UK Stocks -- Factors to watch on March 31

LONDON, March 31 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening down 19 to 21 points on Monday, bookmakers said, tracking losses in Asian and U.S. stocks on ongoing concerns over a global credit crunch.

The UK benchmark index ended the previous session down 24.6 points, or 0.4 percent, at 5,692.9 and is heading towards ending its worst quarter since.

The FTSE is down more than 11 percent for the year on concerns about a U.S. recession, and is on course for its worst quarter since the third quarter of 2002 and its third consecutive quarter of losses.

U.S. stocks fell on Friday as a profit warning from J.C. Penney (JCP.N) raised concerns about slowing consumer spending while persistent worries about credit-related problems throttled financial stocks. Asian shares fell on Monday on credit-crunch worries and the impact of weakening U.S. consumer demand on the region's exports.

House prices in England and Wales fell for a sixth month running in March, pushing the annual rate of inflation to its lowest in two years, a survey showed. [ID:nL28886548]

Investors will eye U.S. Chicago PMI data for March at 1345 GMT.

Meanwhile, U.S. investment bank Lehman Brothers LEH.N will file a lawsuit on Monday against Japanese trading house Marubeni Corp (8002.T), saying it was defrauded. [ID:nT254231]

"There are still concerns over the levels of liquidity available in credit markets, whilst with today marking the end of both the month and quarter, some position keeping is also going to be inevitable," a trader said.

"Expect elements such as the Chicago PMI to be instrumental in directing U.S. indices," he added.

The Daily Mail reported that more than 10,000 jobs could be axed from the financial sector in the three months beginning March as the credit crunch wreaks havoc in markets.

* Wall St hit by JC Penney's warning, bank worries [nN28312197] * Oil slides to $105 as Iraq tensions calm [nSYD295760] * Asian shares head for worst qtr in over 5 years [nSP299211] * Japan stocks extend losses, TOPIX down 3 pct [nT27645] * Dollar rises vs yen in choppy FY-end trade [nT6283] * TREASURIES-Little movement in Asia before data [nT350313]

UK stocks to watch on Monday are:

FRIENDS PROVIDENT FP.L

U.S. private equity firm JC Flowers has made an indicative offer to buy UK insurer Friends Provident for around 149 pence per share, or 3.5 billion pounds ($6.99 billion), sources familiar with the matter said on Saturday. [ID:nL29434440]

But the Financial Times reported that Friends Provident is today expected to reject the takeover approach.

MITCHELLS & BUTLERS (MAB.L)

Private equity firms Blackstone (BX.N) and CVC are mulling a plan to buy a "significant minority stake" in pubs group Mitchells & Butlers, the Sunday Times reported. [ID:nL305699]

STANDARD LIFE (SL.L)

Standard Life has begun preparations for identifying a replacement for Sandy Crombie, its chief executive, amid shareholder concern about leadership succession at the firm, reported the Financial Times.

GLAXOSMITHKLINE (GSK.L)

An experimental heart drug from GlaxoSmithKline Plc (GSK.L) effectively blocks an enzyme linked to heart attack risk and a higher dose has a bigger effect, scientists said on Sunday. [ID:nL27533011]

BRITISH AIRWAYS BAY.L

Travellers hoping to fly from the new Terminal 5 at London's Heathrow airport on Monday face more delays from teething troubles with the computerised baggage handling system, British Airways BAY.L said on Sunday. [ID:nL3076673]

TESCO (TSCO.L)

Britain's biggest retailer has halted the rollout of Fresh & Easy, its chain of U.S. convenience stores, while it reviews the performance of the startup business, the Sunday Telegraph reported. [ID:nL3046188]

CAIRN ENERGY (CNE.L)

The firm is due to issue its preliminary final earnings results.

Also, Cairn India Ltd (CAIL.BO), a unit of Britain's Cairn Energy, said development costs for its Rajasthan asset were expected to be $1.8 billion for 2008 and 2009. The company also said in a statement it had posted a consolidated net loss of 139 million rupees ($3.5 million) for the quarter ending Dec 31.

WOOLWORTHS WLW.L

The retailer is believed to be considering slashing its final dividend by up to 50 percent on Wednesday to help it cover rent and interest payments, reported the Guardian.

LLOYDS (LLOY.L)

Eric Daniels, chief executive of Lloyds TSB (LLOY.L), will receive pay, bonus and deferred awards worth 4.8 million pounds ($9.6 million) for 2007, making him one of Britain's best-paid bankers. [ID:nL28162911]

MARKS & SPENCER (MKS.L)

The British retailer is facing increasing opposition from investors over its plan to appoint Chief Executive Stuart Rose as executive chairman, UK newspapers reported on Sunday.

Non-executive directors of the retailer are expected to veto any pay rise for Rose as a result of the controversy, the Times reported on Monday.

BAE SYSTEMS (BAES.L)

Lockheed Martin Corp (LMT.N), whose team includes BAE Systems, on Friday beat out Boeing Co (BA.N) to win a $766 million contract to develop a next-generation radio system for aircraft, ships and ground stations, the Pentagon said. [ID:nN2834DD4]

Also, the Ministry of Defence will hand control of a project to build two new aircraft carriers for the Royal Navy to BAE Systems in an attempt to avoid a 700-million-pound tax bill, the Times reported.

BARCLAYS (BARC.L)

The bank plans to set up a private bank in India and hire 100 people by the end of the year to serve rich entrepreneurs, the Financial Times reported on Monday.

HSBC (HSBA.L)

A rebel shareholder in HSBC Holdings (HSBA.L) again urged Europe's biggest bank to sell its U.S. business, saying if it did not the unit may have to file for Chapter 11 protection from creditors. [ID:nL30137323]

Also, Vega Co Ltd, a wholly owned subsidiary of The HSBC Private Equity Fund 6, is offering to buy Singapore-listed apparel maker Sing Lun Holdings Ltd SLHL.SI for S$119.6 million ($87 million). [ID:nSIN171571]

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB] (Reporting by Rebekah Curtis; Editing by Quentin Bryar)