Shares fall as sub-prime crisis deepens2007-08-01 16:56:46

HBOSfell 27.50 to 942 - the UK's biggest mortgage lender beating City expectations as it posted a 13% rise in underlying profit at half time. It also announced its biggest dividend increase since it was formed 6 years ago.

But a weak general market and worries about an 8% fall in profits to £1.04 billion in its core retail banking business - due to further pressures on margins as a result of price competition - hurt the firm's share price.

Cadbury Schweppes gave up 50.75 to 569.25 - the confectioner posting a 78% fall in H1 net income to £182 million - way below the £260 million analysts had been looking for.

And just to rub salt into the wound, the company cautioned that margins are unlikely to improve for the remainder of the year.

British Airways eased 9 to 388.75 - the full service air carrier announcing the biggest fine in its history after confirming it had reached settlements with the U.S. and UK authorities for price fixing.

The total fine of £270 million stems from a discussion between BA and Virgin regarding proposed changes to fuel surcharges imposed on long haul flights.

Virgin Atlantic reported the discussion to the Office of Fair Trading and in doing so won immunity from possible fines.

In the interim the carrier has been under investigation by both the OFT and US Department of Justice. While the civil case against BA will now cease, ongoing enquiries regarding a possible criminal case continue.

BA had set aside £350 million to cover the fines.

Friends Provident added 0.60 to 187.60 - an FT report - using unnamed sources - claming that Zurich Financial is considering a possible approach for the insurer.

The move, if true, comes after insurer Pearl has been building a blocking stake in Resolution in order to scupper its proposed nil-premium merger with Friends Provident.

Easyjet shed 0.75 to 510.75 - the no frills airline reporting Wednesday that institutional fund and advisory services manager, Blackrock Inc - through its Blackrock Investment Management UK Ltd unit - has built a 5.09% stake in the firm.

Northwest Biotherapeutics

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2007-08-01 16:56:46 © Moneyextra.com