News

London's tops stocks are seen marginally lower with traders predicting the FTSE 100 will begin 9 points lower.

Barclays saw profits fall 33% in first half to £2.75bn. The group said net income, after impairment charges, of £9,395m was 14% lower than 2007 and included net losses of £1,979m on credit market exposures.

"The conditions in the market that we have seen over the course of the last twelve months are as difficult as we have experienced in many years. Although I take some comfort from our relative performance in managing our risks and in generating income, a decline in profit of 33% is acutely disappointing," said the group.

Platinum miner Lonmin said the unsolicited offer from rival Xstrata is "wholly inadequate" and asked shareholders to reject the bid.

"The directors of Lonmin strongly advise shareholders to take no action in respect of the pre-conditional offer and to reject the approach," it added. Xstrata yesterday proposed a £33 per share cash offer, worth around £5bn.

Property firm Hammerson slumped into interim losses of £417m from a profit of £367m in the same period last year. The value of its investment portfolio was reduced by £407m in the half against a gain of £323m last year. Adjusted net asset value per share fell 9.9% to £13.92.

"The conditions in the international debt markets are the most difficult to have been experienced for many years. This has led to falls in real estate values in a number of markets and it is difficult to predict when conditions will improve," said the group.

Insurer Friends Provident saw underlying profit before tax on a European embedded value basis fall 20% to £211m. On an IFRS basis, underlying pre-tax profit slipped to £13m from £111 in the same period last year.

In the press, potential bidders for Paragon could complete their due diligence as early as next week when many of the UK buy-to-let mortgage lender's senior managers return from holiday for further talks about a possible investment, reports the FT.

The former chief executive of the De Vere hotels group has emerged as a leading candidate to succeed Sir Stuart Rose as chief executive of Marks & Spencer, says the Times.

American Airlines, British Airways and Spain's Iberia, three carriers on the verge of unveiling a transcontinental venture, will brief US transport officials on Monday on the merits of their alliance, says the FT.

Meanwhile, the Times says the Office of Fair Trading is set to unveil plans today to charge four past and present executives of British Airways with criminal price-fixing offences.