The merger of Lloyds TSB and Abbey National caused some concern in trading on the Footsie this morni...
The merger of Lloyds TSB and Abbey National caused some concern in trading on the Footsie this morning.
UK stocks fell, slipping 14.4 points to 5936.2.
Analysts say a decision by UK regulators on whether to let Lloyds TSB buy Abbey National Plc will define the terms for mergers and acquisitions throughout British banking. Lloyds TSB fell 12.5p to 735. Abbey National dropped 35 to 1,260.
Lloyds TSB is trying to acquire Abbey National for 19.7 billion pounds to create a bank that controls almost 30% of UK checking accounts and the biggest share of mortgages. Regulators said the plan may violate fair trade rules.
IFX Power plunged 142.5p, or 25%, to 427.5. The designer of components that regulate power supply in electrical equipment, said annual profit may not meet analysts' expectations after orders from the US declined in the second quarter.
WT Foods Plc rose 9 point or 23%, after the food manufacturer and distributor said it's received an approach that could lead to an offer. Its independent directors would back a possible 52p a share bid, the company said.
UK bonds rose, pushing 10-year yields to three-day lows, as investors awaited clues on whether inflation is accelerating enough to prevent the Bank of England from lowing interest rates further.
In Asian markets, Japanese stocks fell, led by Tokyo Electron Ltd and other makers of equipment for the electronics industry, as a drop in business investment caused an unexpected first-quarter contraction in the economy.
The Nikkei is at 13,226.48, down 203.74.
Fujitsu and other computer related stocks also declined after the Nasdaq Composite Index lost 2.2% as Juniper Networks became the latest US company to trim forecasts because of a slowdown in demand for computer networks.
On Friday the Nasdaq closed at 2215.10, after falling 48.90 points. The Standard and Poor's lost 12.00 to close at 1264.96, and the Dow Jones declined 113.74 to 10,977.00.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch