UK stocks fall for a second day, HSBC, banks lead retreat
Friday, 22 May 2009
LONDON, May 21 (Bloomberg): UK stocks fell for a second day after the Federal Reserve said the US economy faces "significant downside risks" and Alan Greenspan signaled the financial crisis is not over.
HSBC Holdings Plc, Europe's largest bank, retreated more than 3 per cent as Former Fed Chairman Greenspan warned US lenders will need to raise "large" amounts of money. British Land Co. slumped 4.6 after the property developer reported a record annual loss as its properties slumped in value. Xstrata Plc led mining companies lower as base metals prices retreated.
The FTSE 100 Index dropped 83.74, or 1.9 per cent, to 4,384.67 at 8:39 a.m. in London. The FTSE All-Share Index fell 1.8 per cent, while Ireland's ISEQ Index lost 0.6 per cent.
HSBC retreated 3.8 per cent to 540 pence. Barclays Plc, the U.K.'s third-largest bank, dropped 2 per cent to 287.5 pence and Royal Bank of Scotland Group Plc, majority owned by the government, fell 2.1 per cent to 41.5 pence.
Minutes from the Fed released yesterday signaled the central bank isn't convinced any improvements in the economy will persist. Policy makers said the global financial system still is "vulnerable to further shocks."
Comments from Greenspan yesterday suggested he sees a bigger capital shortfall in the banking system than reflected in regulators' stress tests on the 19 biggest US lenders.
British Land retreated 4.6 per cent to 395 pence. The largest office developer in London said the net loss for the 12 months ended March 31 widened to 3.88 billion pounds ($6.1 billion), or 614 pence a share, from 1.56 billion pounds, or 251 pence, a year earlier. British Land was projected to have a loss of 2.96 billion pounds, according to the median estimate of five analysts in a Bloomberg survey.
"It's too early to call the bottom of the market," Chief Executive Officer Chris Grigg said in a television interview after the results were published.
Xstrata Plc, the world's fourth-largest copper producer, slipped 1.3 per cent to 662.5 pence. Kazakhmys Plc lost 2.8 per cent to 691.5 pence and Antofagasta Plc fell 1.7 per cent to 609.5 pence.
Copper dropped for the first time in six days, pacing a decline in industrial metals, on speculation that a fall in global equity markets may sap investor confidence, curbing demand.
Rio Tinto Group retreated 0.8 per cent to 2,840 pence. Aluminum Corp. of China, the nation's biggest aluminum producer, may take a smaller stake in Rio Tinto to win approval for its $19.5 billion investment, the Sydney Morning Herald said, citing people close to the company.
HSBC Holdings Plc, Europe's largest bank, retreated more than 3 per cent as Former Fed Chairman Greenspan warned US lenders will need to raise "large" amounts of money. British Land Co. slumped 4.6 after the property developer reported a record annual loss as its properties slumped in value. Xstrata Plc led mining companies lower as base metals prices retreated.
The FTSE 100 Index dropped 83.74, or 1.9 per cent, to 4,384.67 at 8:39 a.m. in London. The FTSE All-Share Index fell 1.8 per cent, while Ireland's ISEQ Index lost 0.6 per cent.
HSBC retreated 3.8 per cent to 540 pence. Barclays Plc, the U.K.'s third-largest bank, dropped 2 per cent to 287.5 pence and Royal Bank of Scotland Group Plc, majority owned by the government, fell 2.1 per cent to 41.5 pence.
Minutes from the Fed released yesterday signaled the central bank isn't convinced any improvements in the economy will persist. Policy makers said the global financial system still is "vulnerable to further shocks."
Comments from Greenspan yesterday suggested he sees a bigger capital shortfall in the banking system than reflected in regulators' stress tests on the 19 biggest US lenders.
British Land retreated 4.6 per cent to 395 pence. The largest office developer in London said the net loss for the 12 months ended March 31 widened to 3.88 billion pounds ($6.1 billion), or 614 pence a share, from 1.56 billion pounds, or 251 pence, a year earlier. British Land was projected to have a loss of 2.96 billion pounds, according to the median estimate of five analysts in a Bloomberg survey.
"It's too early to call the bottom of the market," Chief Executive Officer Chris Grigg said in a television interview after the results were published.
Xstrata Plc, the world's fourth-largest copper producer, slipped 1.3 per cent to 662.5 pence. Kazakhmys Plc lost 2.8 per cent to 691.5 pence and Antofagasta Plc fell 1.7 per cent to 609.5 pence.
Copper dropped for the first time in six days, pacing a decline in industrial metals, on speculation that a fall in global equity markets may sap investor confidence, curbing demand.
Rio Tinto Group retreated 0.8 per cent to 2,840 pence. Aluminum Corp. of China, the nation's biggest aluminum producer, may take a smaller stake in Rio Tinto to win approval for its $19.5 billion investment, the Sydney Morning Herald said, citing people close to the company.