UK Stocks — Factors to watch on Monday July 12

LONDON, July 12 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) index is seen opening
30 to 33 points higher, or up 0.6 percent on Monday, according to financial
bookmakers, building on last week’s strong rally in tandem with gains in Asia as
robust Chinese exports data helped boost sentiment about the global economy.

The UK blue chip index closed 27.49 points, or 0.5 percent higher on Friday
at 5,132.94, extending its winning streak into a fourth straight session and
notching up weekly gains of 6.1 percent.

Wall Street closed out its best week in a year on Friday, with U.S. stock
indexes ending near the day’s high, albeit in thin volume, as investors looked
ahead to what many expect will be a solid second-quarter earnings season,
kicking off this week with numbers from Alcoa (AA.N: ).

Asian stocks were higher on Monday, helped by optimism over the U.S.
earnings season, and after China revealed a bigger than expected trade surplus
in June, easing worries about a slowdown in the global economic recovery.

Chinese exports in June rose 43.9 percent from a year earlier, while crude
imports in the world’s second-largest energy user rose by a quarter to hit a
record high above 22 million tonnes, although copper imports data fell short of
expectations. [ID:nTOE669009] [ID:nTOE66900C]

On the domestic macro front, the final reading for British first-quarter GDP
will be closely watched on its release at 0830 GMT, with the data having been
delayed from the end of last month due to potential errors in the detailed
numbers.

The second estimate for Q1 gross domestic product, given in late May, was
revised to an increase of 0.3 percent, up from a rise of 0.2 percent in the
preliminary estimate, thanks to upward revisions in industrial production.

No important U.S. economic pointers are due for release on Monday.

* GLOBAL MARKETS-Japan’s Nikkei up, election loss ignored [ID:nSGE66B01E]

* Wall St marks best week in a year; earnings on tap [ID:nN09115728]

* Nikkei holds gains, eyes on U.S. earnings [ID:nTOE66B02I]

* FOREX-Yen dips, longs shed on Japan ruling party woes [ID:nTOE66B036]

* TREASURIES-Steady in Asia, bond auctions eyed [ID:nTOE66B039]

* Oil stays firm above $76 after China trade data [ID:nTOE66A03Y]

* PRECIOUS-Gold ticks lower but holds above $1,200 [ID:nSGE66B037]

* METALS-London copper down; China copper data disappoints [ID:nSGE66B02W]

UK stocks to watch on Monday are:

BP (BP.L: )

BP is in talks with U.S. oil and gas company Apache Corp (APA.N: ) and other
companies over potential asset sales, a source familiar with the situation said
on Sunday, as it weighs how to pay costs related to the Gulf of Mexico oil
spill. [ID:nN11156383]

Also, BP said on Sunday it is making progress on a new system to capture
almost all the oil spewing from its blown-out well in the Gulf of Mexico and a
relief well could finally plug the leak by early to mid-August. [ID:nN11145426]

BP is also preparing to unveil a $40 billion defence strategy at its
second-quarter results on July 27, The Daily Telegraph said on Monday.

And, China’s PetroChina (601857.SS: ) said it would “welcome” closer
cooperation with BP as the British oil giant tries to cover liabilities from the
Gulf of Mexico oil spill, The Financial Times said.

BHP BILLITON (BLT.L: )

The mining company has expressed interest in BP’s assets in the Gulf of
Mexico should the energy company be forced into a firesale as a result of the
Deepwater Horizon accident, The Times said on Saturday.

RIO TINTO (RIO.L: )

The miner is considering selling its Chapudi coal exploration assets in
South Africa as they will not yield coal suitable for the global market, a
source close to the company said on Sunday. [ID:nLDE66A06R]

HSBC (HSBA.L: )

HSBC chairman Stephen Green has said the likely structure of the planned
Basel III agreement on banking could risk “overly gold-plating” capital
requirements for investment banks, The Sunday Telegraph said.

BANKS

Kent Reliance Building Society is set to receive 50 million pounds ($75.8
million) from Flowers and Co to bolster its balance sheet and create a
springboard for the U.S. private equity firm to consolidate part of the sector.
[ID:E66A0B1]

Also, Lord Levene, chairman of the Lloyd’s of London insurance market, said
the public will be able to buy shares in Project New Bank, the bank branches
bidding vehicle that will be listed on the Alternative Investment Market to
raise an initial 50 million pounds, The Sunday Times said.

BT (BT.L: )

The telecommunications company is being taken to court by its pension scheme
trustees in a case that will determine how much of BT’s pensions liabilities
will be guaranteed by the state, The Mail on Sunday said.

MARKS & SPENCER (MKS.L: )

M&S has initiated an extensive market research programme in order to asses
the impact tax rises and austerity measures set out in the Budget will have on
customers, The Independent on Sunday said.

TAYLOR WIMPEY (TW.L: )

The UK’s third-largest house builder by market value is in talks with
lenders over a refinancing package that will enable the company to buy more
land, The Financial Times said on Monday.

DAILY MAIL & GENERAL (DMGOa.L: )

The publishing group plans to jettison Northcliffe, its regional newspaper
division, with talks having been held to offload it into Johnston Press (JPR.L: )
or Trinity Mirror (TNI.L: ) in return for a share of the enlarged group, The
Sunday Times said.

EASYJET (EZJ.L: )

Carolyn McCall, easyJet’s new chief executive, will undertake a business
review of the budget airline, with a key area of the review to be the speed of
growth and its consequent fleet requirements, The Sunday Telegraph said.

AVIS EUROPE (AVE.L: )

Belgium’s largest car distributor D’Ieteren (IETB.BR: ) says the sale of its
stake in car rental company Avis Europe “could make sense”, according to Belgian
daily De Tijd. [ID:nLDE66907V]

DOMINO’S PIZZA (DOM.L: )

The pizza restaurant chain delivers first-half results.

IMMUNODIAGNOSTIC SYSTEMS (IDH.L: )

The diagnostic testing kits maker reports full-year results.

INVISTA FOUNDATION (IFD.L: )

The property trust posts full-year results.

(Reporting by Jon Hopkins; Editing by Tricia Wright)

UK Stocks — Factors to watch on Monday July 12