From Standard & Poor's European MarketScope
British Airways shares fell £0.12 to £2.61 on news of several blasts that shut down the underground system in London, triggering fears of possible terrorist action. Other travel, airline, and leisure stocks under pressure included Hilton, down £0.12 to £2.86 and Intercontinental Hotels, down £0.23 to £6.98, and BAA, down £0.23 to £5.96. Insurers, including Aviva,which fell £0.26 to £5.99, also suffered in the wake of the bombings.
Diageo fell £0.44 to £7.94.after CSFB lifts target to £9.00 from £8.30 and keeps outperform. Co. says sales trends continued to impact trading in 2H. Adds volume growth and mix improvement slowed as the result of tougher trading in Europe and a slowdown in the ready to drink segment in the US. Sees organic operating profit growth for FY05 in line with the guidance of 6% given at the time of the interim results.
HSBC was down £0.15 to £8.93 as the Bank of England announced that it is to keep interest rates unchanged at 4.75%. CSFB cut its estimates.
Rolls-Royce was down £0.09 to £2.92after the company won a £48 million contract to support the UK fleet of AE 2100 engines for the advanced C-130J Hercules aircraft.
Shares in European insurers are worst hit this morning after several blasts in the London underground, including SCOR, down €0.12 to €1.61, and AXA, down €0.95 to €20.25.
Leisure, transport and insurance hit after blasts hit the London underground network. Accor was down €1.21 to €38.68, Air France-KLM was down €0.45 to €12.13.
Danone shares jumped €3.15 to €76.00 after Challenges magazine said PepsiCo. is preparing a takeover bid on Co. worth as much as €30bn. Note, however, PepsiCo yesterday denied the magazine's claim that it had built up a stake of about 3% in Co.
France Telecom was down €0.30 to €23.86after the company and Microsoft unveiled a partnership on Wednesday. They will jointly develop a range of handsets and will work together on a system to combine voice, video and data services over fixed and mobile networks.
German insurers under pressure in the wake of the London bombings include TUI AG, down €1.13 to €19.95, Munich Re, down €4.55 to €84.55, and Allianz, down €4.08 to €93.72.
DaimlerChrysler was down €0.99 to €32.72 after the carmaker reported that June sales rise 5% on new models with Mercedes car group selling 111k vehicles in the period. The company plans a new mid-size truck model for the U.S. market.