* FTSE up 0.2 percent
* Banks rise, Lloyds reveals competitor's UK head as new CEO
* Retailers slide as Next reports falling sales
By David Brett
LONDON, Nov 3 (Reuters) - Britain's top share index edged into positive territory at noon on Wednesday, led by financials as Lloyds poached Santander UK's head as its new CEO, while retailers toiled after Next reported lower sales.
The FTSE 100 was up 9.57 points, or 0.2 percent, at 5,767.00 by 1144 GMT, having added 1.1 percent on Tuesday ahead of the outcome of the U.S. Federal Reserve's policy meeting due later on Wednesday.
Lloyds, up 3.4 percent, poached Antonio Horta-Osorio, head of Santander's fast-growing British division, to be its next chief executive in a coup that dealt a blow to its Spanish rival.
"Spreadbetters like Lloyds as a speculative short-term buy after bringing on a new CEO from Banco Santander. Mid-to-long term fundamentals are not there to support it though, so the volumes have been thin," Chris Purdy, trader at Spreadex, said.
Lloyds had fallen 3.2 percent on Tuesday on worries over its bad loans after reporting results.
HSBC rose 1.6 percent with its update due on Friday, while Standard Chartered was up 1.9 percent.
Barclays added 0.1 percent ahead of its update on Nov. 9, while Royal Bank of Scotland, due to issue an update on Friday, was down 0.4 percent.
Car insurer Admiral rose 4.7 percent after saying it was on course to meet profit forecasts for the year after third-quarter turnover rose more than 50 percent.
Experian climbed 1.6 percent with analysts pointing to favourable political developments in the United States where the credit-checking company has significant exposure.
RETAILER'S SALES SAG
Retailers bore the brunt of bearish sentiment after number two fashion retailer Next, down 3.6 percent, reported falling sales at its stores but maintained guidance for full-year profit supported by a strong third-quarter performance from its home shopping business.
Marks & Spencer fell 1.9 percent with the retailer pressured by a bearish note from RBS in which it reiterated a "sell" rating.
Tesco, Morrison Supermarkets, and J Sainsbury fell 0.8-1.4 percent.
British aerospace electronics group Cobham fell as much as 10 percent after a disappointing third-quarter update and downbeat outlook hit by U.S. contract delays.
Mining and energy stocks were mixed, as investors took positions ahead of the announcement from the United States Federal Reserve policy committee.
"We have seen traders close out some of their positions in the key energy firms and miners ... with most investors eyeing tonight's all important Fed decision," Giles Watts, Head of Equities, City Index, said.
U.S. stock index futures pointed to a slightly firmer opening on Wall Street, with traders expecting the Fed to announce a further $500 billion of quantitative easing.
BP performed strongly, gaining 2.2 percent, lifted as Goldman Sachs upgraded the oil company to "buy" from "neutral" on the basis of strong third-quarter results on Tuesday, the dividend outlook and an attractive valuation. (Additional Graphics supplied by Scott Barber; Editing by Dan Lalor)