UK Stocks -- Factors to watch on June 8

LONDON, June 8 (Reuters) - Britain's FTSE 100 .FTSE is seen opening 14 to
15 points or 0.3 percent lower on Monday, according to financial bookmakers.

The index closed 51.62 points or 1.2 percent higher at 4,438.56 on Friday
buoyed by U.S. non-farm payrolls which showed that far fewer jobs than thought
were lost in May than feared prompting hopes that economic recovery may be
around the corner.

However investors are still reluctant to take big positions as sentiment
remains fragile while there is little in the way of corporate news or economic
data to give more clues on the state of the economy.

"With almost no economic data for UK this week, it is very likely that the
FTSE will trade in a range," said David Evans, market analyst at
BetOnMarkets.com.

The recession in Britain is over for now, a slim majority of economists said
in a poll published by the Financial Times on Monday. [ID:nL8268942]

Britain's businesses feel more confident about their prospects than at any
other time in the past 12 months, Lloyds Banking Group's monthly "Business
Barometer" shows, providing further evidence of improving sentiment in the
economy as the slowdown at least bottoms out, the Independent said.

The political situation will be closely watched with British Prime Minister
Gordon Brown under more pressure after damaging European election results,
adding to his woes after six senior government ministers quit the government
last week. [ID:nL7656561]

The Daily Telegraph quoted City experts as saying that the turmoil engulfing
Gordon Brown's government risks creating a "fiscal crisis" by choking off the
political will required to repair Britain's battered public finances.

* Wall St ends mixed after U.S. jobless rate jumps [ID:nN05304885]

* GLOBAL MARKETS-Japan stocks up, bonds down on econ hope [ID:nSP473789]

* Nikkei hits 8-mth high on yen, U.S. economy hopes [ID:nT334282]

* Dollar slips after gains made on US jobs data [ID:nT18285]

* Oil edges down towards $68 on stronger dollar [ID:nSP463114]

* TREASURIES-Extend loss in Asia, 10-yr yield highes [ID:nTKW006455]

* Gold inches up as dollar weakens, ETF dips [ID:nT43251]

* Copper edges down on higher dollar [ID:nSHA38450]

UK stocks to watch on Monday are:

BARCLAYS (BARC.L)

The bank is close to selling its Barclays Global Investors asset management
unit to BlackRock (BLK.N), the Financial Times said late on Friday.
[ID:nL5232046]

BRITISH AIRWAYS BAY.L

The airline is confident on its merger talks with Spanish airline Iberia
IBLA.MC. [ID:nSP479473]

In separate news, pilots at the British airline could take an unprecedented
voluntary pay cut following talks this week on a number of cost saving measures,
the Sunday Times reported citing industry sources. [ID:nN07274499]

VODAFONE (VOD.L)

The mobile phone company is expected to resume a sales agreement with
Carphone Warehouse Group (CPW.L), ending a three-year dispute, the Sunday Times
reported. [ID:nL796037]

GLAXOSMITHKLINE (GSK.L)

An experimental diabetes drug from the drug company was more effective than
Eli Lilly (LLY.N) and Amylin Pharmaceuticals' (AMLN.O) Byetta in contrllling
blood sugar, a mid-stage test unveiled on Sunday showed. [ID:nL5159781]

ASTRAZENECA (AZN.L)

The drugmaker has invested 4 million pounds into a three-year joint venture
to develop new anti-cancer drug, the Daily Telegraph said.

FERREXPO (FXPO.L)

The chief executive of Ferrexpo has hit back at dissident shareholders,
suggesting that if they do not like the iron ore producer, they should sell up,
the Financial Times reported.

ROYAL BANK OF SCOTLAND (RBS.L)

The bank said it has instructed legal counsel to review the legality of
former chief executive Fred Goodwin's pension arrangements. [ID:nL719606]

A.G. BARR (BAG.L)

The Scottish drinks maker releases a trading update.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]
(Reporting by Simon Falush with additional reporting by Dominic Lau)