UK Stocks -- Factors to watch on August 17

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Mon Aug 17, 2009 1:58am EDT

 LONDON, Aug 17 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening 11-13 points,
or as much as 0.3 percent, lower on Monday, according to financial bookmakers, tracking
weakness overnight in Asia and pre-weekend on Wall Street.
 The British blue-chip index closed 41.49 points, or 0.9 percent, lower on Friday at
4,713.97 dented by data which showed a weakening in U.S. consumer sentiment, fuelling concerns
about the strength of an economic recovery.
 U.S. stocks fell broadly on Friday, with the major indexes snapping a four-week streak of
gains after the data from the Reuters/University of Michigan Surveys of Consumers showed
consumer confidence fell more than expected in early August, dropping to its lowest level
since March. [ID:nN14304812]
 Japan's Nikkei average fell 2.2 percent on Monday, retreating from 10-month highs, with
exporters hit as the yen rose against the dollar on concerns about how quickly the U.S.
economy will recover.
 Japan's economy grew 0.9 percent in April-June from the previous quarter, marking the
first expansion in five quarters and in line with a median market forecast for 1.0 percent
growth, data showed before the start of trade. [ID:nT212505] [ID:nT230506]
 Asking prices for homes in England and Wales are an average 3.1 percent lower this month
than a year ago, property web site Rightmove said on Monday.
 That matched July's annual fall, but a monthly decline of 2.2 percent this month more than
reversed July's 0.6 percent rise from June, leaving the average price of a home at 222,762
pounds. [ID:nLE591829]
 Britain's economy should return to growth in the second half of 2009, although the speed
of recovery will depend on the effect of bank lending constraints and the state of the global
economy, Bank of England policymaker Andrew Sentance said in an article for the Sunday Times
newspaper. [nLG224287]
No other British economic data was due for release on Monday so investors will look ahead
to the afternoon release of the U.S. Empire State index for August, which is expected to rise
to 1.00, up from -0.55 in July, and the U.S. NAHB index for August, which is seen rising to a
reading of 18, up from 17 in July.
 
 * Wall St snaps 4-week winning streak as data weighs         [ID:nN14316042]
 * GLOBAL MARKETS-Asian stocks fall on recovery doubts        [ID:nLH338906]
 * Nikkei slides 2.2 pct after rally; yen hurts               [ID:nT287012]
 * FOREX-Yen up as recovery trades blunted by US data         [ID:nT319803]
 * TREASURIES-Rise in Asia on U.S. economy outlook            [ID:nT315337]
 * Oil extends decline below $67 on gloomy econ data          [ID:nSYD429892]
 * PRECIOUS-Gold extends losses, sinks towards $940           [ID:nT320800]
 * METALS-Shanghai copper and zinc fall on LME correction     [ID:nSP434827]
 
 British stocks to watch on Monday are:
 
 BARCLAYS (BARC.L)
 Barclays is attempting to recruit five JP Morgan (JPM.N) investment bankers with a bonus
package worth a total of 30 million pounds, The Sunday Telegraph reported, without citing
sources. [nLG213686]
 Also, Barclays and Societe Generale (SOGN.PA) have received investment banking licences
for Saudi Arabia, the Financial Times reported on Monday, quoting the Saudi markets
regulator.[nLH555776]
 ROYAL BANK OF SCOTLAND (RBS.L)
 Britain's financial regulator has launched a supervisory review of Royal Bank of
Scotland's takeover of ABN Amro, the Scottish bank said on Sunday. [nLG166348]
 ROYAL DUTCH SHELL (RDSa.L)
 Royal Dutch Shell (RDSa.L) has made a 1.5 billion pounds ($2.48 billion) approach for
Australian coal seam gas producer Arrow Energy AOE.AX, The Sunday Telegraph reported,
without citing sources. [nLG224108]
 BRITISH AMERICAN TOBACCO (BATS.L)
 The tobacco firm, has recruited Richard Burrows, a former Bank of Ireland (BKIR.I)
chairman, to be its new chairman, The Sunday Times reported, without citing sources.
[nLG033948]
 MINERS
 The China Iron and Steel Association (CISA) said on Monday it would negotiate with the
three top iron ore miners, using the price it agreed with Australian miner Fortescue Metals
Group (FMG.AX) as a reference. [ID:nPEK317955]
 RIO TINTO (RIO.L)
 Rio Tinto, Australia's largest iron ore miner, does not see a price pact between smaller
rival Fortescue Metals Group (FMG.AX)< and China's largest steelmaker, Baosteel, as
establishing an industry-wide price, a Rio Tinto spokesman said on Monday.[nSYA006086]
 Also, Australian packaging group Amcor Ltd (AMC.AX) is set to buy Rio Tinto's Alcan
packaging unit for $2 billion, Australian media reported  Monday. [ID:nSIN430700]
 
 XSTRATA (XTA.L)
 The mining giant has redoubled its attempt to win over the investors of its rival and
merger target Anglo American (AAL.L), The Guardian said on Monday. Xstrata also hopes that
Anglo's new chairman, Sir John Parker, will be more receptive to the benefits of a tie-up than
the rest of the board, who have so far been unreceptive to the case presented by its rival,
the newspaper added.
 
 BRITISH SKY BROADCASTING (BSY.L)
 BSkyB has written to the BBC Trust expressing serious concerns over the Trust's handling
of Project Canvas, a plan drawn up by the BBC in partnership with ITV (ITV.L), BT (BT.L) and
Five, which aims to create an internet-connected successor to the Freeview broadcast service,
the Financial Times said on Monday.
 DIAGEO (DGE.L)
 The world's biggest spirits group, said on Sunday it was taking legal action against
British grocer J Sainsbury (SBRY.L), over alleged copyright infringement of its Pimm's brand.
[nLG232713]
 
 ITV (ITV.L)
 The broadcaster's target of a 38.5 percent "share of commercial impacts" by the time of
the switch to digital in 2012 has so far not been met, the Daily Telegraph said on Monday.
 RAYMARINE RAY.L
 The British maker of electronic equipment for boats, has received a takeover approach from
Garmin (GRMN.O), the No. 1 U.S. navigation device maker, The Sunday Times reported, without
citing sources. [nLG247416]
 ASHTEAD (AHT.L)
 Britain's largest plant hire company, is set to equip its UK sales force with Apple
iPhones, to enable them to provide instant quotes and information about the availability of
equipment, The Times said on Monday.
 
 MICHAEL PAGE INTERNATIONAL (MPI.L)
 The recruitment firm reports first-half results.
 
 HILL & SMITH HOLDINGS (HILS.L)
 The safety barrier and street lighting group posts first-half results.
 
 DRAGON OIL (DGO.I)
 The oil explorer posts first-half results.
 
 (Reporting by Jon Hopkins; Editing by Dan Lalor and Simon Jessop)










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