UK Stocks -- Factors to watch on June 22

LONDON, June 22 (Reuters) - Financial bookmakers diverge on
their calls for Britain's FTSE 100 .FTSE index on Monday, seeing it down 1
point or up as much as 11 points as a late fall back on Wall Street on Friday is
countered by gains in Asia and consolidation moves among heavyweight miners.

The UK blue chip index closed 65.07 points, or 1.5 percent higher on Friday
at 4,345.93 buoyed by a recovery from commodity issues after recent falls.

Strength in commodity stocks is expected to carry over to Monday with news
that Xstrata (XTA.L) is seeking a merger of equals with Anglo American (AAL.L)
likely to give the sector a shot in the arm, although weakness in metals and oil
prices could temper the gains. [ID:nLL443532]

Meanwhile, asking prices for homes in most of Britain fell in June after
four months of rises, but the annual rate of decline moderated to an eight-month
low, property website Rightmove said on Monday.

Average asking prices of properties new to the market fell 0.4 percent this
month, after rising 2.4 percent in May, Rightmove said. The annual rate of
decline eased to 5.5 percent, its lowest since last October, from 6.2 percent in
May. [ID:nLAG003522]

No other important UK or U.S. economic data are due to be unveiled on
Monday, indeed little of interest is due domestically all week, so the main
macro focus will be focused across the Atlantic, most notably on the latest
two-day Federal Reserve Open Market Committee meeting which begins on Tuesday.

With interest rates at rock-bottom, no changes are anticipated from the Fed,
though any comments on the progress of quantative easing moves and signs of
recovery in the economy would be welcomed by the market.

The FTSE 100 index will have a new complexion on Monday as the latest
quarterly resuffle takes effect, with London Stock Exchange (LSE.L), 3i Group
(III.L), and Wolseley (WOS.L) all making a return to blue chip status after one
quarter in the mid caps.

* GLOBAL MARKETS-Asia stocks tick up; caution ahead of Fed [ID:nHKG17581]

* Nikkei edges higher, defensive shares give boost [ID:nT326806]

* Wall St Wk Ahead: Stocks eye Fed, home sales [ID:nN21467816]

* FOREX-Yen gains as uncertainty stalks market ahead of Fed [ID:nT167979]

* TREASURIES-Steady as investors brace for auctions, Fed [ID:nT93504]

* Oil falls towards $69, bearish US gasoline mkt weighs [ID:nSYD476341]

* Gold hovers around $933/oz, ETF steady [ID:nT92186]

* METALS-Copper stretches losses on China demand woes [ID:nMAN476841]

UK stocks to watch on Monday are:

XSTRATA (XTA.L), ANGLO AMERICAN (AAL.L)

Xstrata wants talks with mining rival Anglo American about a proposed merger
of equals worth about $68 billion, seeking increased scale and cost synergies,
Xstrata said on Sunday. Anglo is likely to resist the attempt by Xstrata to
forge a larger mining group better able to compete with bigger competitors,
sources said. [ID:nLL443532]

AVIVA (AV.L)

National Australia Bank Ltd (NAB.AX) will pay $660 million for most of
Aviva's Australian businesses to become the country's dominant investment
platform provider and insurance underwriter. [ID:nSYD465038]

ROYAL BANK OF SCOTLAND (RBS.L)

RBS is poised to break up its Asian business after its attempted auction hit
problems, the Sunday Times reported. [nLL450062]

Also, the bank has secured shareholder backing for a long-term incentive
plan for the bank's chief executive Stephen Hester, The Financial Times said on
Monday.

And, RBS's decision to spend 300,000 pounds on corporate hospitality at
Wimbledon has been criticised by many, particularly following the bank's
shedding of thousands of jobs and its partial nationalisation, The Times said on
Monday.

CENTRICA (CNA.L), VENTURE PRODUCTION (VPC.L)

Centrica is prepared to go hostile with its 850 pence a share bid for oil
and gas group Venture Production, which is holding out for 950 pence, the
Independent on Sunday reported. [nLL458464]

BRITISH SKY BROADCASTING (BSY.L)

The failure by beleaguered Irish firm Setanta to meet a 10 million pound
Premier League payment deadline will leave broadcast groups such as BSkyB vying
to acquire the media rights to 46 Premier League games, The Guardian said on
Monday.

MARKS & SPENCER (MKS.L)

The retailer is committed to its succession plan and will start looking for
a new chief executive next year, a spokeswoman said on Sunday, in response to
media reports at the weekend. [ID:nLL426171]

LLOYDS BANKING GROUP (LLOY.L)

The bank has acted in anticipation of a sharp rise in the number of
struggling companies on its loan book by more than trebling the size of its
corporate restructuring division, the Mail on Sunday said.

BRITISH AIRWAYS (BAY.L)

The founder of Virgin Airlines, Sir Richard Branson, has stated that the
government should not take any action to save the struggling rival airline
British Airways and his own airline could easily take on some of BA's slots at
Heathrow, The Independent said on Monday.

Also, BA has clashed with its pension trustees over a higher-risk investment
strategy that it believes has exacerbated the deficit in the fund, now thought
to top 3 billion pounds, The Daily Telegraph said.

INDEPENDENT NEWS AND MEDIA (INME.L)

The owner of The Independent newspaper is considering a rights issue to
raise about 100 million euros, according to newspaper reports.

MARSTON'S (MARS.L)

The pubs group said on Sunday it would invest 140 million pounds to build 60
pubs starting this summer, which would create more than 2,500 jobs in England
and Wales. [ID:nLL483872]

YELL GROUP (YELL.L)

John Condron, chief executive of Yell has waived a bonus of 935,000 pounds
after a programme of 1,300 job cuts last year, The Daily Telegraph said on
Monday.

PUNCH TAVERNS (PUB.L)

Punch Taverns has been forced to admit that its suppliers are having
difficulty obtaining credit insurance because of the pub operator's substantial
debt burden, the Daily Telegraph said.

CATTLES (CTT.L)

Subprime lender Cattles is approaching two deadlines for convincing
bondholders and more senior creditors to agree to a "standstill" agreement, the
Financial Times said.

IMMUNODIAGNOSTIC SYSTEMS (IDH.L)

The diagnostic testing kits producer reports full-year results.

KEWILL SYSTEMS KWS.L

The software firm posts full-year results.

BRIXTON (BXTN.L)

The property group holds its annual general meeting.

CAPITAL & REGIONAL (CAL.L)

The property developer hosts its annual general meeting.

PINEWOOD-SHEPPERTON (PWS.L)

The firm studios group holds its annual general meeting.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Jon Hopkins)