Shares drag us on warning of a disaster "nuclear Japan".

At one point in New York late Wednesday, the yen strengthened to 76.53 against the dollar late but weakened to 79.04 at the prospect of action coordinated by the G7 countries to limit the damage to the world's third largest economy.

Markets have been at the Bank of the Japan, to intervene as a yen very poorly exporters of the country, potentially deepening damage already serious Japan by multiple disasters.

"It intensified speculation of the Bank of the Japan markets will soon intervene to limit their support of the yen," said analyst NAB Capital David de Garis.

Kaoru Yosano economy Minister insists the currency nor Japanese stock markets are in a State of unrest to justify the action of the g-7 and Tokyo sought was his "psychological support" peers.

Merchants surveyed how the G7 can do as the current market rout is based in large part by uncertainty on how the nuclear crisis will play.

US officials in Washington warned that the plant in Fukushima Dai-ichi can be on the point of spewing more radioactive, as Japanese military helicopters continued to dump water on a stricken reactor to try to avoid that a complete breakdown. They said the Americans to remain at least 50 kilometres of the plant.

"Foreign investors continued to dump stocks on growing fears about nuclear accidents." Also, investors are worried that the earthquake and the nuclear disaster certainly could dent economic growth, "said Masatoshi Sato, a market analyst at Mizuho investors securities."

Main landmarks across Asia were also lower. Hong Kong Hang Seng index lost 2pc, of Shanghai Composite Index slid 1. 2pc, Australia of the ASX dipped 0. 1pc, and the India Sensex fell 0. 4pc. ABN Korea of southern edged up to 0 1pc.

The Central Bank of the Japan injected cash in on the currency markets of Tokyo for three days in a row, an injection of total liquidity 55.6 billion yen (£ 430bn) since Monday.

On Wednesday, the Dow Jones fell 242.12 points-2. 04pc - close to 11613.3, frightened by the fear of nuclear catastrophe. The biggest fallers were IBM (-3.1 8pc), General Electric (-3.1 3pc) and Boeing (-3pc). Business electric and energy were hard these days that the benefits of the Japanese earhtquake and tsunami continues to disrupt supply and grid lines in the country of power.

The & S P 500 fell by 1. 95pc and the technology-rich Nasdaq Composite slid 1. 89pc.

The U.S. index followed the FTSE 100. Despite the British blue-chips opening day until slightly, they fell 1. FP7 - or 97.05 points - a minimum of three months expenses of 5598.23 on Wednesday. France of lost 2 23pc ACC and Frankfurt's DAX fell 2 01pc.

Angus Campbell, head of sales at Capital spreads, said: "investors have received another scare after the Commissioner of the EU energy today announced that the situation there was achieved out of control." Are the vendors because on the market and at one point, that the future Nikkei fell to three hundred points within ten minutes. »

Markets had been agitated throughout the day of the crisis in the power plant nuclear Fukushima damaged by the earthquake in the Japan has intensified.

Guenther Oettinger, Minister of energy of the European Union, said the European Parliament: "In the next few hours it could be more catastrophic events, which could pose a threat to the life of the inhabitants of the island."

He said the nuclear site is "effectively out of control:"cooling systems have not worked, and as a result, we are somewhere between a disaster and a major disaster.""

Feeling the market was still blocked by the increase in the price of oil following clashes in Bahrain, downgrade of a Moody of the debt of the Portugal and the United States poor economic data showing wholesale pricing pressures greater than expected and the recession in construction to a low near record housing.

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ICAG nosedives on Air France profit warning

Analysts at Investec initiated with "hold" rating price target on ICAG and 281 p. While the merger is expected to produce 400 m € of synergies between now and 2015, analysts are wary that these earnings were more than offset by the recent increase in fuel prices.

Accordingly, the broker has concerns about short-term than consensus estimates revenues for the airline are "overly optimistic".

ICAG lost around 13pc since last listing of fears about the price of oil increases their tribute. Earlier this month, the airline said it would increase its fuel surcharge on long distance services to account for "substantial continuous increase" of oil prices

But analysts at Investec said: "given the uncertain economic environment, we are cautious on the ability of airlines to retrieve cost increases through fuel supplements."

ICAG is one of slaughterers more marked on a day where the broader market sank into remuneration disappointing Red following such as Diageo.

Manufacturer of gin Gordon, fell by 58 p to £ 11,95 after that first half missed earnings expectations due to weak sales in Greece, the Ireland and Spain debt-hit.

Diageo slide weighed on the benchmark, with the FTSE 100 falling 92.00 points to 6020.01 while the FTSE 250 hangar 75.01 points to 11721.6.

The index was also dragged by miners, with Rio tinto and Randgold resources lose 146 p to £ 48.94 and 110 p to £ 45.49 respectively. Aft swiped it as one more small planned 5 billion $ (£ 3 billion) share buyback disappointed investors.

But at the other end of the spectrum, autonomy in the ascendant. Software company giving impetus was an upgrade of UBS, moved from its position to "buy" from "neutral," target to 18.00 raised its price £ 17 hours £.

No there was no sign yet of acquisition raised many of autonomy. After failing his fall timeout to complete an agreement, autonomy said its fourth-quarter results earlier this month that the proposed acquisition was "delayed due to changes in the property targeted", but the asset was still available.

Although the market seems cynical Outlook for acquiring autonomy, the broker said that there is still a possible catalyst.

"The market appears to be very skeptical that autonomy is going to close a deal and we believe that actions reflect not only any possible accumulation such an agreement could provide," says UBS analysts.

Autonomy achieved p 35 £ 16.07, while his peer, Wise software, also checked up 6.7 percent 293.4 to take top spot.

Offering an accessory for the blue-chips, too, was Smith & Nephew. Manufacturer of artificial hips and knees earned 15-727 p after solid Q4 numbers is displayed. Alongside its results, the manufacturer of the medical device - which was speculation persisted control - centre said its Executive Director, David Illingworth, is set to retire.

It will be replaced by Olivier Bohuon, Executive Director of pharmaceutical group French and cosmetics, Pierre Fabre. Sebastien Jantet, analyst of the Investec kept its rating on S & N "hold." He said the company had given its more robust statement of outlook in recent years, but added: "positive direction is likely to be offset by the decrease in bid speculation."

The pair through reading took its toll on British Airways and Iberia, it had the reverse effect on WPP. Advertising agency won 12 to 824 p like his French counterpart, Publicis, scores of the year arrives ahead of forecasts.

Among the second liners, investors were also pleased by the results of Hargreaves lansdown. Securities broker advanced 23½ to 570 p after showing an increase in first-half profit.

But at the other end of the scale, Aberdeen asset Management slipped 12.3 percent 215.9 after Numis downgraded its rating to "reduce" from "hold" is based on solid performance for the price of the end of the following investment management group.

Insurers were, however, request with Beazley and Catlin checking up to 3.4 p 134,1 and 393.6 8.1% respectively. Stimulate the latter was new that he had seen a decrease in smaller than expected for the benefit of year-round in spite of 218 m $ in the claims of natural disaster after New Zealand and the Chile earthquakes and floods in Australia.

Broker Bullish commentary had an impact elsewhere in the ranking. dairy Crest advanced 5.2 to 380 percent than evolution analysts upgraded their recommendation on milk supplier and manufacturer from the city cathedral cheese "buy" from "neutral" and pointed to consolidation in the sector.

Broker believes that if Dairy Crest shares does step re - rate, and then he "cannot exclude approach taken control by a trade buyer or private capital.

"Theo Mueller has built a 3pc set in society and we believe that Dairy Crest may be a target of credible tender for Mueller milk products company," said analysts.

Some aim stocks, mineral Pathfinder acquired 1,125 to 7½p on his first day of business relationships.

Meanwhile, Sareum falls 0.825 - or 32 04pc - 2.1% after announcing a placement to raise £ 500,000. Biotechnology has seen its rocket actions around 70pc earlier this week after positive results of a preclinical study in the most common form of adult leukemia.

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Alterian plunges on profit warning

The postponement means that Alterian now expects revenues for the year will be 10pc below the expectations of the market of 42 m £ 44 million pounds.

In response, two brokers issued double downgrades on Alterian, with the two George O'Connor Panmure Gordon and Alex Jarvis of Peel Hunt cut their rating to "sell" from "buy." Slashing its forecast of earnings to £ 4 to £ 8 m. 5 m, Mr. Jarvis said it will be "want visibility on the succession of the Chief Executive."

He added: "the message of the company is that" fundamentally nothing has changed in the enterprise "other than this one Report, although it acknowledges that it was too dependent on the lumpy deals - and new products were released may be too late in the year to make an impact."

Alterian has 35¾ - or 18 9pc - 154 percent while first business software division has also come under pressure. Sage Group fell 3 percent 277.8 and autonomy has dropped from 26% to £ 15,77.

End of last month, autonomy has come under pressure following a bearish note of JPMorgan Cazenove, who argued that the quality of the remuneration of the company was "poor and deteriorating."

Autonomy has been rapid counter criticism, even if, with a series of questions and answers on the section of relations investors of its Web site.

But analysts at Peel Hunt remained unimpressed, keeping their rating to "sell" on autonomy

in a note published towards the end of last week. Autonomy was among the laggards a day when the benchmark is struggling to hold on to its gains.

After having climbed back over 6000 Friday, the market has been rather more muted Monday, with the FTSE 100 closing only 7.06 points to 6016.98. FTSE 250 rose 57.84 points to 11766.57.

Sentiment was lifted by Vodafone agreement awaited inking to sell its stake in the French mobile operator SFR to Vivendi for €7. 75bn (£ 6 MD). However, after initially rising almost 2pc, Vodafone 12,284 0.25-178.85 p.

Peers midcap cable & wireless worldwide checked up 1.85 to 53.05 p.

But profit taking - and concerns about the situation of debt in Ireland and the Portugal - reached banks, with the Royal bank of scotland drag ½ p 41.84 and Lloyds banking Group relaxation 0.68 to 60.32 p.

Other financials were also on the slide, with Man Group the Feller more marked. The Fund Manager of coverage of the world largest enumerated hangar 243.7 p 9.4.

However, a strong performance by the miners helped to keep the blue chips only about in positive territory. The price of pink money, precious metals miner Fresnillo on 46 p to £ 16.11.

Among ships of a second, iron ore producer Ferrexpo was higher to 470.2 p, with rumours of bid of 22 towers.

Return to the top flight, Aggreko was leading the charge. Provider of temporary power jumped 84 p to £ 16.78 struck a pact with Tokyo Electric Power Company, owner of the Fukushima nuclear plant - to ship gas and diesel generators to the Japan, which will supply emergency electricity and the grid in June.

After having shed much blood the week last after a shock warning from Dixons, snippets of retailers profit were on the place. Next and Kingfisher spent 46 p to £ 20.46 and 258½p respectively 4.7.

However, the could not be said for Dixons, which continue to suffer, falling 0.73 p 11.99.

Colleagues midcap retailers, Ocado and Greggs were down 4.1-227 p and 18 to 510 p respectively.

Cranswick, which supplies the sausages to retailers and manufacturers, slid 41 790 p as the company became later to highlight a difficult outlook with faltering consumer confidence.

In a statement, Cranswick suggests that the coming year may be "more demanding to habit" explains in part by the difficulties encountered by the UK consumer.

Weakening of consumer confidence was also worried analysts at Jefferies. Last month, they noted that ITV could be affected by a cooling market advertising as retailers could reduce their marketing expenditures.

Monday, the broker said that the events is held "quickly as expected" and they were now see evidence that television advertising UK weaken with the market in May 3 - 4pc not 2pc - 1 nearest down previously.

"It was a bad week for the UK retail sector news flow, highlighting the vulnerability of the greatest source of the diffuser of advertising spend,"added Jefferies, who recorded the results a "lower" rating on ITV."."

However, ITV reached 1.25 79.8%.

The count was too much Johnson matthey, which rose 19 percent to £ 19.18 as specialty chemicals sector is encouraged by the news of the Belgian group, Solvay, buy his French counterpart, Rhodia, for taking of 3 euros (£ 3). The agreement prompted Liberum Capital to consider who else could be ripe for a takeover in the sector.

Analysts believed that midcap Crodaof strong cash flow and earnings per share growth was "an obvious attraction." Croda reached 24 p £ 17.18.

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Saudi ruler offers $36bn to stave off uprising amid warning oil price could double

The growing turmoil in the region led experts to warn last night that Brent crude oil prices may double from the $111 a barrel mark it peaked at yesterday if the crisis continues to spread to other Middle Eastern countries.

Nomura's commodity team said oil prices risk vaulting to uncharted highs over coming weeks if chaos hits Algeria as well, reducing global spare capacity to the wafer-thin margins seen just before the first Gulf War.

On Wednesday, Brent crude rose more than 5pc to almost $112 a barrel, threatening levels that could derail the global economy. It closed at $111.25.

"We could see $220 a barrel should both Libya and Algeria halt oil production. We could be underestimating this as speculative activiites were largely not present in 1990-1991," said Michael Lo, the bank's oil strategist.

The warning came as Italy's ENI announced a suspension of supplies through Libya's gas pipeline, and a string of foreign companies evacuated staff and shut production. Libya holds Africa's biggest oil reserves and produces 1.6m barrels a day (b/d), mostly for export to Europe.

The German driller Winthershall halted its 100,000 b/d production in Libya, while ENI stopped at a string of sites, vastly reducing its flow of 550,000 b/d. A number of producers have declared "force majeure".

Barclays Capital said 1m b/d of Libyan output is "shut in", with the other 0.6m at risk. While Saudi Arabia can step in by raising output, this takes time and its oil is not a substitute for Libya's "sweet crude".

The escalating crisis set off further falls on global bourses. Wall Street was down 1pc in early trading and the FTSE 100 fell 1.2pc. The Dow has shed more than 300 points over the past three days to 12,075.

Nomura said a shut-down in both Libya and Algeria would cut global supply by 2.9m b/d and reduce OPEC spare capacity to 2.1m b/d, comparable with levels at the onset of the Gulf War and worse than during the 2008 spike, when prices hit $147.

Both price shocks preceeded – or triggered – a recession in Europe and the US. Fatih Birol, chief economist for the International Energy Agency, said the latest price rise had already become a "serious risk" for the fragile economies of the OECD bloc.

Some analysts fear the underlying picture is worse that officially recognised, doubting Saudi claims of ample spare capacity. A Wikileaks cable cited comments by a geologist for the Saudi oil giant Aramco that the kingdom's reserves had been overstated by 40pc. A second cable cited US diplomats asking whether the Saudis "any longer have the power to drive prices down for a prolonged period".

Nomura's report, which does not examine the catastrophic scenario of a full-blown Gulf crisis, said past oil shocks have shown a three-stage pattern, with a final blow-off in prices in the final phase. The current crisis is at stage one.

Surging oil prices create a nasty dilemma for central banks since they are inflationary if caused by robust global growth, but deflationary if caused by a supply crunch that acts as a tax on consuming nations. The big oil exporters tend to save extra revenues from price spikes at first, so the initial effect is to drain global demand.

The current picture contains elements of both, with an added twist of liquidity created by the US Federal Reserve that is leaking into the global system and playing havoc with commodity pricing.

US Treasury Secretary Tim Geithner said on Wednesday that the world economy is stong enough to "handle" the oil shock, insisting that central banks "have a lot of experience in managing these things".

The European Central Bank (ECB) responded to the oil spike in July 2008 by raising rates even though Germany and Italy were in recession by then. Nout Wellink, the ECB's Dutch governor, said this had been a policy error.

Circumstances are different this time yet also murky. ECB chief Jean-Claude Trichet signalled last month that the bank will "look through" the short-term price hump, but ECB rhetoric has since turned more hawkish. Fed doves will undoubtedly give more weight to the deflationary risks.

Jeremy Leggett, a leader of the UK industry task force on peak oil and energy security, said the Mid-East crisis "shows the extreme fragility of the global system. People don't realise how close we are to a potential precipice if this unrest reaches critical mass in enough OPEC countries. Governments need to draw up emergency plans and get cracking on proactive measures while we still have time," he said.

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Saudi ruler offers $36bn to stave off uprising amid warning oil price could double

The growing turmoil in the region led experts to warn last night that Brent crude oil prices may double from the $111 a barrel mark it peaked at yesterday if the crisis continues to spread to other Middle Eastern countries.

Nomura's commodity team said oil prices risk vaulting to uncharted highs over coming weeks if chaos hits Algeria as well, reducing global spare capacity to the wafer-thin margins seen just before the first Gulf War.

On Wednesday, Brent crude rose more than 5pc to almost $112 a barrel, threatening levels that could derail the global economy. It closed at $111.25.

"We could see $220 a barrel should both Libya and Algeria halt oil production. We could be underestimating this as speculative activiites were largely not present in 1990-1991," said Michael Lo, the bank's oil strategist.

The warning came as Italy's ENI announced a suspension of supplies through Libya's gas pipeline, and a string of foreign companies evacuated staff and shut production. Libya holds Africa's biggest oil reserves and produces 1.6m barrels a day (b/d), mostly for export to Europe.

The German driller Winthershall halted its 100,000 b/d production in Libya, while ENI stopped at a string of sites, vastly reducing its flow of 550,000 b/d. A number of producers have declared "force majeure".

Barclays Capital said 1m b/d of Libyan output is "shut in", with the other 0.6m at risk. While Saudi Arabia can step in by raising output, this takes time and its oil is not a substitute for Libya's "sweet crude".

The escalating crisis set off further falls on global bourses. Wall Street was down 1pc in early trading and the FTSE 100 fell 1.2pc. The Dow has shed more than 300 points over the past three days to 12,075.

Nomura said a shut-down in both Libya and Algeria would cut global supply by 2.9m b/d and reduce OPEC spare capacity to 2.1m b/d, comparable with levels at the onset of the Gulf War and worse than during the 2008 spike, when prices hit $147.

Both price shocks preceeded – or triggered – a recession in Europe and the US. Fatih Birol, chief economist for the International Energy Agency, said the latest price rise had already become a "serious risk" for the fragile economies of the OECD bloc.

Some analysts fear the underlying picture is worse that officially recognised, doubting Saudi claims of ample spare capacity. A Wikileaks cable cited comments by a geologist for the Saudi oil giant Aramco that the kingdom's reserves had been overstated by 40pc. A second cable cited US diplomats asking whether the Saudis "any longer have the power to drive prices down for a prolonged period".

Nomura's report, which does not examine the catastrophic scenario of a full-blown Gulf crisis, said past oil shocks have shown a three-stage pattern, with a final blow-off in prices in the final phase. The current crisis is at stage one.

Surging oil prices create a nasty dilemma for central banks since they are inflationary if caused by robust global growth, but deflationary if caused by a supply crunch that acts as a tax on consuming nations. The big oil exporters tend to save extra revenues from price spikes at first, so the initial effect is to drain global demand.

The current picture contains elements of both, with an added twist of liquidity created by the US Federal Reserve that is leaking into the global system and playing havoc with commodity pricing.

US Treasury Secretary Tim Geithner said on Wednesday that the world economy is stong enough to "handle" the oil shock, insisting that central banks "have a lot of experience in managing these things".

The European Central Bank (ECB) responded to the oil spike in July 2008 by raising rates even though Germany and Italy were in recession by then. Nout Wellink, the ECB's Dutch governor, said this had been a policy error.

Circumstances are different this time yet also murky. ECB chief Jean-Claude Trichet signalled last month that the bank will "look through" the short-term price hump, but ECB rhetoric has since turned more hawkish. Fed doves will undoubtedly give more weight to the deflationary risks.

Jeremy Leggett, a leader of the UK industry task force on peak oil and energy security, said the Mid-East crisis "shows the extreme fragility of the global system. People don't realise how close we are to a potential precipice if this unrest reaches critical mass in enough OPEC countries. Governments need to draw up emergency plans and get cracking on proactive measures while we still have time," he said.

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Warning shot for America and Europe as S&P downgrades Japan

In contrast to Europe, Japan has barely started to tighten its belt, drifting on with a budget deficit that will be 8pc of GDP as far out as 2013. "This is not affordable. Japan is running out of the domestic financial assets to absorb the debt," said Mr Ogawa.

Japan's population has been contracting since 2005, pioneering a fate that awaits much of Europe and Asia. Its median age is a world record at 44.4 years, and rising fast. The population will fall from 127.5m to 89.9m by 2055, according to Japan's Social Security Resarch Institute. "Despite this bleak demographic outlook, Japan has no specific measures or plans to deal with its diminishing and aging population," said S&P.

Japan was downgraded repeatedly between 1998 and 2002 without suffering much harm but that was in a different world, before the global credit crisis shattered illusions about the sanctity of sovereign debt.

The Bank for International Settlements has warned that simmering fiscal problems in the rich countries are nearing "boiling point", with a risk of an "abrupt rise" in bond yields as investors choke on excess debt.

Kaoru Yosano, Japan's economy minister, called S&P's decision "regrettable" given that the government is working on a plan to overhaul the tax and social security system. "I hope the world will understand our sincere efforts to carry out fiscal consolidation. I believe confidence in Japan will not be shaken."

Mr Yosano himself said last week that Japan has reached a "critical point" where investor patience might suddenly snap. "We face a dreadful dream that one day the long-term interest rate might rise."

Mr Jessop said the S&P downgrade is no shock since the country was already on negative watch. However, the Democratic Party of Japan – hampered since June by a hung parliament – has not yet shown that it is "up to the job" of restoring discipline.

"If the government gets this wrong, Japan could be the first Asian casualty of the global financial crisis. Markets have tolerated Japan's awful fiscal position because it was the fastest growing economy in the G7 last year, thanks to a rebound in exports and fiscal stimulus. But it all started to go horribly wrong in the fourth quarter when the economy almost certainly contracted again," he said.

Adarsh Sinha from Bank of America said Tokyo is on borrowed time but does not expect a bond crisis this year. "Inexorable structural forces mean that each year brings us closer to when the domestic pool of saving will be insufficient to finance Japan's public debt. However, 2011 is unlikely to be the tipping point for this disorderly adjustment."

Tax revenues covered just 52pc of spending in 2010. Almost half the budget was borrowed. Even in the boom year of fiscal 2007 revenues covered only 70pc of outlays, so the problem is clearly chronic and not caused by the recent recession.

The IMF's latest Article IV report on Japan warns that without a shift in policy the "public debt-to-revenue ratio" will rise from 263pc three years ago to 482pc by 2015. No country in peacetime has ever pushed the fiscal boundaries so far and emerged unscathed.

Peter Tasker from Arcus Research, a venerated Tokyo expert, said horror stories about Japan's debt have been the stuff of folklore for years, yet borrowing costs have fallen ever lower anyway because the country is "entirely self-financing". If need be, the Japanese can squeeze a lot more tax from their under-taxed economy.

"Rather than a 'dreadful dream', Japan's leaders face an enticing reality. They have the opportunity to issue more and more bonds at the lowest interest rates seen since the Babylonians invented accounting. Japan needs to forget about the views of credit agencies, which have not had a terribly good track record recently," he wrote recently.

Japan has certainly been shielded from global vigilantes so far because 95pc of its debt is held by local investors, allowing Tokyo to issue 10-year bonds at just 1.21pc. It is far from clear that this can continue. The Government Pension Investment Fund (GPIF) – the biggest holder of Japanese debt – has switched from net buyer to net seller as it meets payout costs for retiring baby-boomers.

Dylan Grice, a noted Japan bear at Societe Generale, said the country's ageing crisis would bite in earnest in two to three years, causing pensioners to run down their assets. The savings rate has already dropped from 15pc of GDP in 1990 to under 3pc. It may soon turn negative, depleting reserves needed to soak up state debt.

"They will have to turn to foreign investors, who will demand higher yields of 4pc to 5pc. The government will not be able pay this because interest payments are already 28pc of tax revenues," he said.

"If they try to correct it by a fiscal contraction [raising taxes] they will cause a depression that dwarfs anything in Greece. The Japanese are facing a problem that no country has ever faced before. I think Japan is already is beyond the pale," he said.

Mr Grice predicts the get-out-of-jail-free card will prove to be some sort of stealth default through inflation, perhaps spiralling into hyperinflation very fast once the genie is out of the bottle.

James Bullard, the head of the St Louis Federal Reserve, said recently that the US is "closer to a Japanese-style outcome today than at any time in recent history". That bears thinking about.

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Market report: Lloyds hit by profit warning rumours

"While the da [Lloyds Director of finance responded] issues with confidence, it recognizes the risks to the economy," said Steven Hayne. He added: "orientation is based on clear economic assumptions - we think investors own view on how the economy will recover continues in 2011 is the key for the case of Lloyd investment ' S.

M. Hayne concluded: "our take is that it seems that some analysts have margin too optimistic assumptions for the second half of 2010."

Lloyd's fell 1.7 70½p while the rest of the banking sector is in demand.Royal Bank of Scotland(RBS), then from 0.6 to 46.9 percent after the better than expected Goldman Sachs figures.

The FTSE 100 is points 5703.89 38.63 and FTSE 250 lost are 48.88 10826.21 points after the Central Bank of China raised unexpected increases in the rate of interest for the first time since 2007.

Mining stocks dragged down blue-chip index for the second consecutive day. This is in part, to increase interest rates has caused the dollar rally decision chinoise.Les gold mining stocks have been especially hard.Fresnillo fall 68% to £ 12.23 then Randgold resources decreased by 195% to £ 62.25.

Base metal mining stocks, Xstrata lost 57 p to £ 12,48 after the largest exporter of central coal production of coal from third quarter said 5MC.Ailleurs sector, Vedanta Resources fell 79 p to £ 21.74 and Antofagasta 44 £ 12.44 p.

Area defenace, BAE Systems throw a 6 percent to 363.9 after the results of the third quarter of rival Lockheed Martin.Goldman Sachs noted that Lockheed Martin has said the industry has experienced "many" delays in program decisions as well as programme and certain adjacent markets cancellations are revealed to be "less mature" than previously expected.

Babcock International slipped 28½-564 p after the Prime Minister, describes the scope of the defence budget cuts."I suspect its [share prices] do with reduced service and support and the potential threat for the Trident, that they have an interest in maintaining,", said David Hiley, a strategic Jane-advice services consultant.

Designer chip ARM fell 10.4 388¾p traders chewed on news that Apple has planned a profit $ 4.80 about one part in the current quarter, which includes shopping year-end holiday season.Analysts surveyed by Bloomberg had predicted 5.03 profit $ per unit.

On a more positive tack, Diageo has increased by 28% to £ 11.63.Il ago rumors that towers may be interested in buying spirit division of LVMH, if the French group manages to obtain a Hermes acqurie agreement last week.

Real estate companies were in vogue as Land Securities, 5 678 p, formed a joint venture with Canary Wharf group to start development skyscrapers talkie walkie 20 Fenchurch Street .the ' agreement allows land securities resuming the speculative construction plan without a pre-let early society million pounds in rental incentives might.It shows also demand long-term major offices is bucking current economic woes in the United Kingdom.British land earned 3 504½p and Hammerson established 416.6 p 1.3.

Grouped index, Xchanging decreased 8.9 to 129.6% after Matrix downgraded on the part of "selling".Matthew Earl, an analyst at Matrix, said: "" see us lower growth prospects for Xchanging short or medium term relating to a consensus and believe that investor concern concerning the Group of expected cash poor performance in 2010 is likely to take some time to address. ""

Bellway has also discard 36½ to 565 p after muted fall home sales force to cut its target throughout the year.

Exploration of the Rockhopper withdrew 324¾p 12 once she raised 206 m £ via placement-315 p a share.

However, "buy" advice from Goldman Sachs raised Charter international 21 to 803 p. "Charter trades at a deep discount peer industrial, but offer returns sustained top-quartile cash and attractive in emerging markets, growth prospects" said Will Wyman, an analyst at Goldman Sachs.Il added: "we believe shares offer hardware potential profitability and re-rating forecast in advance of consensus on strong trade continues to ESAB, compatible with a cycle of steel recovery."

Mothercare was 26½ 523½p after UBS upgraded the stock to "buy".Isabel green, the UBS analyst said: "understand us Mothercare back share lost in toys repositioned its bid and like-for-like sales growth should remain negative in the second half, we believe that risk compensation is balanced upside."

Panmure Gordon tempered 28½p after changing 2½ stated that it had submitted a tentative proposal for the broker, but it had been rejetée.Évolution up 4½ 88½p, said he did not intend to make an offer for Panmure Gordon.

Black Entertainment stir-fry 42½p 9½ after Group confirmed an article published in The Daily Telegraph, was named McQueen, the corporate advisory firm, after approaches possible support.

The retailer, who holds the millet chain stores, said that it was "in preliminary discussions with several parties regarding a possible offer for the company or an offer to acquire certain business and assets of the company".

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