By Carla Mozee, MarketWatch
U.K. stocks fell Monday, with shares of BP PLC struggling, but
HSBC PLC outperformed after a report the company is looking at
spinning off its U.K. retail bank.
The FTSE 100 was down 0.5% to 7,036.93, with only the financial
and basic-materials sectors gaining.
BP PLC (BP) shares were down 0.9% after the U.K. government told
the oil giant that it would oppose any potential foreign takeover
(http://www.marketwatch.com/story/bp-told-uk-government-would-oppose-a-foreign-takeover-2015-04-27)
of the British heavyweight. As oil prices have slid, there's been
speculation about possible deal-making involving BP. This month,
Royal Dutch Shell PLC agreed to take over BG Group PLC .
But HSBC shares topped the FTSE 100, rising 2.8% after a Sunday
Times report the lender is weighing a deal valued at 20 billion
pounds ($30.4 billion) that would see it spin off its retail bank.
HSBC said on Friday that it's thinking about moving its
headquarters out of London
(http://www.marketwatch.com/story/hsbc-considers-quitting-the-uk-2015-04-24)
as it assesses changes in the U.K. regulatory landscape. A move out
of London could prompt Asia-focused HSBC to shed its British retail
operations.
Read: HSBC may ditch London, but most other banks likely to stay
put
(http://www.marketwatch.com/story/hsbc-may-ditch-london-but-dont-expect-a-flood-of-lenders-to-leave-2015-04-24).
Centrica shares were down 0.2%. The parent company of British
Gas said it's trading in line with guidance
(http://www.marketwatch.com/story/centrica-trading-in-line-with-guidance-2015-04-27-34853946),
with colder-than-normal weather in the U.K. and North America
leading to higher energy consumption.
Meanwhile, retailer Sports Direct International's shares rose
1.4% following a RBC Capital Markets ratings upgrade to sector
perform, from underperform. "Although we believe consensus EPS
forecasts are too high owing to dollar-sourcing risk, valuation has
corrected to more in line with historic averages and the sector,"
RBC Capital Markets analysts said.
Meanwhile, Greece's debt crisis is still being watched by
investors. A small band of European ministers have raised the
possibility of coming up with a "Plan B"
(http://www.marketwatch.com/story/some-europe-ministers-suggest-plan-b-if-greece-talks-fail-2015-04-27)
if talks on continued financing for Greece fail. While this
suggestion was rejected by the Eurogroup chairman, Jeroen
Dijsselbloem, the idea shows the extent to which many of the
eurozone's decision makers no longer believe a deal on new bailout
aid for the government in Athens can be sealed before the old one
expires at the end of June.
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