UK Stocks - Factors to watch on Dec 1

 

Britain's FTSE 100 index is seen opening 32 to 35 points higher on Tuesday, following strength on Wall Street and in Asia as concerns over Dubai's debt issues eased.

Financial bookmakers expected the UK blue chip index to gain as much as 0.7 percent, having shed 1.1 percent on Monday.

The blue-chip index rallied 1 percent higher on Friday having dropped 3.2 percent in the previous session, its biggest one-day percentage fall in eight months, after Dubai sought a debt standstill for state-owned Dubai World.

Dubai World on Tuesday unveiled plans to restructure about $26 billion in debt out of the estimated $59 billion it owes, reassuring investors that the emirate's debt problems can be contained.

On the UK economics front, investors will be eyeing the monthly CIPS Manufacturing PMI, due at 0928 GMT.

Analysts forecast a slight increase in business confidence in the sector,with the headline figure seen shifting to 54.0 in November from 53.7 the previous month.

Ahead of that, the Nationwide house price index is due out at 0700 GMT.

Consensus forecasts are for a further rise in November of 0.3 percent,compared to October's increase of 0.4 percent, representing a slight deceleration in the pace of price rises.

 The annual rate of increase is expected to reach 2.4 percent in November,against 2.0 percent in October.
  
 Later in the day, investors' attention will be drawn across the Atlantic,with U.S. ISM Manufacturing data for November and Pending Home Sales data for October due.
  
 Chairmen or even all directors of British listed companies would bere-elected annually under proposals published on Tuesday to make corporate leaders more accountable and learn from the credit crunch.
  
 
  
 * GLOBAL MARKETS-BOJ meet weighs on yen, Asia stocks steady 
  
 * Nikkei gains 1.4 pct on hopes for BOJ steps               
  
 * Wall St rises as Dubai concerns ease, Guess up late       
  
 * FOREX-Yen falls after BOJ calls meeting; Aussie slides   
  
 * TREASURIES-Prices make slight gains on month-end demand   
  
 * Oil steadies above $77, market seeks fresh cues           
  
 * PRECIOUS-Gold steady near $1,180, uptrend intact         
  
 * METALS-Shanghai copper higher, LME steady, Dubai eyed     
  
  UK stocks to watch on Tuesday: 
  
 TUI TRAVEL 
 
 The tour operator reports fourth-quarter results.
  
 ANGLO AMERICAN 
 
 The three owners of De Beers - 45 percent owned by Anglo American - have agreed in principle to  inject up to $1 billion in the company through a shareplacing, the Financial Times said, citing people close to the company.
  
 CADBURY 
 
 U.S. food group Kraft  is close to finalising a formal offer for the British confectioner, said the Times.
  
 Kraft has until Monday next week to submit an offer document, but it is thought that a formal 9.8 billion pound bid could be submitted to Cadbury shareholders on Friday, said the newspaper.
  
 RIO TINTO 
 
 Extract Resources  has spoken to several parties, including RioTinto, about  developing its Rossing South deposit, the world's largest undeveloped uranium resource, but has not ruled out going it alone.
  
 BP 
 
 A leak from a pipeline near Alaska's giant Prudhoe Bay oil field had only aminor impact on North Slope oil production, an effect that was rapidly being erased, according to BP, the operator of the field, on Monday. 
  
 DIAGEO 
 
 The drinks giant plans to eventually brew its Guinness beer in South Africa now that its new joint venture brewery near Johannesburg has started up, but local production is still some years off. 
  
 BRITISH AIRWAYS 
 
 BA will compensate consumers for cancellation penalties and other expenses stemming from an erroneous $40 fare offer between the United States and India,the U.S. government said on Monday. 
  
 DRUGMAKERS
 
 The effective tax rate for the pharmaceutical industry is set to increase asits business model changes and governments take an increasingly tough line ontax-reduction strategies, consultancy Pricewaterhouse Coopers said on Tuesday.
  
 PEARSON 
 
 The British publisher thinks book retailers are through the worst of the downturn, despite Borders UK's slide into administration last week, and believes U.S. namesake Borders Group is on the up. 
  
 Pearson will continue to invest 8 percent of sales from its education business in new products through next year, which it expects to be a very tough year for U.S. school textbooks. 
  
 UNITED BUSINESS MEDIA 
  
 The British media group believes it is well placed to add to its recent run of acquisitions in the next two years as distressed sellers come to the market and prices for emerging assets dip. 
  
 FIRST QUANTUM MINERALS 
 
 Vancouver-based First Quantum said on Monday its board has approved construction of the $400 million Kevitsa nickel and copper project in Finland,with commercial production targeted for mid-2012.