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NEWS - INVESTMENT

Morning Markets: Barclays drops 3% in flat FTSE opening

05 Aug 2010 | 09:43
David Walker

Categories: Investment

Topics: Barclays capital | Barclays bank | Aviva | Schroders | Nikkei 225 | Dow jones | Ftse 100

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Barclays shares are 3% lower in early trading despite posting profits of almost £4bn in the first half.

Stronger results from Aviva and RSA has helped the FTSE trade broadly flat this morning, down just 0.03% at 5,384.28 points.

Aviva opened 2.8% higher at 378.1p after announcing it will boost its dividend by 6% on first half profit growth of 21%. Its sales of life and pension products helped produce an operating profit of £1.27bn, exceeding the £1.17bn analysts expected.

RSA Insurance also rose, by 4.1% to 133.8p, after chief executive Andy Haste announced an increase in the interim dividend.

Schroders also rose, by 2.4% to £13.70, after reporting first half pre-tax profit of £188.2m, compared to £36.3m a year ago.

A 44% increase in first half profits to £3.95bn at Barclays, including £3.4bn from its investment banking arm Barclays Capital, could not prevent its shares dropping 2.8% to 330.5p.

Unilever also dipped, by 2.2% to £17.90 after chief executive Paul Polman said the macro-economic picture for his firm remained challenging.

In Europe, France's Cac 40 and the German Dax were also broadly flat early.

In the US, the Dow Jones closed up 0.4% at 10,680.43 overnight after a report showed employers added 42,000 private sector jobs in July, above the 30,000 widely expected.

Motorola rose 5.8% to $8.06 on news activist Carl Icahn increased his stake, while Goldman Sachs gained 2.1% to $156.41 on rumours it will put traders into a separate fund, or into its in-house asset management arm.

Japan's Nikkei 225 rose 1.7% to 9,653.92 on the back of Toyota raising its profit estimate by 10%, which sent its shares 0.5% higher.

Shares in Isuzu Motors, which doubled its profit forecast, jumped 6%.

 

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Categories: Investment

Topics: Barclays capital | Barclays bank | Aviva | Schroders | Nikkei 225 | Dow jones | Ftse 100

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