UK Stocks -- Factors to watch on Jan 12

LONDON, Jan 12 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
23-35 points lower on Monday, according to financial bookmakers, reflecting
weakness in Asia and sharp falls on Wall Street on Friday following news U.S.
unemployment rose to its highest level in 16 years in December.

The UK blue chip index closed 56.83 points, or 1.3 percent lower on Friday
at 4,448.54, the third straight session of falls to give an overall loss of 2.5
percent for the first full trading week of 2009.

British Prime Minister Gordon Brown is expected to pledge to stop rising
unemployment caused by the financial crisis from becoming a long-term problem
following a special jobs summit with industry leaders on Monday.

With the economy sliding towards recession, Brown will say, in comments
prepared for delivery, that he will announce plans this week to help people who
have been unemployed for more than six months. [ID:nL9508583].

"The aid package is supposed to encourage hiring and counter rising
unemployment amid the deepest recession in almost three decades," said David
Evans, market analyst at BetOnMarkets.com.

"The FTSE will be very sensitive to the announcement, and hopefully will end
Monday on a positive note," Evans added.

Meanwhile, a government guarantee for bonds backed by mortgages is set to
be announced by British Chancellor Alistair Darling, the Independent newspaper
said, without citing sources.

Britain's economy shrank at its fastest pace since 1980 in the last three
months of 2008, with output falling by 1.5 percent, the National Institute of
Economic and Social Research estimated on Saturday. [ID:nL9477958]

Profit warnings by UK-listed firms hit a seven-year high in 2008, according
to a survey published on Sunday.

Ernst & Young said profit warnings last year totalled 449, the highest
yearly figure since 2001 and 17 percent higher than 2007. [ID:nLB714122]

The Confederation of British Industry has called on the UK government to
speed up its plans to introduce a raft of radical measures to kickstart the
economy, the Daily Telegraph reports.

Heavyweight oil issues will remain to the fore as crude prices retreat.

However, OPEC could cut oil output again at its meeting in March if crude
prices fall further, Iran's representative to the Organisation of the Petroleum
Exporting Countries was quoted as saying on Sunday. [ID:nDAH139617]

* Wall Street falls on job woe, Citi, Chevron, techs [ID:nN09500246]

* Asia stocks down; investors turn cautious on rebound hopes [ID:nMNS1C56da]

* Yen buoyed by risk reversal, euro on defensive [ID:nSYD227642]

* Oil falls towards $40 on demand worries [ID:nSYD418560]

* Gold tracks oil lower, ECB meeting eyed [ID:nSP383940]

UK stocks to watch on Monday are:

ROYAL BANK OF SCOTLAND (RBS.L)

A consortium consisting of Patrick Snowball, the former head of Aviva's
(AV.L) UK operations, BC Partners and Apollo Management is understood to be
considering launching a bid for Royal Bank of Scotland's (RBS.L) insurance
assets, with a decision expected to be made within the next couple of months,
the Financial Times said on Monday.

HBOS HBOS.L

The bank has been informally approached by private equity groups about
buying its housing subsidiaries, Keepmoat and Apollo, according to a report in
The Independent on Sunday [ID:nLB726537]

TESCO (TSCO.L)

Tesco (TSCO.L) is this week expected to post a 2.5 percent increase in
like-for-like sales, which would make its trading report the weakest of the big
four UK supermarkets and cast further doubt on its ambition to become "Britain's
biggest discounter", The Observer said.

RIO TINTO (RIO.L)

Global miner Rio Tinto has indefinitely postponed the $2.15 billion
expansion of its iron ore mine in Corumba, Brazil, as world steel production
drops in the face of global economic growth stalling. [ID:nSYU005813]

ASSOCIATED BRITISH FOODS (ABF.L)

Retail chain Primark, owned by AB Foods, has launched an inquiry into
allegations that TNS Knitwear, a Manchester-based supplier of the budget
clothing retailer, has been breaching UK employment, tax and immigration laws,
the Financial Times said.

CARPHONE WAREHOUSE (CPW.L)

Sales at Carphone Warehouse (CPW.L) are believed to have fallen over the
Christmas period, with little increase in like-for-like sales, The Guardian
said. The profitability of Best Buy Europe, a consumer electronics joint-venture
established by Carphone Warehouse and Best Buy of the United States last year is
also expected to fall, the newspaper added.

HMV GROUP (HMV.L)

British bookseller Waterstone's, owned by HMV will announce on Monday that
it is laying off about 200 staff, the Guardian said, without naming its sources.

INCHCAPE (INCH.L)

Under pressure Car retailer Inchcape is considering a "significant"
fundraising, according to a report in The Sunday Telegraph. [ID:nLB34800]

PUNCH TAVERNS (PUB.L)

Punch Taverns (PUB.L) is expected to report slow trading over the Christmas
period in a trading update this week, with like-for-like sales likely to have
fallen around five percent across the bulk of its estate, The Sunday Times said.

PREMIER FOODS (PFD.L)

Britain's biggest food manufacturer is pushing lenders to sanction a
ground-breaking rights issue in return for relaxing banking covenants on its 1.8
billion pound debts, The Times said on Monday.

MAPELEY MAY.L

Private investors in property group Mapeley have accused the company of
attempting to bury the news of its 45 million pound capital-raising by releasing
the details on Christmas Eve, The Times said on Monday. Shareholders will vote
on the rescue fund-raising at an emergency meeting to be held later this month.

NEW STAR ASSET MANAGEMENT NSAM.L

Fund manager New Star Asset Management is to be sold for a reduced price by
the end of the month, the Daily Telegraph said on Monday. The investment company
is believed to have already received modest bids from rivals with retail fund
management operations, the newspaper added.

Also, Schroders (SDR.L) has made an offer to buy troubled fund manager New
Star Asset Management NSAM.L, the Sunday Telegraph said in an unsourced
report. It said rivals Neptune Investment Management, Henderson and an unnamed
private equity firm were also believed to have made indicative proposals prior
to a deadline last week.

MAVINWOOD MVW.L

The Aim-listed support services group Mavinwood MVW.L, backed by the
former Tory treasurer Lord Ashcroft, is considering selling its drain-fixing
business Ansa, The Independent on Sunday said.

TRADING PLAFORMS

A group of European trading platforms plan to launch a data service that
allows traders to see share prices across all regions, the Financial Times said,
citing people familiar with the matter. Equiduct, majority owned by Deutsche
Borse (DB1Gn.DE), is in talks with Chi-X and BATS Europe to launch the service
aggregating data services across Europe, the newspaper added.

CAPITAL & REGIONAL (CAL.L)

The property developer will issue a trading update.

DAWNAY DAY TREVERIA DTR.L

The investor in German property holds an extraordinary general meeting.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Jon Hopkins)