UK at a Glance-UK Stocks

Britain's FTSE 100 index is seen opening 15-18 points lower, or down as much as 0.4 percent on Monday, extending Friday's falls following a hefty pre-weekend sell-off on Wall Street and declines in Asia, signs investors are losing faith in the economic recovery. The UK blue chip index closed 93.17 points or 1.8 percent lower on Friday at 5,044.55, and notched up its largest weekly fall, at 3.8 percent, since March. The benchmark index fell 1.7 percent overall in October, the first monthly drop since June but is still up about 46 percent since its March low. Investors will be focused ahead this week to the latest Bank of England Monetary Policy Committee meeting, decisions from which are due on Thursday, with no change to UK interest rates expected but an increase in the bank's quantitative easing policy anticipated. Data released overnight showed British house prices fell at their slowest annual rate since June 2008 in October, dropping 4.2 percent, due to an ongoing lack of housing for sale after the credit crunch, property data company Hometrack said on Monday. The other domestic data focus on Monday will be on October's CIPS manufacturing PMI report, with a reading of 50.0 forecast, up from 49.5 in September. Meanwhile, the U.S. ISM report for October, plus September pending homes sales and construction spending numbers should attract attention in the afternoon. HSBC's China Purchasing Managers' Index (PMI) rose to an 18-month high in October of 55.4 from 55.0 in September, pointing to sustained strength in the country's fast manufacturing sector. The banking sector will be in the spotlight after CIT Group, a U.S. lender to hundreds of thousands of small and medium-sized businesses, filed for bankruptcy on Sunday, as the global financial crisis left it unable to fund itself and the recession hit its loans. * GLOBAL MARKETS-Asia share drop limited after Wall St hit * US STOCKS-Wall St tumbles on recovery jitters, financials * Nikkei at 3-week closing low, consumer lenders up * FOREX-Yen cuts earlier gains as it slides vs Aussie * TREASURIES-Slip in Asia, U.S. manufacturing data eyed * Oil rebounds above $77, China PMI data supports * PRECIOUS-Gold steadies above $1,040/oz, ETF holdings dip * METALS-Shanghai copper opens 1.6 pct lower, chases LME UK stocks to watch on Monday are: LLOYDS BANKING GROUP The bank will attempt to raise 7.5 billion pounds ($12.3 billion) capital by offering existing bond holders the chance to exchange their bonds for riskier but higher yielding investments that could convert into equity, the Financial Times said on Monday. Also, the British Treasury will not allow Lloyds Banking Group to break its promise to lend an extra 14 billion pounds to homes and businesses, which the bank said it would do when it joined the government's asset protection scheme, The Observer said. ROYAL BANK OF SCOTLAND The UK government will unveil plans this week to spend 30 billion pounds ($49.3 billion) buying further shares of rescued banks Royal Bank of Scotland and Lloyds, The Daily Telegraph newspaper reported on Monday. Also, RBS may have to accept significant cutbacks in its investment banking division if the bank stands by its desire to keep U.S. retail bank Citizens, the Daily Telegraph added. BARCLAYS Barclays is pursuing aggressive expansion of its retail and investment banking operations in Russia as the investment climate improves in the region, The Independent said on Monday. RIO TINTO Rio Tinto, the world's second-largest iron ore miner, said Chinese demand for iron ore remains strong and major producers are unlikely to meet all the demand. CADBURY Kraft looks set to make a formal offer for Cadbury as a result of improved third-quarter earnings, but analysts believe it will not improve on its indicative 10.2 billion pound cash and paper bid of 745p a share, the Daily elegraph said on Monday. CABLE & WIRELESS Plans to demerge Cable & Wireless are being hindered by disagreements over bonus payments. Its international division wants to delay the move because if there is no significant increase in its share price, its members will miss out on an estimated 30 million pounds, The Daily Telegraph said on Monday. BRITISH AIRWAYS Cabin crew workers at the airline are to hold a mass meeting on Tuesday to discuss new employment contracts they think are "unfair and unworkable", The Guardian said on Monday. BAE SYSYTEMS BAE will bid this week for the first stage of a 4 billion pound ($6.6 billion) contract to build armored reconnaissance vehicles for the British army, the company said on Sunday. NATIONAL EXPRESS The Cosmen family has denied a report in the Mail on Sunday that Jorge Cosmen, deputy chairman of National Express, is set to resign. RYANAIR The Irish airline Ryanair posted an 80 percent rise in first-half profit and said on Monday it could reverse its long-standing strategy of rapid growth and distribute cash to shareholders instead. GLAXOSMITHKLINE According to analysts, GlaxoSmithKline may seek to expand in India or China as it takes its acquisition strategy to emerging markets, the Mail on Sunday said. RANK GROUP The chief executive of Rank Group, Ian Burke, has written to the Treasury appealing for changes to gambling tax, requesting the newly raised bingo tax be cut from 22 percent to 15 percent and that poker games should be taxed less stringently than casino games, the Mail on Sunday said. QUINTAIN ESTATES The real estate developer will announce plans this week to raise up to 180 million pounds ($298 million) of fresh funds, the Sunday Times reported. CHLORIDE GROUP The power protection firm posts first-half results. TELECITY The data centre operator issues a trading update