UK Market News

Monday July 27, 07:14 AM
UK at a Glance-UK Stocks -- Factors to watch on July 27

LONDON, July 27 (Reuters) - Britain's FTSE 100 index is seen opening 38-53 points, or as much as 1.2 percent, higher on Monday, according to financial bookmakers, extending the winning run into a record-equalling 11 sessions, tracking

gains in Asia on hopes of a further recovery in corporate earnings. The FTSE 100 index closed 16.81 points higher on Friday at 4,576.61, a 6-1/2 month closing peak and taking its winning run to ten straight sessions. The UK blue-chip index has risen almost 11 percent over the past two weeks on reassuring U.S. corporate earnings results and is up 32 percent since a trough in March. House prices in England and Wales were flat for a third consecutive month in July, causing the year-on-year decline to slow to 7.7 percent from 8.7 percent, property data company Hometrack said on Monday. A broad-based recovery in house prices was still a long way off, however, with rising unemployment and a shortage of mortgage finance standing in the way, Hometrack said in its report. Britain's economy will grow just 0.5 percent next year and 1.5 percent in 2011, meaning it will take far longer to recover than in previous recessions, business advisory firm Deloitte said in its latest quarterly review. With no other domestic indicators due for release on Monday, June U.S. new homes sales numbers will be the main macro focus, with the consensus forecast for a rise of 0.36 million, up from 0.342 million in May. * GLOBAL MARKETS-Asian stocks rally persists; earnings eyed * Nikkei (news) hits 6-week high on hopes for corp earnings * Nasdaq (NASDAQ: news) snaps 12-day run; Dow, S&P 500 edge up * FOREX-Major currencies steady, US GDP to take centre stage * TREASURIES-Edge down as regional stocks rise * Oil rises towards $69, economic optimism supports * PRECIOUS-Gold inches up on weak dlr, ETF holdings steady * METALS-Shanghai copper extends gains to third day, LME up UK stocks to watch on Monday are: PEARSON (LSE: PSON.L - news) The publishing group reports first-half results. WOLSELEY (LSE: WOS.L - news) The plumbing supplies firm issues a trading update. NATIONAL GRID (LSE: NG.L - news) The power generator issues a trading update. VEDANTA RESOURCES (LSE: VED.L - news) The miner holds its annual general meeting. BANKS Britain's finance minister, Alistair Darling, is expected to meet with some of the major banks on Monday to express his concern at borrowing costs, especially for small and medium-sized companies. REXAM The drinks can maker, saddled with net debt of 2.7 billion pounds ($4.5 billion), said on Sunday it was considering a rights issue in an attempt to preserve its investment grade credit rating. AVIVA A consortium headed by insurance giant Aviva (LSE: AV.L - news) has proposed the launch of a new investment fund with up to one billion pounds to buy and rent out new-build residential property in partnership with property consultancy CB Richard Ellis (NYSE: CBG - news) and an unnamed major U.S. residential manager, the Financial Times said on Monday. NATIONAL EXPRESS (LSE: NEX.L - news) The transport group is set to reject a takeover bid from Spain's Cosmen family and CVC and will argue at its interim results on Thursday that its plans for an independent future offer better value than either of the preliminary approaches it has received, the Financial Times said on Monday. STAGECOACH, NATIONAL EXPRESS Stagecoach is considering entering the race for rival National Express, trumping an expected bid from Spain's Cosmen family and private-equity firm CVC, according to The Sunday Times. EASYJET The low-budget carrier will tell investors that its public dispute with its founder, Sir Stelios Haji-Ioannou, over the company's expansion plans has been resolved when it issues a trading statement on Wednesday, the Times (1832.HK - news) said on Monday. JJB SPORTS (LSE: JJB.L - news) The sports retailer is considering hiring back Tom Knight, its former chief executive, to help it negotiate the slump in its sales and the effects of its recent bitter feud with Mike Ashley, the founder of Sports Direct (LSE: SPD.L - news) , The Times said on Monday. LLOYDS BANKING GROUP (LSE: LLOY.L - news) The part-state-owned bank could become the latest addition to the list of big UK companies to axe their final pension for existing employees, The Independent said on Monday. SAINSBURY The British grocer started selling non-food products on the Internet on Sunday as part of its growth strategy centred on expanding beyond its core grocery offering. BT GROUP (LSE: BT-A.L - news) BT Group expects to be able to offer the full Sky Sports Premier League soccer package from BSkyB (LSE: BSY.L - news) at a reduced price to BT Vision customers by the start of the 2010-11 season, according to a report in the Independent. SABMILLER The brewing giant said on Sunday that Kenya's East African Breweries Limited's plan to end a deal with Tanzania Breweries Limited and take a stake in a competitor was a breach of contract. INDEPENDENT NEWS & MEDIA A key shareholder in the Irish-based newspaper group, telecoms tycoon Denis O'Brien warned in an interview with the Sunday Times that the future of the indebted publisher hung in the balance as talks with lenders over a 200 million euro bond dragged on. ITV Internet entrepreneur Peter Dubens has emerged as a bidder for Friends Reunited, the social networking site bought by broadcaster ITV (LSE: ITV.L - news) in 2005 for 175 million pounds ($290 million), offering about 15 million pounds through his private equity firm Oakley Capital (LSE: OCL.L - news) , according to The Mail On Sunday. INSURERS Britain's biggest insurance companies could take on welfare state payments of about 17 billion pounds ($28.10 billion) to help ease public spending pressures, according to the Daily Telegraph. RYANAIR The Irish discount airline reports first-quarter adjusted net profit of 136.5 million euros, up 550 percent year-on-year, helped by a 42 percent reduction in fuel costs. FILTRONIC (LSE: FTC.L - news) The telecoms technology firm posts full-year results. WSP GROUP (LSE: WSH.L - news) The building and environmental consultancy posts first-half results. PACE The set-top box manufacturer reports first-half results. TOTAL SYSTEMS (LSE: TTS.L - news) The software and services group posts full-year results. DIALIGHT The smart metering group reports first-half results. CRANSWICK (LSE: CWK.L - news) The pork supplier holds its annual general meeting. TODAY'S UK PAPERS > Financial Times > Other business headlines (Reporting by Jon Hopkins; editing by Simon Jessop) Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News visit http://topnews.reuters.com Keywords: MARKETS BRITAIN FACTORS