UK Stocks - Factors to watch on May 16

LONDON, May 16 (Reuters) - Britain's FTSE 100 index .FTSE is seen opening
6-8 points higher on Friday, according to financial bookmakers, having closed up
35.8 points, or 0.6 percent at 6,251.8 in the previous session.

Sentiment is expected to be buoyed by a strong session in the United States
overnight when the S&P 500 rose to its highest close since January, as a
pullback in oil prices eased concerns about inflation and a battle to control
Yahoo (YHOO.O: Quote, Profile, Research, Stock Buzz) helped the tech sector.

Asian markets also gained ground on Friday.

Also on the agenda, the UK's biggest banks are preparing to swap 80-90
billion pounds of mortgage-backed assets for Treasury bills with the Bank of
England, nearly twice as much as the central bank originally envisaged, the
Financial Times reported. The scheme was put in place to unblock the
bank-lending market.
On a relatively quiet day for corporate earnings, traders are likely to pay
close attention to numbers due from British Airways (BAY.L: Quote, Profile, Research, Stock Buzz).

"We're looking at a positive start to the week's final session although
London looks set to lag slightly behind the other major indices simply as a
result of the comparatively strong finish seen last night," said one trader.

On the economic front, U.S. housing starts for April and the preliminary
University of Michigan data for May will both be watched for further economic
clues.

* US STOCKS-Oil's falls, techs' gain drive stocks higher [ID:nL1630401]

* Oil near $125 on heating oil supply strain [ID:nSP206543]

* Asian stocks rise as dollar holds its ground [ID:nSP5173]

* FOREX-Dollar dithers vs yen, off two-month high [ID:nT166590]

* TREASURIES-Bonds gain on soft manufacturing, jobs data [ID:nL1631682]

UK stocks to watch on Friday are:

BHP BILLITON (BLT.L: Quote, Profile, Research, Stock Buzz) (BHP.AX: Quote, Profile, Research, Stock Buzz)

Shares in BHP Billiton, the world's largest miner, rose more than 4 percent
to a record in Australia on Friday, amid fresh speculation that Chinese
interests were looking to build a stake in the group. [ID:nSYD115459]

ROYAL BANK OF SCOTLAND (RBS.L: Quote, Profile, Research, Stock Buzz)

Warren Buffett, the world's richest man, will not join the bidding process
for Royal Bank of Scotland's insurance operations, it was revealed on Thursday,
the Independent reported.

PRUDENTIAL (PRU.L: Quote, Profile, Research, Stock Buzz)

Prudential is believed to be among the potential bidders for the seven
billion pound with-profit fund of troubled mutual Equitable Life, the Financial
Times reported. According to sources familiar with the situation, Pru has yet to
decide whether its interest is in all or parts of the fund, having just taken on
1.7 billion pounds of with-profit annuities from Equitable, the paper added.

VODAFONE (VOD.L: Quote, Profile, Research, Stock Buzz)

Deutsche Bahn [DBN.UL] has agreed to sell its stake in Vodafone's German
fixed-line business Arcor to Vodafone for around 330 million euros ($512
million), the Financial Times Deutschland newspaper reported on Thursday.
[ID:nL1513596]

BRITISH ENERGY (BGY.L: Quote, Profile, Research, Stock Buzz)

EDF (EDF.PA: Quote, Profile, Research, Stock Buzz) faces an almost certain referral to the competition authorities
if it goes ahead with its bid for British Energy, reported the Daily Mail.

ROYAL DUTCH SHELL (RDSa.L: Quote, Profile, Research, Stock Buzz)

Shell said on Thursday it is increasing production at its 72,000 barrel a
day Sarnia, Ontario, refinery after a week of unplanned maintenance on one of
the units.

BP (BP.L: Quote, Profile, Research, Stock Buzz)

The unknown brokerage disrupting BP's giant Russian oil venture TNK-BP with
a lawsuit does not answer the telephone numbers posted on its website and has no
offices at the address given in its court filing. [ID:nL15809560]

HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz)

HBOS on Thursday sold $2 billion in 10-year subordinated notes, said
International Financing Review. [ID:nN15321710]

TESCO (TSCO.L: Quote, Profile, Research, Stock Buzz)

Standard & Poor's Ratings Services said today it lowered to 'A'
from 'A+' its long-term corporate credit and senior unsecured debt ratings on
U.K.-based retailer Tesco. [ID:nWNA0939]

Also, billionaire Tom Hunter, is to ask Tesco to buy out his stake in the
Dobbies garden centre chain after a judge rejected his attempts to block a
refinancing deal for the firm, reported the Guardian newspaper.

XSTRATA (XTA.L: Quote, Profile, Research, Stock Buzz)

Mick Davis, chief executive of the mining group, has cashed in on the
company's success with a pay-out of more the 100 million pounds, reported the
Daily Mail.

NATIONAL GRID (NG.L: Quote, Profile, Research, Stock Buzz)

National Grid would look at a move into Germany by buying E.ON's EONG.DE
electricity transmission business, National Grid's chief executive said, but
added that there was a "lot to do" before it could think of making an offer, the
Financial Times reported.

WPP (WPP.L: Quote, Profile, Research, Stock Buzz)

Yahoo (YHOO.O: Quote, Profile, Research, Stock Buzz) and WPP have forged a multi-year strategic partnership.

[ID: nWEN5792]

BRITISH AIRWAYS (BAY.L: Quote, Profile, Research, Stock Buzz)

The company is due to announce its preliminary final earnings.

GLAXOSMITHKLINE (GSK.L: Quote, Profile, Research, Stock Buzz)

The company is due to hold a media briefing and conference call.

LADBROKES (LAD.L: Quote, Profile, Research, Stock Buzz)

The firm is due to issue a trading update and hold its annual general
meeting.

PREMIER FOODS (PFD.L: Quote, Profile, Research, Stock Buzz)

The firm is due to hold its annual general meeting.

COMPUTACENTER (CCC.L: Quote, Profile, Research, Stock Buzz)

The firm is due to issue a trading update and hold its annual general
meeting.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Michael Taylor)