UK Stocks -- Factors to watch on July 21

LONDON, July 21 (Reuters) - Britain's FTSE 100 .FTSE index
is seen opening flat on Monday, according to financial
bookmakers, after the previous session's sharp gains and as oil
prices traded well off their record highs.

The commodity-heavy UK benchmark index closed up 90.1
points, or 1.7 percent at 5,376.4 on Friday, bringing the rise
for the week to 1.9 percent and marking the first weekly
increase in nine weeks at the end of the longest losing stretch
since late May 2002.

HBOS HBOS.L shares will likely be in focus after the
Financial Times said as much as 3.6 billion pounds worth of
stock could be offloaded on to the stock from Monday, adding
that the mortgage lender's rights issue had flopped.

Pharmaceuticals may also be in the spotlight after Swiss
drugmaker Roche Holding AG (ROG.VX) offered to acquire all
outstanding shares in its U.S. partner Genentech Inc DNA.N for
$43.7 billion. [ID:nL21363720]

Investors will shift their attention to results from Bank of
America (BAC.N), Apple (AAPL.O) and Merck & Co (MRK.N) later in
the day for further market direction.
In the UK, the economy is heading into recession and
interest rates should fall to "well below" their current 5
percent, Bank of England policymaker David Blanchflower was
quoted as saying in a newspaper interview. [ID:nN20348513]

A survey by property website Rightmove showed asking prices
for homes in England and Wales fell two percent year-on-year in
July, the first annual fall since the series began six years
ago. [ID:nL18881500]

Meanwhile, the Financial Times said British finance minister
Alistair Darling was planning to scrap proposed reforms to
taxation of foreign profits. [ID:nL20239423]
* Asia stocks leap, but financial fears simmer [nL21353340]
* Techs sink as Google, Microsoft miss the mark [ID:nN18477510]
* Dlr lower amid jitters about US bank results [nSYD210298]
* Oil up over $1 on Iran talks, Mexico Gulf storm [nSYD253567]
* Rising oil lifts gold, platinum near 11-week low [nSP59761]

UK stocks to watch on Monday are:

HBOS HBOS.L

As few as 10 perecnt of HBOS shareholders have signed up to
a 4 billion pound ($8 billion) fundraising by the British bank,
newspapers said on Sunday, without citing sources.
[ID:nL20678998]

HSBC (HSBA.L)

HSBC has held talks with China's main sovereign investment
fund over a potential investment in Europe's biggest bank, the
Sunday Telegraph reported, without citing sources.
[ID:nL20681088]

BHP BILLITON (BLT.L), RIO TINTO (RIO.L)

The chairman of BHP Billiton has issued a veiled warning to
the Australian government that its natural resources could end
up being owned by the Chinese if regulators do not allow the
miner to take over Rio Tinto, the Daily Telegraph said.

NEXT (NXT.L), HOME RETAIL (HOME.L), DEBENHAMS (DEB.L),
BRITISH LAND (BLND.L), LAND SECURITIES (LAND.L)

Some of the biggest names on the High Street, including
Argos, Boots, Next and Debenhams, are heading for a showdown
with landlords in a bid to force the biggest review of rents in
decades, the Daily Mail said.

But the newspaper said key landlords -- British Land, Land
Securities, Hammerson (HMSO.L) and Liberty International (LII.L)
as well as pension funds at Prudential (PRU.L) and Legal &
General (LGEN.L) -- are facing their own problems because of the
credit crunch and housing downturn, and will do all they can to
resist.

ROYAL DUTCH SHELL (RDSa.L) (RDSb.L)

The oil major has agreed to sell its stake in the
2.5-billion-pound ($5 billion) London Array offshore wind
project to Denmark's DONG Energy and Germany's E.ON EONG.DE,
the Sunday Times said. [ID:nL20684109]

AVIVA (AV.L)

Spain's biggest bank, Santander (SAN.MC), is in talks to
sell its insurance business for up to 4 billion euros, marking
the second unit it has put on the block after a bid for British
bank Alliance & Leicester ALLL.L, Spanish media reported on
Saturday. [ID:nL19616491]

Santander has approached insurance firms such as France's
AXA (AXAF.PA), Germany's Allianz (ALVG.DE), the UK's Aviva
(AV.L) and Italy's Generali (GASI.MI) over a possible sale,
newspaper such as El Pais and ABC reported.

BP (BP.L)

The row surrounding BP's Russian joint venture intensified
last night after it emerged that one of its billionaire partners
had written a letter to try to prevent the chief executive of
TNK-BP from obtaining a visa to remain in the country, the Daily
Telegraph said.

Separately, the Guardian said TNK-BP will scrap a $1.8
billion dividend to boost investment in the troubled business.

TESCO (TSCO.L)

Tesco's American retailing venture could become an
alcohol-free zone in the state of California after being caught
up in a move by a politician who wants to reduce alcoholism
among young people in the state, the Daily Telegraph said.

PERSIMMON (PSN.L)

The housebuilder has put strain on already fraught
relationships with its subcontractors by calling on them to
accept a second cut in rates this year, the Daily Telegraph
said.

XSTRATA (XTA.L)

An armed gang attacked and set fire to a mine exploration
rig at the giant Philippines Tampakan copper and gold prospect
held jointly by Xstrata Copper and Australia-listed Indophil
Resources NL (IRN.AX), Indophil said on Monday. [ID:nSYD251683]

GLAXOSMITHKLINE (GSK.L)

GlaxoSmithKline's Australian partner on flu drug Relenza,
Biota Holdings Ltd (BTA.AX), has settled its damages claim
against Europe's biggest drugmaker for A$20 million ($19
million), Biota said on Monday. [ID:nSYD234970]

SHIRE (SHP.L)

Shire, the pharmaceticals company that shifted its domicile
to Ireland this spring, has made significant tax savings by
moving its headquarters away from the UK ahead of controversial
new tax legislation introduced earlier this year, the Financial
Times said.

LUMINAR (LMR.L)

Britain's biggest nightclub operator said on Saturday it was
interested in a tie-up between its 3D Entertainment venture and
Regent Inns (REGI.L), but that Regent had declined to enter
talks. [ID:nL1920684]

UBC MEDIA (UBC.L)

The company is due to issue its preliminary results.

IG GROUP (IGG.L)

The spread-betting firm is due to issue its preliminary
results.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Dominic Lau)