суббота, 3 ноября 2007 г.

U.K. Stocks Retreat, Led by Barclays, RBS; BSkyB, BA Decline

U.K. stocks declined for a second day as Royal Bank of Scotland Group Plc and Barclays Plc sank on concern British banks' earnings will be hurt by the credit-market turmoil.

British Airways Plc fell as earnings increased less than analysts estimated. British Sky Broadcasting Group Plc dropped after saying profit fell by 28 percent.

The FTSE 100 Index slid 55.5, or 0.8 percent, to 6,530.6, making a loss of 2 percent for the week. The FTSE All-Share Index sank 0.8 percent to 3,361.53 today. Ireland's ISEQ Index dropped 1.7 percent to 7,615.54.

Royal Bank of Scotland, which last month agreed to buy ABN Amro Holding NV, retreated 4.7 percent to 475.5 pence, its lowest in more than four years.

``There is a clear path, we think, that leads from the current turmoil in credit markets to major trading losses of the U.K. banks with U.S. mortgage and global markets exposure,'' Panmure Gordon & Co. analyst Sandy Chen wrote in a note to clients today.

Barclays, the U.K.'s third-biggest bank, fell 6 percent to 537.5 pence, its lowest in two years, on speculation it approached the Bank of England for emergency funding.

``Barclays is rumored to have gone to the Bank of England for some funding,'' said Mamoun Tazi, an analyst at MF Global Securities Ltd. who has a ``neutral'' rating on the stock. ``My guess it that it's very unlikely, but never say never.''

pennystock-investor.com

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