UK Stocks -- Factors to watch on Nov 2

LONDON, Nov 2 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
15-18 points lower, or down as much as 0.4 percent on Monday, extending Friday's
falls following a hefty pre-weekend sell-off on Wall Street and declines in
Asia, signs investors are losing faith in the economic recovery.

The UK blue chip index closed 93.17 points or 1.8 percent lower on Friday at
5,044.55, and notched up its largest weekly fall, at 3.8 percent, since March.

The benchmark index fell 1.7 percent overall in October, the first monthly
drop since June but is still up about 46 percent since its March low.
Investors will be focused ahead this week to the latest Bank of England
Monetary Policy Committee meeting, decisions from which are due on Thursday,
with no change to UK interest rates expected but an increase in the bank's
quantitative easing policy anticipated. [ID:nLU602849]

Data released overnight showed British house prices fell at their slowest
annual rate since June 2008 in October, dropping 4.2 percent, due to an ongoing
lack of housing for sale after the credit crunch, property data company
Hometrack said on Monday. [ID:nLU602759]

The other domestic data focus on Monday will be on October's CIPS
manufacturing PMI report, with a reading of 50.0 forecast, up from 49.5 in
September.

Meanwhile, the U.S. ISM report for October, plus September pending homes
sales and construction spending numbers should attract attention in the
afternoon.

HSBC's China Purchasing Managers' Index (PMI) rose to an 18-month high in
October of 55.4 from 55.0 in September, pointing to sustained strength in the
country's fast manufacturing sector. [ID:nBJC002380]

The banking sector will be in the spotlight after CIT Group CIT.N, a
U.S. lender to hundreds of thousands of small and medium-sized businesses, filed
for bankruptcy on Sunday, as the global financial crisis left it unable to fund
itself and the recession hit its loans. [ID:nN01408863]

* GLOBAL MARKETS-Asia share drop limited after Wall St hit [ID:nL2256589]

* US STOCKS-Wall St tumbles on recovery jitters, financials [ID:nN30437359]

* Nikkei at 3-week closing low, consumer lenders up [ID:nTKW006631]

* FOREX-Yen cuts earlier gains as it slides vs Aussie [ID:nT118710]

* TREASURIES-Slip in Asia, U.S. manufacturing data eyed [ID:nT65981]

* Oil rebounds above $77, China PMI data supports [ID:nSYD482190]

* PRECIOUS-Gold steadies above $1,040/oz, ETF holdings dip [ID:nT81862]

* METALS-Shanghai copper opens 1.6 pct lower, chases LME [ID:nSP482044]

UK stocks to watch on Monday are:

LLOYDS BANKING GROUP (LLOY.L)

The bank will attempt to raise 7.5 billion pounds ($12.3 billion) capital by
offering existing bond holders the chance to exchange their bonds for riskier
but higher yielding investments that could convert into equity, the Financial
Times said on Monday. [ID:nL2303369]

Also, the British Treasury will not allow Lloyds Banking Group (LLOY.L) to
break its promise to lend an extra 14 billion pounds to homes and businesses,
which the bank said it would do when it joined the government's asset protection
scheme, The Observer said.

ROYAL BANK OF SCOTLAND (RBS.L)

The UK government will unveil plans this week to spend 30 billion pounds
($49.3 billion) buying further shares of rescued banks Royal Bank of Scotland
(RBS.L) and Lloyds (LLOY.L), The Daily Telegraph newspaper reported on Monday.
[ID:nSP1641]
Also, RBS may have to accept significant cutbacks in its investment banking
division if the bank stands by its desire to keep U.S. retail bank Citizens,
the Daily Telegraph added.

BARCLAYS (BARC.L)

Barclays is pursuing aggressive expansion of its retail and investment
banking operations in Russia as the investment climate improves in the region,
The Independent said on Monday.

RIO TINTO (RIO.L)

Rio Tinto, the world's second-largest iron ore miner, said Chinese demand
for iron ore remains strong and major producers are unlikely to meet all the
demand. [ID:nWNAS7645]

CADBURY (CBRY.L)

Kraft (KFT.N) looks set to make a formal offer for Cadbury as a result of
improved third-quarter earnings, but analysts believe it will not improve on its
indicative 10.2 billion pound cash and paper bid of 745p a share, the Daily
elegraph said on Monday.

CABLE & WIRELESS (CW.L)

Plans to demerge Cable & Wireless (CW.L) are being hindered by disagreements
over bonus payments. Its international division wants to delay the move because
if there is no significant increase in its share price, its members will miss
out on an estimated 30 million pounds, The Daily Telegraph said on Monday.

BRITISH AIRWAYS (BAY.L)

Cabin crew workers at the airline are to hold a mass meeting on Tuesday to
discuss new employment contracts they think are "unfair and unworkable", The
Guardian said on Monday.

BAE SYSYTEMS (BAES.L)

BAE will bid this week for the first stage of a 4 billion pound ($6.6
billion) contract to build armored reconnaissance vehicles for the British army,
the company said on Sunday. [ID:nL1204213]

NATIONAL EXPRESS (NEX.L)

The Cosmen family has denied a report in the Mail on Sunday that Jorge
Cosmen, deputy chairman of National Express (NEX.L), is set to resign.
[ID:nL135406]

RYANAIR (RYA.I)
The Irish airline Ryanair posted an 80 percent rise in first-half profit and
said on Monday it could reverse its long-standing strategy of rapid growth and
distribute cash to shareholders instead. [ID:nDUB003076]

GLAXOSMITHKLINE (GSK.L)

According to analysts, GlaxoSmithKline may seek to expand in India or China
as it takes its acquisition strategy to emerging markets, the Mail on Sunday
said.

RANK GROUP (RNK.L)

The chief executive of Rank Group, Ian Burke, has written to the Treasury
appealing for changes to gambling tax, requesting the newly raised bingo tax be
cut from 22 percent to 15 percent and that poker games should be taxed less
stringently than casino games, the Mail on Sunday said.

QUINTAIN ESTATES (QED.L)

The real estate developer will announce plans this week to raise up to 180
million pounds ($298 million) of fresh funds, the Sunday Times reported.
[ID:nL1168591]

CHLORIDE GROUP (CHLD.L)

The power protection firm posts first-half results.

TELECITY (TCY.L)

The data centre operator issues a trading update.

(Reporting by Jon Hopkins)