UK Stocks -- Factors to watch on June 5

LONDON, June 5 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
24-26 points or 0.6 percent higher on Friday, according to financial bookmakers,
reflecting gains overnight on Wall Street and in Asia, with all eyes fixed on
the U.S. May jobs report, a key indicator of the health of the economy.

The UK blue chip index closed up 3.52 points on Thursday at 4,386.94,
rallying after earlier falls in tandem with gains on Wall Street.

U.S. blue chips .DJI rose 0.9 percent on Thursday lifted by strength in
financials and commodity stocks as crude prices CLc1 rose, but the gains
overnight in Asia were more muted ahead of Friday's key U.S. data.

U.S. May non-farm payrolls are forecast to fall by 520,000, a slight slowing
in the decline after a 539,000 drop in April, although the previous month's
number could possibly be revised.

The U.S. unemployment rate is seen rising to 9.2 percent in May, up from 8.9
percent in April.

UK wholesale inflation numbers will be of interest ahead of the U.S. data,
with May PPI input numbers seen falling 8.3 percent year on year, after a 5.0
percent decline in April, while the May PPI output reading is seen down 0.4
percent year on year after a 1.2 percent rise in April.

Political uncertainties will also continue to haunt the market following the
resignation of another member of Gordon Brown's cabinet and as gloomy results
roll in for the ruling Labour party from Thursday's local elections.

For TAKE A LOOK-Britain's Brown under pressure double-click on [nL31000088]

* Financials, surging commodities lift Wall Street [ID:nN04244791]

* Asia shares, oil gain; wary ahead of US jobs [ID:nSP431057]

* Nikkei edges up, but nerves about data cap gains [ID:nT373761]

* Oil rises above $69, buoyed by US jobs data [ID:nSP440940]

* Dollar dips on growing risk appetite, US jobs eyed [ID:nT270480]

* TREASURIES-Slip in Asia before U.S. jobs data, auctions [ID:nT121356]

* PRECIOUS-Gold softer, ETF steady within sight of record [ID:nT373501]

* Copper up on weak dollar, renewed economic hopes [ID:nSHA233252]

UK stocks to watch on Friday are:

RIO TINTO (RIO.L)

The global miner has scrapped its proposed $19.5 billion tie-up with Chinese
firm Chinalco on Friday and instead launched a heavily discounted $15.2 billion
right issue. [ID:nRIOTINTO2]

BHP BILLITON (BLT.L)

Rio Tinto and BHP Billiton, the world's second and third largest iron ore
miners, have agreed to combine their major Australian operations into a 50-50
joint venture. [ID:nRIOTINTO1]

LLOYDS BANKING GROUP (LLOY.L)

Lloyds Action Now is to parade a black horse and miniature pony outside the
annual meeting of Lloyds Banking Group(LLOY.L) on Friday, as the new shareholder
group plans to take legal action against directors of the bank for mounting the
takeover of HBOS last year, the Guardian said.

Also, the LTU union has demanded that Lloyds Banking Group (LLOY.L) provides
a written guarantee that it will keep its final salary pension open for the
scheme's existing 30,000 members, the Financial Times said.

MARKS & SPENCER (MKS.L)

The retailer's executive chairman, Sir Stuart Rose, has seen his total pay
package increase from 1.38 million pounds to 1.76 million pounds at the end of
the financial year, according to the firm's annual financial report, the
Financial Times said.

Also, Steven Esom, the former head of food at Marks & Spencer, was paid more
than 1 million pounds ($1.64 million) for just 112 days' work on its board, The
Times said.

AVIVA (AV.L)

The insurer has stated that it will continue to use the new Market
Consistent Embedded Value accounting standard for its forthcoming results,
despite the risk of this leading to confusing results during a time of economic
volatility, as MCEV was designed during stable conditions, the Daily Telegraph
said.

CARPHONE WAREHOUSE (CPW.L)

The mobile phones retailer reports full-year results.

FULLER SMITH & TURNER (FSTA.L)

The brewer posts full-year results.

HORNBY (HRN.L)

The toy trains to Scalextric group reports full-year results.

BELLWAY (BWY.L)

The housebuilder issues a trading update.

STHREE (STHR.L)

The recruitment firm issues a trading update.

DIGNITY (DTY.L)

The funeral group holds its annual general meeting.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]
(Reporting by Jon Hopkins; Editing by Jon Loades-Carter and Mike Nesbit)