group's British Gas unit plans to provide insurance to its customers to protect services such as boilers, central heating systems and plumbing, and is in the process of recruiting staff, it said on Sunday.
  
 CAPITA 
 
 The outsourcing group on Sunday denied an allegation it had overcharged schools for IT services by 75 million pounds ($124.4 million), saying it had a good relationship with its clients.
  
 NORTHGATE
 
 Britain's largest van hire group, Northgate, will announce higher-than-expected profits on Tuesday, The Mail on Sunday said.
  
 NOVAE GROUP 
 
 The insurance firm is finalising plans to distribute millions of pounds individends that could be revealed on Monday, The Mail on Sunday said.
  
 SHANKS
 
 The waste management firm is facing shareholder pressure to open talks with Carlyle over a proposed 135 pence-per-share offer, having rejected three previous offers from the private equity firm, The Daily Telegraph said on Monday.