Whitbread led decliners in the FTSE 100 index shares with a drop of 2.22% followed by losses in Vedanta Resources of 2.08%, in Lloyds TSB Group of 1.91%, in Barclays Plc of 1.50%, and Antofagasta Plc of 1.42%.

Barclays fell after Chief Executive Officer John Varley said the bank will not rule out raising additional capital, nor mergers and acquisitions. Other financial stocks fell as well. Alliance & Leicester declined 0.87%.

Homebuilders also dropped. Hammerson shed 0.78%, Persimmon edged down 0.74% and Land Securities tumbled 0.74%.


HSBC today reported provision for bad loans of $3.2 billion, which was lower than analyst forecasts of at least $4.2 billion and as high as $4.9 billion.

At the end of March 2008, 5.0% of mortgages in US branch-based consumer lending business were two months or more overdue, compared with 4.2% at the end of 2007. The equivalent figures for our mortgage services business were 12.5% and 11.2%, respectively. This company said that this trend of rising delinquency ratios will continue as balances continue to be run off.

HSBC added 1.9%.

Sharp rise in arrears at Northern Rock

Northern Rock reported today that the number of borrowers behind with their payments by three months has climbed markedly since the bank was nationalized to 0.95% of its outstanding loan book from 0.57% at the end of December.

World markets review

In Tokyo Nikkei 225 Index closed higher 88.02 or 0.64% to 13,743.36, in Australia ASX 200 index higher 56.70 or 0.98% to close 5,828.50. In Malaysia KL Composite index increased 7.82 or 0.61% closed to 1,293.09. Market of Hong Kong was closed today.

In Thailand SET index closed lower 4.49 or 0.53% to 842.22 and Indonesia JSE Index edged increased 2.98 or 0.13% to 2,378.00. Sensex index in India increased 123.90 or 0.74% to 16,860.90. Market of South Korea was closed today.

In London FTSE 100 Index closed higher 15.90 or 0.26% to 6,220.60, in Paris CAC 40 Index increased 15.65 or 0.32% to close at 4,976.21 and in Frankfurt DAX index higher 32.78 or 0.47% to close at 7,035.95. Market of Zurich was closed today.