FTSE down as banks weigh on sentiment

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The FTSE is down over a percentage point in afternoon trading with better-than-expected growth figures failing to lift investors as concerns over the banking sector weigh on sentiment.

Lower-than-expected results for UBS, down 4% at one stage, coupled with a warning from Bank governor Mervyn King that Basel III rules might not prevent another financial crisis combined to dampen confidence after figures showed the UK grew 0.8% in Q3. Shortly after 15.30, the FTSE was down 1.09%, or 62 points, to 5,689. Poor US housing data showing home prices accelerated their decline in August also added to the negative sentiment. Despite initially starting off well, most banks are down except Lloyds which is up 0.5%. RBS and HSBC are both over a percentage point in the red. Lead...

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