Printer Friendly

European shares mainly climb after RBS results

Europe's main stock markets mostly rose on Friday, even as The Royal Bank of Scotland
This article deals with the retail bank. "Royal Bank of Scotland" can also refer to its holding company: Royal Bank of Scotland Group."

The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba
 posted massive write-downs and reported its first earnings loss as a public company due to the US subprime crisis.

In late morning trading, the FTSE 100 index FTSE 100 Index

A market-weighted index of the 100 leading companies traded in Great Britain on the London Stock Exchange. The Financial Times
 of top companies stood at 5,5470.90 points, a loss of 0.12 percent, weighed down by losses to heavyweight mining shares, traders said.

The Royal Bank of Scotland's share price jumped 3.43 percent to 241 pence as its losses came in lower than analysts' expectations, dealers said.

Frankfurt's DAX 30 rose 0.11 percent to 6,550.47 points and the Paris CAC See Consumer Advisory Council.  40 gained 0.57 percent to 4,482.93 nearing the half-way mark.

The Euro Stoxx 50 index of leading eurozone Eurozone

same as Euroland

Eurozone neurozona, zona euro

Eurozone nzona euro 
 shares was flat at 3,396.85 points.

The European single currency slid to 1.5163 dollars.

Japanese share prices closed up a third of a percent Friday, rebounding from early losses as investors shrugged off an overnight fall on Wall Street, encouraged by a weaker yen which helps exporters.

US stocks had ended a two-day rally with a nosedive nose·dive  
1. A very steep dive of an aircraft.

2. A sudden, swift drop or plunge: Stock prices took a nosedive.

Noun 1.
 on Thursday as higher oil prices and an unexpected rise in jobless claims Initial Jobless Claims is a report issued by the U.S. Department of Labor on a weekly basis. This report tracks how many people have filed for unemployment benefits in the previous week. It is a good gauge of the U.S. job market.  coupled with fresh financial trouble at Citigroup.

Crude oil futures reversed direction on Friday, sliding by about two dollars a barrel and the market worried about slowing demand for energy, traders said.

RBS RBS Royal Bank of Scotland
RBS Role Based Security
RBS Rollback Segment
RBS Rare Book School (University of Virginia)
RBS Rural Business Cooperative Service
RBS Ribosome Binding Site (genetics) 
 on Friday revealed an 11.4-billion-dollar hit from the US subprime crisis, and a resulting half-year loss among the biggest in British banking history.

RBS, the second-biggest British bank, admitted being humbled by exposure to the subprime crisis and reported a first-half net loss of 802 million pounds (1.56 billion dollars, 1.0 billion euros).

That contrasted with a profit after tax of 3.56 billion pounds during the equivalent period in 2007, it added in its results statement.

The results from RBS gave a lift to some of its peers, with HSBC's share price rising by 1.28 percent to 853.25 pence.

Wall Street meanwhile tumbled on Thursday as it was announced that US banking giant Citigroup had agreed to buy back 7.5 billion dollars' worth of tainted taint  
v. taint·ed, taint·ing, taints
1. To affect with or as if with a disease.

2. To affect with decay or putrefaction; spoil. See Synonyms at contaminate.

 securities it marketed to tens of thousands of investors.

The vast buyback forms part of a preliminary settlement Citigroup has reached with the Securities and Exchange Commission (SEC) and other regulators tied to its marketing of complex debt instruments called auction rate securities.

The settlement, which comes as Citigroup struggles to shake off billions of dollars in losses tied to subprime mortgage investments, could apply fresh stress to the global bank's finances and make it the target of investor lawsuits.
Copyright 2008 AFP European Edition
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright (c) Mochila, Inc.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Publication:AFP European Edition
Date:Aug 8, 2008
Previous Article:Moustache protector, anyone? Weird inventions on show
Next Article:London shares close higher, boosted by banks

Related Articles
HSBC profits rise despite sub-prime woes
BA flies high after talks with American rivals
FTSE higher on drugs and commodities
FTSE high on hopes of duty free
Barclays profits plunge on huge credit-related losses
Barclays profits plunge on huge credit-related losses
RBS falls into huge loss after subprime hit
RBS falls into huge loss after subprime hit

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters