U.K.'s FTSE 100 Index Declines for First Time in Seven Days; ICAP Falls

U.K. stocks declined, with the benchmark FTSE 100 Index falling for the first time in seven days, as a retreat by ICAP Plc and Burberry Group Plc offset a boost in Intel Corp.’s profit forecast.

ICAP, the biggest broker of transactions between banks, fell 4.6 percent as Chief Executive Officer Michael Spencer said activity slowed in June. Burberry, the U.K.’s largest luxury retailer, fell 3 percent after Deutsche Bank AG downgraded the shares. ARM Holdings Plc rallied 3.1 percent after Goldman Sachs Group Inc. raised its price estimate on the shares by 35 percent and Intel sales beat analysts’ forecasts.

The FTSE 100 lost 0.3 percent to 5,253.52. The gauge remains 9.8 percent below this year’s high on April 15 amid concern that growth will be curbed by austerity measures from European governments cutting their budget deficits and as economic reports in the U.S. and China disappointed investors. The FTSE All-Share Index fell 0.4 percent and Ireland’s ISEQ Index retreated 0.1 percent today.

“We remain in the camp that believes we’re in a slowdown, not a meltdown,” said Liz-Ann Sonders, the chief investment strategist at Charles Schwab Corp., which oversees $1.4 trillion in client assets from San Francisco. “We’ve entered a soft patch for the economy.”

Activity Slowed

ICAP’s Spencer said that activity slowed in June “as our customers’ and end investors’ risk appetites reduced.” Numis Securities downgraded its recommendation on the shares to “hold” from “add,” saying it doesn’t expect to change its full-year forecast and that the shares are trading at “fair value.” The shares fell 4.6 percent to 416.1 pence.

Burberry fell 3 percent to 794 pence after Deutsche Bank downgraded the stock to “hold” from “buy.”

ITV Plc retreated 3.9 percent to 52.4 pence after BofA- Merrill Lynch Global Research lowered its recommendation for the U.K.’s biggest commercial broadcaster, saying the shares are “too expensive.” Analysts downgraded the stock to “underperform” from “neutral” and cut their price estimate 16 percent to 47 pence.

BP Plc fell 2.3 percent to 401 pence as the company delayed testing of a new cap placed over its leaking Gulf of Mexico oil well.

Main Beneficiary

ARM climbed 3.1 percent to 318.5 pence. Goldman Sachs increased its price estimate 35 percent to 350 pence saying the company is a main beneficiary of the tablet computer industry, according to a report today.

The shares were also boosted after Intel, whose processors run more than 80 percent of the world’s personal computers, reported second-quarter sales of $10.8 billion, topping the average analyst estimate of $10.3 billion.

Intel is among 23 companies in the Standard & Poor’s 500 Index in the U.S. that began reporting quarterly results this week. Earnings are projected to have climbed 34 percent in the second quarter and by the same amount in 2010, according to analyst estimates compiled by Bloomberg.

Ashmore Group Plc advanced 3.9 percent to 273.9 pence after the money manager that focuses on emerging markets reported a 7 percent increase in assets under management to $35.3 billion by June 30 from $33 billion on March 31.

London Stock Exchange Plc rose 3.6 percent to 626.5 pence. Europe’s biggest exchange by value of listed stocks said first- quarter revenue rose as the bourse made more money from technology.

ASOS Plc climbed 5.9 percent to 949.5 pence. The online clothing retailer said first-quarter sales rose 48 percent to 65.8 million pounds ($100 million).

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net

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