UK Stocks -- Factors to watch on June 11

LONDON, June 11 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
10 to 12 points higher on Thursday, according to financial bookmakers, having
closed up 31.96 points, or 0.7 percent at 4,436.75 in the previous session.

Energy stocks are likely to get a boost from firmer crude prices CLc1,
which traded above $72 a barrel, but rising energy prices, along with higher
interest rates, could put a damper on consumer and business spending, derailing
recovery.
U.S. May retail sales and weekly jobless claims, both due at 1230 GMT, may
provide investors with further clarity on the world's largest economy as the
pace of the economic deterioration has moderated.

But gaping U.S. trade and budget deficits and a weak auction of government
debt that pushed interest rates higher pointed to a bumpy road to recovery for
the U.S. [ID:nN10640359]
British Prime Minister Gordon Brown said recent economic data suggested
government action to tackle the recession was starting to have some effect.
[ID:nLA150454]

In Asia, Chinese investment surged in May on the back of government
pump-priming and a recovery in the property sector, providing fresh evidence
that the world's third-largest economy is leading others on the path to
recovery. [ID:nPEK180771]

Japan's economy, however, shrank in the first quarter at its fastest pace
since World War Two, supporting the view that the country will recover slowly
from recession after hitting bottom in January-March. [ID:nT256956]

* Wall St falls as rate worries dent recovery hopes [ID:nN10462992]

* Nikkei down after hitting 8-mth high, data eyed [ID:nT258651]

* Oil at 7-mth high, buoys Asia resources stocks [ID:nSP482823]

* Oil heads towards $72 on falling U.S. inventories [ID:nSP478946]

* Dlr falls ahead of next Treasury auction hurdle [ID:nT256649]

* TREASURIES-Edge up in Asia, 10-yr yield off 8-mth peak [ID:nT260948]

* Gold steady as dollar and oil eyed, ETF unchanged [ID:nT260643]

UK stocks to watch on Thursday are:

RIO TINTO (RIO.L)

Rio Tinto offered a share in a planned iron ore alliance with BHP Billiton
(BLT.L) to Chinalco as a peace offering following the collapse of Rio's $19.5
billion deal with the Chinese firm, the Australian Financial Review said on
Thursday. [ID:nSYD476524]

ASTRAZENECA (AZN.L)

Three widely used antipsychotic medications, including AstraZeneca's
Seroquel, appear safe and effective overall in treating children and teenagers
with schizophrenia or bipolar disorder, a U.S. advisory panel said.
[ID:nN10464738]

ROYAL BANK OF SCOTLAND (RBS.L), LLOYDS BANKING GROUP (LLOY.L)

The company managing Britain's stakes in Royal Bank of Scotland and Lloyds
Banking Group could sell an "exchangeable bond" in the two banks, according to
the Daily Telegraph. [ID:nB692]

LONDON STOCK EXCHANGE (LSE.L), 3I (III.L), WOLSELEY (WOS.L)

The London Stock Exchange, private equity firm 3i and plumbing supplies
group Wolseley will be promoted to the FTSE 100 benchmark following the latest
quarterly reshuffle, index compiler FTSE said on Wednesday. [ID:nLA178387]

They will replace non-life insure Amlin (AML.L), leisure firm Whitbread
(WTB.L) and power generator Drax Group (DRX.L).

BAE SYSTEMS (BAES.L)

Britain is unlikely to buy all of the remaining 48 Eurofighter Typhoon jets
it has signed up for, a source at the Ministry of Defence confirmed on Thursday.

The jets are built by the Eurofighter consortium, consisting of BAE Systems,
Finmeccanica (SIFI.MI) and EADS (EAD.PA). [ID:nB503382]

ITV (ITV.L)

The broadcaster has offered holders of its 500 million euros ($705.5
million) fixed rate notes the chance to exchange them for a mix of cash and new
notes. [ID:nB485477]

SHAFTESBURY (SHB.L)

Laxey Partners, the activist investor, is considering the future of its 130
million pounds shareholding in Shaftesbury after the company asked investors for
more cash to fund acquisitions last month, the Financial Times reported.

STANDARD CHARTERED (STAN.L)

The Asia-focused bank has hired four banks to lead manage the sale of
dollar-denominated perpetual hybrid bonds, a source close to the deal said on
Thursday. [ID:nHKG259109]

ELAN (ELN.L) (ELN.I)

Elan Corp expects to conclude a strategic transaction "in the near term",
after talking over the past few months with a number of the global players in
pharmaceuticals and big biotechnology, the company's chief executive said.
[ID:nN10455683]

HSBC (HSBA.L)

The Mexican unit of HSBC bank earned a failing grade in a recent study
looking at credit card transparency, a consumer watchdog said. [ID:nN10474623]

SAINSBURY (SBRY.L)

Justin King, chief executive of Sainsbury, has taken home more than 11
million pounds in pay over the past two years as reward for hitting his targets
in the supermarket chain's three-year turnaround plan, the Financial Times said.

BHP BILLITON (BLT.L)

BHP Billiton has suspended operations at an Australian nickel mine after a
rock fall on Wednesday trapped a mine worker about 1,000 metres underground.
[ID:nSYD476484]

HOME RETAIL GROUP (HOME.L)

The retailer is due to issue its trading update.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Dominic Lau; editing by Mike Nesbit)