LONDON, Oct 27 (Reuters) - Britain's FTSE 100 futures contract rose 0.7 percent on Monday. For more on the factors affecting European stocks, please click on
* The UK blue chip index closed down by 0.5 percent at 6,388.73 points on Friday, although it recorded a 1.2 percent gain for the week, extending a rebound from 15-month lows reached earlier in October.
* EUROPEAN BANKS/LLOYDS : Roughly one in five of the euro zone's top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday, while Lloyds narrowly passed a test set by European regulators to assess whether banks have enough capital to weather another economic crash, calling into question its chances of re-starting dividends.
* BANK OF ENGLAND/INTEREST RATES: The Bank of England should begin raising interest rates now, because spare capacity in Britain's fast-recovering economy could be used up by the middle of next year, adding to inflation pressures, a Bank policymaker said in a Sunday newspaper. Ian McCafferty, one of two Bank rate-setters to have voted for rate hikes since August, reiterated his view that raising borrowing costs now would help the BoE to nudge up rates only gradually.
* BP : Tanzania has held talks with France's Total and Britain's BP over oil and gas exploration, its energy ministry said on Saturday, aiming to add to major companies active in its thriving energy sector.
* SSE : Britain's energy regulator Ofgem has approved 1.1 billion pounds of funding for a new subsea electricity cable to connect the north of Scotland, nearly 200 million pounds less than requested, developer SSE said on Monday.
* ANGLO AMERICAN : Mining group Anglo American said it had sent its first iron ore cargo from a project in Brazil to China.
* MONARCH AIRLINES: British holidays and airline company Monarch has been acquired by investment firm Greybull Capital which will pump 125 million pounds ($201 million) into the company as it turns itself into a budget airline.
* Brent crude futures fell below $86 a barrel on Monday after Goldman Sachs cut its price forecasts for the contract and for U.S. oil in the first quarter of next year by $15.
* London copper drifted on lower Monday after closing last week little changed, as a strike at Peru's biggest copper mine failed to undercut confidence that improving supply will eclipse a seasonal uptick in demand.
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