UK Stocks — Factors to watch on Monday July 26

LONDON, July 26 (BestGrowthStock) – Britain’s FTSE 100 (.FTSE: ) index is seen opening
up 30-44 points, or as much as 0.8 percent higher on Monday, according to
financial bookmakers, bouncing back after a flat showing on Friday in tandem
with pre-weekend gains on Wall Street and advances on Monday in Asia.

The UK blue chip index closed 1.19 points lower on Friday at 5,312.62 with
weakness in banks weighing as the sector awaited the outcome of European stress
tests, not released until after the London close.

Only seven of 91 banks — five small Spanish banks, Germany’s state-rescued
Hypo Real Estate [HRXGe.UL] and Greece’s ATEbank (AGBr.AT: ) — failed the tests,
for an overall capital shortfall of 3.5 billion euros ($4.5 billion).

The shortfall was much smaller than the 30-100 billion euros predicted by
markets, although many European banks have already raised capital during the
financial crisis, and there remained some scepticism that the stress tests on
European banks were not strict enough. [ID:nLDE66M1T3] [ID:nLDE66M1A2]

U.S. stocks (Read more about the stock market today. ) rose about 1 percent on Friday as GE (GE.N: ) shares jumped after
the conglomerate increased its quarterly dividend by 20 percent, the latest in a
string of bullish news from big U.S. multinationals which have helped ease
concerns that the global economic recovery may be stalling.

Asian shares rose on Monday supported by the solid U.S. corporate earnings
picture, while the euro moved higher as the bank tests showed no nasty
surprises.

On the macro front, house prices in England and Wales fell for the first
time in 15 months in July, causing the the annual rate to weaken for the first
time in over a year, property data company Hometrack said on Monday.
[ID:nLDE66M1LX]

No other domestic economic data will be released on Monday, with little else
due all week. The main focus will be on U.S. second quarter GDP numbers on
Friday.

Ahead of that, June U.S. new home sales will be the main feature on Monday,
due at 1400 GMT, with a slight increase to 0.31 million expected, after May’s
0.30 million. Chicago’s Fed index will be released at 1230 GMT.
The U.S. second-quarter earnings calendar remains full this week, but there
are less household names, with broker Legg Mason (LM.N: ) the only real interest
on Monday.

* GLOBAL MARKETS-Asian shares, euro rise after stress tests [ID:nSGE66M0CM]

* US STOCKS-GE, profits boost Wall St, S&P crosses key level [ID:nN23101432]

* Nikkei gains 1.2 pct as earnings hopes help [ID:nTOE66P02G]

* FOREX-Euro hits 7-wk high vs yen, high-yielders rise [ID:nTOE66P007]

* TREASURIES-Edge up in Asia, 10-yr yield hovers near trend [ID:nTOE66P02U]

* Oil rises above $79 on equity gains, higher risk appetite [ID:nSGE66P00L]

* PRECIOUS-Gold bounces on physical buying; equities gain [ID:nSGE66P04O]

* METALS-Copper steady after rally, bank stress tests [ID:nTOE66P018]

UK stocks to watch on Monday are:

BP (BP.L: )

BP was expected to announce changes at the top on Monday, a day ahead of the
oil firm’s second-quarter results, with the anticipated departure of CEO Tony
Hayward, who came under fire for his handling of the massive oil spill in the
Gulf of Mexico, and his replacement by Bob Dudley, an American executive who is
now managing the oil spill response operation, according to sources close to BP.
[ID:nN26145842]

Also BP is considering the sale of some of its Russian assets in order to
raise $20 billion to help pay for the Gulf of Mexico oil spill, The Times said
on Monday.

GLAXOSMITHKLINE (GSK.L: )

The drugmaker made a “very casual approach” to Genzyme Corp (GENZ.O: ), asking
to be notified if Genzyme considered selling itself, the Wall Street Journal
reported on Sunday, citing a person familiar with the matter. [ID: nN25160145]

Also, GlaxoSmithKline’s chief executive told French daily La Tribune on
Monday that the firm is hunting for small bolt-on acquisitions: “We may do small
targeted deals, but nothing big. We will not do a large transaction in pharma
nor in generics,” Andrew Witty said. [ID:nLDE66P03F]

ASTRAZENECA (AZN.L: )

Brilinta, the new anti-clotting drug from AstraZeneca, will come under
scrutiny by a U.S. advisory panel, with clinical trial data to be studied before
the recommendations are passed to the Food and Drug Administration to determine
whether to give it marketing approval, The Daily Telegraph said on Monday.
AstraZeneca will publish second-quarter results on Thursday.

VODAFONE (VOD.L: )

Vodafone may sell its minority stake of 4.39 percent in Bharti Airtel
(BRTI.BO: ) that is valued at 52 billion rupees ($1.1 billion) at current market
price, India’s Business Standard reported on Monday. [ID:nSGE66P02Z]

Also, a rebel shareholder, The Ontario Teachers’ Pension Plan, will call for
a boardroom shake-up at the mobile phone company’s annual meeting this week, in
a move to address what it sees as a gap between the value of the company’s
assets and its share price, The Daily Telegraph said on Monday.

INTERNATIONAL POWER (IPR.L: )

International Power’s biggest investor, Invesco Perpetual, has told GDF Suez
(GSZ.PA: ), the French utility in reverse takeover talks with the UK firm, a cash
sweetener may not be needed to win its support, the Financial Times reported.
[ID: nLDE66O0A9]

DANA PETROLEUM (DNX.L: )

A group of investors representing 30 percent of the oil explorer’s
shareholder base has called on Tom Cross, Dana’s chief executive, to open talks
with the Korea National Oil Company after the South Korean state oil company
made a 1.7 billion pound takeover approach, The Daily Telegraph said on Monday.
The group is thought to include Blackrock, JP Morgan Asset Managers and
Schroders.

PEARSON (PSON.L: )

The publishing group posts first-half results.

RECKITT BENCKISER (RB.L: )

The household and personal care products group reports first-half results.

NATIONAL GRID (NG.L: )

The power generation group issues a trading update.

PACE (PIC.L: )

The set-top box maker delivers first-half results.

FILTRONIC (FTC.L: )

The mobile phone components group reports full-year results.

WSP GROUP (WSPG.L: )

The environmental consultancy posts first-half results.

DIALIGHT (DIAL.L: )

The applied LED technology firm delivers first-half results.

CRESTON (CRCRE.L: )

The property group issues a Q1 trading update.

HOGG ROBINSON GROUP (HRG.L: )

The travel tour operator holds its annual general meeting.

CRANSWICK (CWK.L: )

The pork producer holds its annual general meeting.

Stock Market Trading

(Reporting by Jon Hopkins; Editing by Tricia Wright)

UK Stocks — Factors to watch on Monday July 26