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UPDATE 1-UK Stocks-Factors to watch on Monday June 18

Source : REUTERS
Last Updated: Mon, Jun 18, 2012 07:00 hrs

* Britain's FTSE 100 index is seen opening up 60-63 points, or 1.2 percent on Monday, according to financial bookmakers, as investors welcome the result of Sunday's re-run Greek election. A narrow election victory by pro-bailout parties over radical leftists eased concerns the debt-laden country could leave the euro zone. For more on the factors affecting European stocks, please click on

* The UK blue chip index closed up 11.76 points, or 0.2 percent on Friday at 5,478.81 as expectations of further global monetary stimulus measures mitigated tensions surrounding Greece's elections.

* Leaders of the Group of 20 major economies, meeting for a summit in Mexico on Monday and Tuesday, are set to confirm they will make new crisis-fighting loans to the International Monetary Fund as Europe's debt crisis threatens to stretch Europe's own rescue funds, underscoring the need for a bigger war chest at the IMF.

* Copper and crude futures rose in Asian trade on Monday after the pro-bailout parties in Greece won a slim parliamentary majority to avert an immediate euro zone crisis, but traders expect the relief rally to be short-lived as debt concern in the region lingers.

* Gold fell for the first time in seven sessions on Monday as the risk of a Greek exit from the euro zone subsided after the election result, denting the metal's safe-haven appeal.

* MAN GROUP - In an unexpected move, the hedge fund group has named Jonathan Sorrell, currently its Head of Strategy and Corporate Finance, as its finance director, replacing Kevin Hayes, who is leaving the company with immediate.

* The latest quarterly changes to the FTSE indexes take effect from the start of trading on Monday, with defence firm Babcock International moving up to the blue chips, and hedge fund manager Man Group being demoted to the FTSE 250 index.

* TESCO - Japan's No.2 general retailer Aeon Corp said on Monday it will take a 50 percent stake in the Japan business of British supermarket giant Tesco for a nominal sum.

* ROLLS-ROYCE - Britain will order the first reactor for a new generation of nuclear-armed submarines next week as part of a 1 billion pound contract with Rolls-Royce, a defence ministry source said on Sunday.

* GLENCORE - The Swiss-based commodities trader said on Friday it has agreed to an extension of the Canadian government's review of its proposed takeover of Viterra Inc, Canada's biggest grain handler.

* LLOYDS BANKING GROUP - The part-state-owned lender is leaning increasingly towards a flotation of the 632-branch business known as Verde, as hopes fade that its preferred option of a sale will go ahead, The Times said on Monday.

* ROYAL DUTCH SHELL - The Anglo-Dutch oil giant is believed to be considering making an improved offer of 1.4 billion pounds for Mozambique-focused explorer Cove Energy to see off a rival bid from Thai energy group PTT Exploration & Production, the Sunday Express said.

* BP - The oil major's row with its Russian partners is expected to flare up again this week when Mikhail Fridman, the oligarch who leads the Russian side, pays a visit to London. Fridman heads AAR, the group of billionaires that own half of TNK-BP, the British oil giant's Russian venture, The Sunday Times said.

* CABLE & WIRELESS WORLDWIDE - Fifty nine percent of shareholders in C&W Worldwide (CWW) have indicated they will accept the takeover offer from Vodafone, leaving largest shareholder Orbis to make the deciding vote at a meeting later on Monday. CWW said Orbis Investment Management had told them it would make an announcement on Monday morning about how it intended to vote regarding its 19 percent stake in the company.

* MELROSE - Germany's Elster Group has confirmed that Melrose will make an all cash offer for the firm, valuating it in total at about $2.3 billion, with the British firm currently conducting due diligence and in process of putting in place firm financing for the bid.

* MAJESTIC WINES - The wine merchants has reported a 14 percent rise in full-year pretax profit partly helped by strong sales of its fine wines priced above 20 pounds a bottle.

* HMV - Turnaround firms and potential predators have been looking at acquiring HMV's debt in a move that could give them control of the struggling high street music group, the Financial Mail on Sunday said.

* Two top private equity firms are backing an audacious 8 billion pound takeover bid for Britain's biggest mobile phone operator. Kohlberg Kravis Roberts and Apax are behind a potential swoop on Everything Everywhere - the company which runs the T-Mobile and Orange networks owned by Deutsche Telekom and France Telecom, The Sunday Times said.

* No important British macroeconomic data will be released on Monday, but it will be a busy week, with May inflation numbers due Tuesday, unemployment figures on Wednesday plus minutes from May's Bank of England Monetary Policy Committee meeting, and May retail sales on Thursday.

* Across the Atlantic, June's U.S. National Association of Home Builders (NAHB) index will be released at 1400 GMT, though the main focus will be on the latest two-day Federal Reserve Open Market Committee meeting, with a decision on U.S. monetary policy due after the London market close on Wednesday, as investors look for further liquidity injection moves by central banks.

* UK CORPORATE DIARY:

CITY OF LONDON INVESTMENT issues a trading update.

DIGITAL LEARNING MARKETPLACE reports full-year results.

SHORE CAPITAL GROUP holds its annual general meeting.

MISSION MARKETING GROUP holds its annual general meeting.

TODAY'S UK PAPERS

> Financial Times

> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit* BridgeStation: view story .134(Reporting by Jon Hopkins; Editing by Catherine Evans)



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