Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

LONDON MARKETS: Barclays Rally Leads London Stocks Higher

02/12/2013 | 02:07pm US/Eastern

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Shares of Barclays PLC led U.K. stocks higher on Tuesday after the bank said it would cut costs as part of a strategy overhaul.

The FTSE 100 index rallied 1% to close at 6,338.38, adding to 0.2% gain from Monday.

Barclays (>> Barclays PLC) jumped 8.6% as the bank announced a strategy to refocus investments in Africa, the U.S. and the U.K., in a plan that will slash at least 3,700 jobs, mainly from its investment bank activities. The cost-cutting is expected to shave off 1.7 billion pounds ($2.66 billion) from the bank's cost base down to around GBP16.8 billion by 2015.

Additionally, Barclays posted a net loss for 2012 of GBP1.04 billion, mainly due to a noncash charge from the increasing value of its own debt.

"Today's numbers are solid and the strategic outlook offers a beacon of light in the sector gloom. We remain buyers," said Ian Gordon, analyst at Investec Securities, in a note.

"We welcome the continuing attack on excessive [investment bank] pay. In this division, [former Chief Executive Bob Diamond] cut costs from GBP8.3 billion in 2010 to GBP7.3 billion in 2011. [CEO] Antony Jenkins has achieved a reduction to GBP7.2 billion in 2012 (including GBP0.2 billion of the LIBOR settlement), and we expect further significant progress," he added.

Other U.K. banks followed Barclays higher, with shares of Lloyds Banking Group PLC up 5.1%, Royal Bank of Scotland Group PLC 4.1% higher and sector heavyweight HSBC Holdings PLC (>> HSBC Holdings plc) up 1.5%.

On the data front in the U.K., figures from the Office for National Statistics. showed the consumer prices index--the government's target measure for inflation--rose 2.7% in January, marking the fourth consecutive month at that level.

"Whilst CPI inflation, overall, has remained unchanged for four months now, we do see near term pressures lying to the upside of this recent range. We continue to judge that the knock-on effect of last summer's U.S. droughts are likely to feed through to higher food prices as we head further through this year," said Victoria Clarke, economist at Investec Securities in a note.

"We judge that these pressures are likely to push CPI inflation above 3% by the middle of this year," she said.

Also on the rise in the U.K., shares of International Consolidated Airlines Group SA picked up 2.6%. The company said Iberia has started the formal collective redundancy process over 3,807 jobs as part of a transformation plan to implement structural changes in efforts to return to profitability.

On a more downbeat note in London, mining firms posted losses, even as most metals prices were on the rise.

Antofagasta PLC fell 1.1%, BHP Billiton PLC (>> BHP Billiton Limited) dropped 0.4% and Kazakhmys PLC lost 0.5%.

Shares of BAE Systems PLC dropped 1.8%, as J.P. Morgan Cazenove initiated coverage of the defense and aerospace firm with a neutral rating. The analysts said it believes BAE faces major structural problems and is likely to underperform the sector over the next 12-24 months.

Reed Elsevier PLC fell 0.9%, as HSBC cut the academic publisher to neutral from underweight.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article : Barclays PLC, HSBC Holdings plc, BHP Billiton Limited
React to this article
Latest news
Date Title
11:16p GRUPO BTG PACTUAL : Material Fact - Changes in Management
11:16p HUSCOKE RESOURCES : Suspension of trading
11:16p MINISTRY OF PETROLEUM AND NATURAL GAS OF REPUB : Global crude oil price of Indian Basket was US$ 41.01 per bbl on 27.11.2015
11:16p AUSTRALIA AND NEW ZEALAND BANKING : ANZ announces Business Growth Program participants for 2016
11:11p DOSM DEPARTMENT OF STATISTICS MALAYSIA : Selected Agricultural Indicators, Malaysia 2015
11:10pDJOil Prices Subdued; Focus on Central Bank and OPEC Meetings
11:06p VW to recall 2.46 million German cars with illegal software - Die Welt
11:06p MURCHISON : 25-11-2015quest investments ltd announcement to the asx
11:06p AAC AUSTRALIAN ALUMINIUM COUNCIL : Boyne Smelters Begins Aluminium Can Recycling
11:03p Net Asset Value(s)
Latest news
Hot News 
OPPORTUNITY INVEST MGMT : 27 november 2015 - Announcement AGM on 22 december 2015
ATLANTIS RESOURCES : Tidal generating firm announces long partnership for investment by Gordon Calder
CYTOTOOLS : berichtet über Ergebnisse der europäischen klinischen Studie Phase III: Resultate der Behandlung des diabetischen Fußes mit DermaPro(R) bestätigen nicht die Ergebnisse der vorangegangenen Studien (DGAP News)
EUROPA OIL & GAS : Environment Agency asked to look at Leith Hill drilling firm's finances before giving permit
IMAGINATION TECHNOLOGIES : Sir Hossein Yassaie receives 2015 Lifetime Achievement Award in annual Elektra European Electronics Industry Award...
Most Read News
06:19p Major New Business Events Headed for Bermuda in 2016
06:15p How Long Will It Take to Close the Global Gender Gap? Almas Jiwani at Naseba's Women in Leadership Conference in Abu Dhabi, UAE
06:31p Annual report fy2015
06:31p Notice of annual general meeting
08:50p SARAWAK PLANTATION BHD : Provision Of Financial Assistance
Most recommended articles
11:10pDJOil Prices Subdued; Focus on Central Bank and OPEC Meetings
11:06p VW to recall 2.46 million German cars with illegal software - Die Welt
10:50pDJASIAN SHARES : China's Broker Probes Weigh on November Stock Gains -- Update
10:45p Asia shares fall on China caution, yuan jumpy ahead of IMF decision
10:44p Asia shares fall on China caution, yuan jumpy ahead of IMF decision