UK Stocks — Factors to watch on Friday Dec 10

LONDON, Dec 10 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) is seen gaining 9-10
points at the open on Friday, following strength on Wall Street, as optimism
firms that the global economy is on track to recover steadily in 2011.

The blue-chip index is seen gaining around 0.2 percent after it rose 13.43
points or 0.2 percent to close at 5,807.96 on Thursday.

Equities have been on a rising trend since the start of this month as
concerns about a European debt crisis have receded.

These problems have not disappeared but investors seem more confident they
will not cause serious damage to markets.

“Whilst concerns about nations on the periphery still exist, they have not
been able to dent the trend of improving economic data from Europe’s larger
nations, in particular Germany,” said Jonathan Sudaria, a night dealer at
Capital Spreads.

The U.S. benchmark S&P 500 index (.SPX: ) closed at a two-year high on
Thursday, helped by data showing first-time claims for jobless benefits fell
more than expected last week. [ID:nLDE6B81IS]

Investors will watch production data for November at 0930 GMT. Input prices
are forecast to have risen again, putting pressure on manufacturers to consider
price rises to protect their margins.

PPI output is forecast to rise 0.4 percent on the month, up from 0.6 percent
for the previous month.

* Nikkei edges lower, strong SQ prompts profit-taking [ID:nTOE6B901R]

* Banks lead Wall St higher; Nasdaq up for 7th day [ID:nN09270810]

* Euro limps off lows but seen vulnerable [ID:nTOE6B9007]

* TREASURIES-Gain in Asia as market settles after selloff [ID:nL3E6NA079]

* Copper rallies above $9,000/t after strong China imports [ID:nL3E6NA049]

* Gold steady on dollar, Ireland woe; choppy range seeen [ID:nL3E6NA035]

* Japan stocks slip but set to outperform Asia in week [ID:nL3E6NA02N]

TODAY’S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

UK stocks to watch on Friday are:

DIAGEO (DGE.L: )

The drinks company is in early-stage “exploratory” talks to buy Turkish
spirits company Mey Icki in a deal valued at up to $2.5 billion, The Wall Street
Journal reported on Thursday. [ID:nN09266550]

RIO TINTO (RIO.L: )

The miner has notified Chinese steel mills that it will raise contract iron
ore prices by 7.6 percent in the first quarter of 2011, two sources told Reuters
on Friday. [ID:nTOE6B9054]

HERITAGE OIL (HOIL.L: ), PREMIER OIL (PMO.L: )

Heritage Oil was subject to speculation that they were subject to takeover
interest, newspapers reported with Malaysian Petronas and China’s Sinopec touted
by the Daily Mail and Daily Express respectively.

The Express market report said, citing traders, in a further twist that
Sinopec could also be casting an eye over another mid cap E&P company, Premier
Oil.

COBHMAM (COB.L: )

Cobham’s recent share price weakness has left it vulnerable to a predatory
approach from the likes of America’s Northrop Grumman and Italy’s Finmeccanica,
the Daily Express Market report, said.

ASSOCIATED BRITISH FOODS (ABF.L: )

The food producer holds its AGM.

(Reporting by Simon Falush)

UK Stocks — Factors to watch on Friday Dec 10