LONDON, Jan 6 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening
9-18 points higher on Tuesday, according to financial bookmakers, shrugging
aside a weak showing on Wall Street, with strength in oil issues thanks to
firmer crude prices expected to underpin the London market.

The UK blue chip index closed 17.85 points higher on Monday at 4,579.64,
extending the post-Christmas and New Year rally into a sixth session as more
traders return to work following the holidays.

Banks should be a focus after Britain's Financial Services Authority said
late on Monday that its ban on short-selling financial stocks would expire on
Jan. 16, but that it would reintroduce the ban without consultation if needed.

The FSA also said it would extend rules requiring net short positions in
financial stocks to be disclosed until June 30, although disclosure will only be
required at 0.1 percent bands. [ID: nL5278408]

British consumer morale sank lower in December as worries about job losses
resulting from the economic downturn soured the Christmas spirit.

The Nationwide Building Society said its consumer confidence index fell four
points to 47 last month -- the lowest since the survey began in 2004.

"As the UK enters recession it is likely to be some time before we see
confidence returning to levels seen in 2007," said Fionnuala Earley, Nationwide
chief economist. [nL5246817]

The latest Mationwide UK House Prices survey will be released at 0700 GMT,
with investors also having the December CIPS services purchasing managers index
to assess later in the morning.

"There are rumors that the number could be better then expected, which
should give the FTSE a nice boost" said David Evans, market analyst at
BetOnMarkets.com.

"Traders will also be paying close attention to the release of the US ISM
non-manufacturing numbers, which should give as a hint at how the industry is
doing," Evans added.

* Wall Street slips on telecom, financials; Apple jumps [ID:nN05392498]

* Nikkei up 0.3 pct on yen, hopes for US econ steps [ID:nT302581]

* Dollar dips vs yen after hitting nearly 1-mth high [ID:nT7265]

* Oil steady above $48 on MidEast, Russian tensions [ID:nL6407082]

* Gold extends losses as dlr holds near 3-wk high [ID:nSP415731]

UK stocks to watch on Tuesday are:

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

British retailer Marks & Spencer is set to cut more than 1,000 jobs in
stores, its head office and support functions following disastrous Christmas
trading, The Times web-site reported on Monday. The newspaper said the iconic
high street chain would announce the cuts on Wednesday, when it is due to
release a trading update to the City. A spokeswoman for M&S declined to comment.
[ID:nLD586859]

FOOD RETAILERS

Waitrose, the upmarket grocery arm of employee-owned British retailer John
Lewis [JLP.UL], said on Monday a surge in sales in the days before Christmas had
continued over the New Year festivities. Like-for-like food sales were up 4.7
percent in the week ended Jan. 3, the group said in a trading update.

XSTRATA (XTA.L: Quote, Profile, Research)

Xstrata, the world's fourth largest copper miner, said on Tuesday mining
operations at its Ernest Henry copper and gold project were not expected to
resume until later in the week as rain continued to fall.

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

Lloyds TSB is to give a number of senior roles to HBOS executives when it
completes the acquisition of the UK's biggest mortgage lender in January, the
Financial Times. Dan Watkins, an HBOS board director and head of retail products
will be appointed as chief executive of mortgages in the new bank, while Peter
Jackson, head of products for retail banking, will become managing director of
consumer banking, the newspaper added.

Also, HBOS HBOS.L HBOS could be "hollowed out" by its takeover partner
Lloyds TSB (LLOY.L: Quote, Profile, Research) leaving the 79,000 people in the HBOS pension fund at risk
of not having their pensions paid in full, the Times cites a trustee as saying.

CARPETRIGHT CPR.L

Flooring retailer Carpetright is considering medium-term growth plans as
chairman and chief executive Lord Harris of Peckham said the group, which has
been hit by a sharp drop in sales, could buy businesses, including Topps Tiles,
after a year of consolidation and cutting debt, the Financial Times said.

BOOKMAKERS

The government is to unveil plans on Tuesday under which bookmakers and
other gaming operators will be forced to pay more than five million pounds a
year to fund problem gambling studies, the Independent said. A Whitehall source
said the initiative will "secure the future of problem gambling treatment and
will ensure that all operators pay their way".

BRITISH AIRWAYS (BAY.L: Quote, Profile, Research)

British Airways is thought to be eyeing a 25 percent stake in Indian
no-frills airline GoAir following indications that the country is set to relax
rules governing foreign investment in its airlines, the Daily Mail said.

Also, British Airways will deliver December traffic figures this afternoon.

NEXT (NXT.L: Quote, Profile, Research)

The clothing retailer will issue a trading update.

DEBENHAMS DEBS.L

The department stores group will issue a trading update.

CRH (CRH.I: Quote, Profile, Research)

The Irish aggregates group will issue a trading update.

DUNELM GROUP (DNLM.L: Quote, Profile, Research)

The specialist homewares retailer will issue a trading update.

REGEN THERAPEUTICS (RGNT.L: Quote, Profile, Research)

The small cap biotch firm holds an extraordinary general meeting.

TODAY'S UK PAPERS

> Financial Times [PRESS/FT]

> Other business headlines [PRESS/GB]
(Reporting by Jon Hopkins; Editing by Hans Peters)