LONDON, Sept 8 (Reuters) - Britain's FTSE 100 .FTSE is seen opening flat
to slightly higher on Tuesday by financial bookmakers, as investors pause for
breath after the previous session's hefty gains and await the reopening of U.S.
markets after a holiday.
The FTSE 100 .FTSE is seen opening flat to 0.1 percent higher after
closing at an 11-month high at 4,933.18 on Monday, spurred by strong gains in
confectionery group Cadbury CBRY which rejected a $16.7 billion bid from U.S.
group Kraft Foods (KFT.N).
Wall Street was closed on Monday due to the Labor Day holiday.
Spot gold XAU= touched $997.20 an ounce, its strongest since February,
with both simmering economic worries and longer term inflation concerns driving
gains while gold futures GCZ9 hit $1,000 an ounce for the first time in six
month.
On the economic front, a survey by the British Retail Consortium showed UK
retail sales fell on the year last month for the first time since May as
cost-conscious consumers refrained from splashing out on non-essential
items.[ID:nLAG003730]
UK industrial and manufacturing output figures are due at 0830 GMT while
across the Atlantic, U.S. employment trends in August will be the focus at 1400
GMT.
* GLOBAL MARKETS-Gold futures hit $1,000, Asia shares rise [ID:nSP506640]
* Nikkei hit by yen but JVC, Showa Shell climb [ID:nT149463]
* Yen rises, Aussie pauses near 1-year high [ID:nT90799]
* Oil rises above $68 ahead of OPEC, inventory data [ID:nSP505483]
* PRECIOUS-Gold futures hit $1,000/oz as investor [ID:nSP480383]
* METALS-Copper eases, China data eyed [ID:nMAN505778]
UK stocks to watch on Tuesday are:
CADBURY (CBRY.L)
Kraft Foods (KFT.N) said it was intent on pursuing Britain's Cadbury, with
analysts saying North America's biggest food group might have to raise its 10.2
billion pound ($16.7 billion) offer by up to 40 percent after shares in the
world's No.2 candy and chocolate maker increased by almost half on news of the
approach. The company's biggest institutional shareholder, Legal & General
Investment Management, said in a statement that it thought the approach
materially undervalued Cadbury, and supported management in opposing the deal.
[ID:nL7524247]
VODAFONE (VOD.L), MOBILE TELECOMS
Deutsche Telekom AG (DTEGn.DE) and France Telecom (FTE.PA) say they plan to
merge T Mobile UK and Orange in a 50-50 joint venture company, presenting a
challenge to Vodafone. [ID:nWEA9794]
ROYAL BANK OF SCOTLAND (RBS.L)
The lender is to halve the fees levied on overdrawn customers, the Financial
Times reported. Overdraft charges will be cut to 15 pounds per day from the
beginning of October, while the fee for returning a cheque, direct debit or
standing order will be cut from 38 pounds to five pounds, the newspaper said.
TESCO (TSCO.L)
The supermarket chain has said that it will continue to invest in the growth
of its U.S.-based Fresh & Easy store chain, despite having previously stated
that it had put the second stage of its expansion into Northern California on
hold due to the economy, the Financial Times reported. However, Tesco has
continued to add to the 50 sites it has acquired -- including reportedly paying
$3.75 million for two plots in the East Bay area, the newspaper said.
BURBERRY (BRBY.L)
The luxury goods group will replace Thomson Reuters TRIL.L in the FTSE 100
index after the news and financial data company group delists from London, the
index compiler said on Monday. [ID:nL752160]
BANKS
The Competition Commission's seven-day ban on the sale of payment protection
insurance has been challenged by Barclays(BARC.L) and Lloyds Banking
Group(LLOY.L), who claim that there is not enough evidence of misselling of the
controversial insurance to warrant a ban, the Guardian reported.
FIRST GROUP (FGP.L)
Greyhound, which is owned by the Scottish transport operator FirstGroup, has
been accused of bullying the provinces of Manitoba and Ontario in Canada after
it demanded a government subsidy of at least 15 million Canadian dollars to
cover losses of less popular routes going through isolated areas, the Guardian
reported.
ASHTEAD GROUP PLC (AHT.L)
The equipment hire company reports first quarter earnings.
DS SMITH PLC (SMDS.L)
The paper and packaging group releases a trading update.
TODAY'S UK PAPERS
> Financial Times [PRESS/FT]
> Other business headlines [PRESS/GB]
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(Reporting by Harpreet Bhal)
