LONDON, Oct 15 (Reuters) - Britain's FTSE 100 .FTSE is seen by financial
bookmakers as opening down as much as 1.7 percent on Wednesday after two days of
sharp gains as recession fears returned to the surface.
In a reminder of the dire state of the world economy, a senior U.S. Federal
Reserve official said the world's biggest economy already appeared to be in
recession.
The U.S government on Tuesday put aside its misgivings about state
intervention in the private sector and unveiled a plan to spend up to $250
billion on equity stakes in U.S. banks, joining a global effort to shore up the
financial system. [ID:nN14398017]
Investors will watch UK employment data at 0830 GMT for more clues on the
health of the UK economy as concerns grow that it is heading into a deep
recession.
Energy and mining stocks will be in the spotlight once again as metal prices
and crude CLc1 prices have fallen.
* US STOCKS-Wall St slips on recession woe, Intel up late [ID:nN14216646]
* Nikkei falls 1.2 pct on economy worry, Mazda drops [ID:nT252626]
* GLOBAL MARKETS-Asia stocks fall on global recession fear [ID:nLF604443]
* Yen gains broadly on global economic worries [ID:nT217066]
* TREASURIES-Rise in Asia, get respite after sell-off [ID:nT146172]
* Gold gains 1 pct as equities slip, platinum down [ID:nSP362044]
* Oil falls to $78 on recession, demand concerns [ID:nSIN362879]
UK stocks to watch on Wednesday are:
BANKS
Some of Britain's banks are urging the government to lift a ban on dividend
payments imposed as part of its 37 billion pound ($64.9 billion) bail-out of the
crisis-hit sector, newspapers reported on Wednesday. [ID:nLE490827]
The Independent said the government is considering a U-turn that would allow
Lloyds to pay dividends to shareholders while still taking advantage of its 37
billion pounds bank bailout scheme.
Separataely, the Daily Telegraph said shareholders who stumped up billions
of pounds in rights issues for Royal Bank of Scotland (RBS.L), HBOS HBOS.L and
Bradford & Bingley are exploring whether there are grounds for legal action
because they invested on the basis of what was stated in the prospectus.
HBOS HBOS.L, LLOYDS TSB (LLOY.L)
Eric Daniels, chief executive of Lloyds TSB, insisted the bank's takeover of
HBOS would go ahead on the existing terms, despite a 7 percent drop in Lloyds'
share price, the Daily Telegraph said.
BARCLAYS (BARC.L)
Barclays has clinched the backing of Qatar's state investment fund as it
races to raise an additional 6.5 billion pounds of capital, the Daily Mail said.
ROYAL BANK OF SCOTLAND (RBS.L)
John McFarlane is emerging as a strong internal candidate to become chairman
of the bank, taking over from Tom McKillop, who is leaving RBS, the Daily
Telegraph said.
INSURERS
The City watchdog is keeping a close eye on insurance companies as fears
grow they could be the next victims of the credit crunch, the Daily Mail said.
RIO TINTO (RIO.L)
The mining giant showed a 17 percent rise in third-quarter iron ore
production. [ID:nRIO]
TOBACCO STOCKS
Tobacco companies argued on Tuesday that a lower court in the U.S. erred in
finding they had conspired to lie about the dangers of smoking, while public
health groups urged an appeals court to force the companies to fund programs to
help smokers quit. [ID:nN14530791]
GLAXOSMITHKLINE (GSK.L)
Eye company Alcon Inc (ALC.N) said it expanded a licensing agreement with
GlaxoSmithKline for global opthalmic rights to cilomilast, a drug compound.
[ID:nBNG140498]
MARKS & SPENCER (MKS.L), SCOTTISH & SOUTHERN ENERGY (SSE.L)
The British retailer said it is preparing to expand into the household gas
and electricity supply market following a partnership with utility Scottish &
Southern Energy. [ID:nLF684763]
VEDANTA RESOURCES (VED.L)
Indian mining company Sterlite Industries (STRL.BO), a unit of Vedanata
Resources, has said it will not be able to close a $2.6 billion deal to buy U.S.
copper miner Asarco LLC out of bankruptcy, due to troubles in the credit
markets, an Asarco attorney said on Tuesday. [ID:nN14530773]
CADBURY (CBRY.L)
ING raised Cadbury to hold from sell
AUTONOMY (AUTN.L)
Autonomy releases its third quarter results
DIAGEO (DGE.L)
Diageo releases a trading statement
EXPERIAN (EXPN.L)
Experian releases a trading statement
FERREXPO (FXPO.L)
Ferrexpo releases its trading statement
TODAY'S UK PAPERS
> Financial Times [PRESS/FT]
> Other business headlines [PRESS/GB]
(Reporting by Simon Falush)
