UPDATE 1-UK Stocks-Factors to watch on Jan. 7

(Adds index move at open, news items)
Jan 7 (Reuters) - Britain's FTSE 100 .FTSE index rose 0.6% to 6,880 in
early trade on Thursday.

* SAINSBURY'S: Sainsbury 's SBRY.L raised its full-year profit forecast as
it reported strong trading in the key Christmas quarter, benefiting from
COVID-19 restrictions which kept people eating and drinking at home.
* MITCHELLS & BUTLERS: Mitchells & Butlers MAB.L said it was exploring an
equity capital raise, as a new national lockdown shut the British pub operator's
sites across England, though it added that no decision had been made yet on its
timing, size or terms. * RYANAIR: Ryanair RYA.I RYA.L slashed its annual traffic forecast by
around 5 million passengers, citing fresh lockdowns in the United Kingdom and
Ireland introduced to curb a highly contagious new variant of
COVID-19. * ENTAIN: Ladbrokes owner Entain Plc ENT.L said it has offered to buy
Sweden-based sports betting firm Enlabs AB NLABA.ST for about $343 million,
days after rejecting an $11 billion takeover approach from U.S.-based MGM
Resorts MGM.N . * B&M: B&M BMEB.L reported sales growth of 22.5% in the third quarter,
while lowering its annual profit outlook after the British discount retailer let
go of 80 million pounds ($109 million) of property tax relief offered by the UK
government. * TP ICAP: TP ICAP TCAPI.L forecast a 1% drop in full-year revenue and
offered more details on a share issue to fund its previously announced
acquisition of electronic trading network Liquidnet. * BP: BP Plc BP.L has given the operator of a Caribbean refinery more time
to fully restart and retain its crude oil supply agreement after the plant
failed to hit operating targets last year. BP also paid almost $24.4 million to
the U.S. Treasury to cover allegations company traders manipulated natural gas
markets in 2008, but is still challenging the fine in
court. * GOLD: Gold prices rose as a Democrat sweep of Georgia's Senate runoffs
boosted expectations of additional U.S. stimulus, although soaring Treasury
yields held back bullion below a two-month high scaled in the previous
session. * OIL: Oil prices rose almost 1% after a fall in U.S. stockpiles added
further support following the unilateral decision by Saudi Arabia, the world's
biggest exporter, to cut output over the next two months. * The UK blue-chip index .FTSE closed 3.5% higher on Wednesday led by
banking and energy stocks as investors bet on more U.S. stimulus and crude oil
prices jumped after Saudi Arabia agreed to cut more output than
expected. * For more on the factors affecting European stocks, please click on:
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