FTSE 100 preview: Banks lower on Pre-Budget news
The FTSE 100 is seen opening lower on Monday, consolidating after Friday's modest post-US jobs report gains, with banks likely to retreat on windfall tax concerns.
Looking forward: Investors are likely to be focused on the Pre-Budget Report
The UK blue chip index closed up 9.36 points, or 0.2%, on Friday at 5,322.36 as Wall Street gained after US employers cut a fewer than expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007.
No domestic data is due for release on Monday, so investors are likely to be focused on Wednesday's UK Pre-Budget Report from finance minister Alastair Darling.
Britain is still considering some kind of windfall tax on bankers' bonuses, but officials said no final decisions had been taken on what Darling would do this week.
Prime Minister Gordon Brown will pinpoint £3bn in public sector savings on Monday as his Labour government fleshes out its plans to halve the ballooning budget deficit over four years.
The Bank of England interest rate decision on Thursday will also draw attention, although no change is predicted to either interest rates or the central bank's quantitative easing policy.
Britain's manufacturing sector will return to growth next year, the recovery gaining pace after a slow first quarter, the Engineering Employers' Federation (EEF) said on Monday.
Across the Atlantic, US October consumer credit numbers and November's Employment index should be a focus this afternoon.
Peter Wood, the founder of several insurance companies, is lining up financing to buy out his Esure motor insurance business from Lloyds Banking Group, the Sunday Times reported.
Rio Tinto has sold its 50% stake in the Hydrogen Energy International joint venture to its partner BP for an undisclosed sum, Rio said in a statement on Monday.
Separately BHP Billiton and Rio Tinto signed a $116bn iron ore joint venture agreement on Saturday to combine their Western Australian iron ore operations.
Press reports over the weekend suggested Hershey was in talks with Nestle over the possibility of forming a consortium to bid for Cadbury after Kraft Foods on Friday formally launched its 713p a share offer for the British confectionery group.
Tesco is expected to announce a three percent increase in sales year-on-year in its trading update on Tuesday, the Independent on Sunday said.
Also, Tesco is seeking to launch a version of its successful Clubcard shopper loyalty programme for its Fresh & Easy customers in the US, The Financial Times said on Monday.
Sainsbury's new chairman, David Tyler has warned shareholders delivering short-term profits growth could damage the business in the long run, the Sunday Telegraph said.
United Utilities has hired JP Morgan Cazenove to oversee an auction as part of a wide-ranging asset disposal, the Sunday Times reported.
Centrica's British Gas unit plans to provide insurance to its customers to protect services such as boilers, central heating systems and plumbing, and is in the process of recruiting staff, it said on Sunday.
Capita on Sunday denied an allegation it had overcharged schools for IT services by £75m, saying it had a good relationship with its clients.
Britain's largest van hire group, Northgate, will announce higher-than-expected profits on Tuesday, The Mail on Sunday said.
Novae Group is finalising plans to distribute millions of pounds in dividends that could be revealed on Monday, The Mail on Sunday said.
Waste management firm Shanks facing shareholder pressure to open talks with Carlyle over a proposed 135p-per-share offer, having rejected three previous offers from the private equity firm, The Daily Telegraph said on Monday.
DSG International, the owner of the Curry's and PC World chains, is suing its own legal advisers for up to €1m over alleged mistakes made in the closing of the retailer's French operations, The Daily Telegraph said on Monday.
Joe Lewis, the owner of 23% of pub and restaurant operator Mitchells & Butlers, is considering legal action against the company if it refuses to reinstate the two representatives of his Piedmont investment vehicle who were ejected from the board last week, The Times said on Monday.
There will be results today from Wichford, IS Pharma and Lavendon.
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