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(AFX UK Focus)
2008-11-05 07:15
UK Stocks -- Factors to watch on Nov 5 |
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LONDON, Nov 5 (Reuters) - Britain's blue-chip stocks were seen opening as much as 1 percent higher on Wednesday as Barack Obama's election as U.S. president ended uncertainty about who will lead the world's largest economy at a time of financial turmoil. Financial bookmakers saw the FTSE 100 opening up as much as 45 points, after it closed 4.4 percent higher on Tuesday after Asian shares hit a three-week high following the Obama victory. The Nikkei rose 4.5 percent on Wednesday, while major U.S. stock indexes rose between about 3 and 4 percent in the biggest Election Day rally ever on Tuesday. Investors will look to UK services PMI and industrial output data at 0930 GMT for more clues on the health of the ailing UK economy ahead of a rate decision from the Bank of England on Thursday. The BoE is widely expected to cut rates by 50 basis points. Expectations of a rate cut helped push the UK's blue-chip index up for the 6th straight day on Tuesday. British consumer confidence rose last month for the first time this year as falling petrol prices and a government-backed rescue package for the banking sector lifted morale, a survey showed on Wednesday. However, in more downbeat news, British recruiters reported a record fall in job appointments and the first drop in wages for five years in October, industry group the Recruitment and Employment Confederation said in a survey published with accountants KPMG on Wednesday. Analysts said construction and infrastructure stocks are potential gainers from the Obama win, with European commercial banks set to benefit from opportunities to acquire U.S. regional banks. A strong dollar would also be good for European exporters. Other possible gainers include healthcare equipment and insurance, analysts said.
UK stocks to watch on Wednesday are:
BP BP Capital Markets Plc, a unit of BP, on Tuesday sold $3 billion of five-year senior notes, said IFR, a Thomson Reuters publication.
GLAXOSMITHKLINE A GlaxoSmithKline drug, SRT1720, in development that mimics a health-boosting compound found in red wine may be a powerful weapon in the fight against obesity and diabetes, researchers said on Tuesday. Also, Glaxo staff in the United States are braced for further job cuts as Chief Executive Andrew Witty prepares to announce a reorganisation of pharmaceutical operations in the group's biggest market. A Glaxo spokeswoman confirmed there would be an announcement shortly but declined to give details.
ROYAL BANK OF SCOTLAND RBS new boss Stephen Hester is preparing to dismantle the empire built by outgoing chief executive Fred Goodwin after admitting the giant lender had "over-extended" itself and now faces its first full-year of loss, the Daily Telegraph said.
TAYLOR NELSON SOFRES The market research firm aims to expand its China sales by about 15 percent annually over the next five years its managing director for the Greater China region said on Wednesday.
RECKITT BENCKISER Longer-term use of a drug that relieves withdrawal symptoms might help young people undergoing treatment for addiction to heroin or prescription painkillers like Oxycontin, U.S. researchers said on Tuesday. Young addicts who took Reckitt Benckiser's drug Suboxone for 12 weeks were less likely to abuse drugs during treatment and stayed in treatment longer than those who underwent short-term detox and counseling, they said.
BRITISH AIRWAYS WestJet Airlines Inc said on Tuesday it is teaming up with some members of the Oneworld airline alliance, led by British Airways and AMR Corp's American Airlines, to broaden the Canadian carrier's international reach.
ALLIED IRISH BANKS The bank releases trading results.
FIRSTGROUP The company releases its first half results.
NEXT The retailer releases its trading results.
LIBERTY INTERNATIONAL
Liberty releases its Q3 results.
(Reporting by Simon Falush and Rebekah Curtis)
(simon.falush@reuters.com. +44 20 7542 7681) Reuters Messaging: simon.falush.reuters.com@reuters.net)
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