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Both FTSE 100, FTSE 250 set for weekly declines

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ITV jumps on talks of broadcasting sale

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Reeves plans income tax raise in UK budget, the Times

reports

Nov 7 (Reuters) - UK stocks dipped on Friday, with IAG

among the biggest drag, and were set to log losses for the week

packed with earnings and a Bank of England interest rate

decision.

The blue-chip FTSE 100 index dropped 0.8% as of 1125

GMT, while the midcap index lost 0.5%.

Travel and leisure stocks declined 2.9%, with

IAG sliding 8.4% after the British Airways owner

flagged weakness in the U.S. market.

Rightmove ( RTMVF ) plunged 12.5% as Britain's biggest

property portal warned of slower profit growth next year. The

broader real estate sector lost 1.20%.

Heavyweight banks shed 0.7%. HSBC ( HSBC )

and Barclays ( BCS ) fell about 1% each.

On the bright side, ITV jumped 13.9% as the

broadcaster said it is in preliminary talks with Comcast ( CMCSA )-owned

pay-TV company Sky over a 1.6 billion pound ($2.15

billion) sale of its media and entertainment division.

Among other UK assets, gilt yields were up slightly and the

pound was headed for a third straight weekly fall.

Earlier this week, the Bank of England kept its main lending

rate steady at 4%.

Major brokerages including Morgan Stanley and Citigroup

expect the central bank to deliver a rate cut in its December

meeting.

Though headed for weekly losses, the FTSE 100 is among the

best performing indexes across Europe. Global equities ran into

turbulence this week as concerns over valuations of technology

stocks and dimming chances of a Federal Reserve interest rate

cut in December hit sentiment.

Back in the UK, the Times reported that Finance Minister

Rachel Reeves has told the country's budget watchdog that a rise

in personal taxation is among the "major measures" she is

preparing to announce in her November 26 budget.