UK Stocks -- Factors to watch on May 2

LONDON, May 2 (Reuters) - Britain's FTSE 100 .FTSE index
is seen opening as much as 0.7 percent higher on Friday,
according to financial bookmakers, tracking gains in the United
States and Asia.

U.S. stocks rose overnight as a rebound in the dollar and
retreating oil prices calmed fears about inflation. In Asia,
Japan's Nikkei average .N225 rose 2.1 percent.

Financial bookmakers expected the FTSE 100 to open up 42 to
45 points after ending flat at 6,087.3 on Thursday.
All eyes will be on U.S. non-farm payrolls data due at 1230
GMT for further clues on the strength of the world's largest
economy. Economists in Reuters survey foreast 80,000 jobs were
lost in April, a repeat of the March figure.

"Cheaper borrowing certainly does seem to be having the
desired effect of stimulating the economy and although today's
non-farm payroll readings could present the opportunity for some
marked end of the week profit taking, there will doubtless be a
lot of positive sentiment spilling into European markets around
yesterday's move higher," said Matthew Buckland, a trader at CMC
Markets.

In the UK, Britain's economy will slow sharply this year as
consumers tighten their belts, a leading thinktank warned.
[ID:nL01800651]

Insurers may also be in focus after the Financial Times said
Germany's Allianz (ALVG.DE: Quote, Profile, Research) could make a big acquisition in the
UK general insurance market and is gearing up for a possible
assault on UK life assurance by importing U.S.-style retirement
savings products to Britain.

* Wall St rallies on tech, dollar rebound [nN01447564]
* Japan stocks up to 2-mth high, property strong [nT233347]
* Asia joins US optimism; dollar up, oil down [nL02384320]
* Dollar steady near 2-month peak, US jobs data next [nT63248]
* Oil falls below $112 on dlr, U.S. demand, Nigeria[nSYD104657]
* Gold struggles at $850 on strong dollar, weak oil [nT277092]

UK stocks to watch on Friday are:

RIO TINTO (RIO.L: Quote, Profile, Research)

Rio Tinto Chairman Paul Skinner said a break-up of his
company is an option in order to extract the best possible
return for shareholders, the Sydney Morning Herald said.
[ID:nSYD107749]

BARCLAYS (BARC.L: Quote, Profile, Research)

Barclays said on Thursday that Paul Idzik, its chief
operating officer, had resigned and would be leaving Britain's
third biggest bank later this year. [ID:nL01153086]

LLOYDS TSB (LLOY.L: Quote, Profile, Research)

The lender is set to resist the trend for banks to boost
capital crunch write-downs at its interim trading statement next
week, the Independent said.

HSBC (HSBA.L: Quote, Profile, Research)

HSBC aims to launch its first life insurance joint venture
in China in July or August and plans to offer pension services
with a local partnership in the world's fastest growing major
economy, a senior HSBC executive said. [ID:nN01441179]

CAIRN ENERGY (CNE.L: Quote, Profile, Research)

Oil explorer Cairn India (CAIL.BO: Quote, Profile, Research), the Indian unit of Cairn
Energy, said it had received agreement from the Indian
government to deliver its crude oil to Salaya in western India.
[ID:nBOM74238]

ROYAL BANK OF SCOTLAND (RBS.L: Quote, Profile, Research)

Texas Pacific Group is poised to bid for Royal Bank of
Scotland's 8 billion pounds insurance arm -- a move which would
dash fears that private equity players are struggling to finance
major takeover deals, the Daily Telegraph said.

MARKS & SPENCER (MKS.L: Quote, Profile, Research)

Marks & Spencer Chief Executive Stuart Rose has bowed out of
his controversial investment in a karaoke bar company co-founded
by Martha Lane Fox, his broadroom colleague at the UK retailer,
the Financial Times said.

CARPHONE WAREHOUSE (CPW.L: Quote, Profile, Research)

Mobile phone company O2 and the retailer have sold out of
the basic version of Apple's iPhone and will not be restocking
their shelves ahead of the launch of the new version of the
device over the summer, the Guardian said.

ICAP (IAP.L: Quote, Profile, Research)

ICAP said it planned to launch as soon as Friday an
alternative U.S. rate benchmark to the London interbank offered
rate, whose reliability has been questioned during the current
global credit crisis. [ID:nN01393301]

VODAFONE (VOD.L: Quote, Profile, Research)

The mobile phone giant is offering unlimited Internet access
on its new monthly mobile price plans, driven by an increasing
number of people accessing social networking sites and e-mail
from their phones, the Times said.

RENTOKIL INTITIAL (RTO.L: Quote, Profile, Research)

The company is due to issue its trading update.

CADBURY PLC (CBRY.L: Quote, Profile, Research)

It is the first day of trading for Cadbury Plc as a
confectionery group.

CAPITAL AND REGIONAL PLC (CAL.L: Quote, Profile, Research)

The company said it was aware of market concern around the
capital structure of the mall fund, in which it holds a 24.2
percent stake. [ID:WLB0880]

ROTORK (ROR.L: Quote, Profile, Research)

The company is due to issue its trading update.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]

(Reporting by Dominic Lau)