BUZZ-The wage trade: the stocks exposed to a UK salary hike

** Retailers, outsourcers, pub cos and transport groups most likely stocks to be hit by a hike in the UK minimum wage

** Minimum wage to rise by 38 pct to £9 per hour by 2020, Chancellor George Osborne announced in the July 8 Budget

** Stocks Buzz Minimum Wage Basket tracks 20 companies likely to be impacted by the rule change, based on recommendations from Barclays (LSE: BARC.L - news) , Citi and Liberum strategists

** Companies screened for high UK exposure, low margins and high labour cost to revenue ratio

** Basket likely to underperform on a 3-5 year view as wage hikes take place, though some short-term weakness already being seen as companies and analysts digest the news

** JD Wetherspoon fell 8.5 pct after warning new laws would hurt its margins

** Numis cut Mitchells & Butlers (LSE: MAB.L - news) ' 2017E PBT by 13 pct, stock has also seen downgrades at Deutsche Bank (Xetra: 514000 - news) and Nomura along with Restaurant Group (LSE: RTN.L - news)

** Dates to watch for further short-term guidance: Capita (H1 July 29), Babcock (FY July 30), Serco (H1 Aug 11) Rank Group (FY Aug 20), Restaurant Group (H1 Aug 28)

** Stocks Buzz Minimum Wage Basket - Constituents: http://link.reuters.com/nyc35w Performance: http://link.reuters.com/kyc35w (RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)