* FTSE flat
* Banks higher after Barclays results
* Miners wane following below forecast China inflation
By David Brett
LONDON, Feb 15 (Reuters) - Britain's top share index
remained flat by midday on Monday, with buoyant banks offsetting
retreating miners as investors welcomed results from Barclays.
The British bank was the top gainer, up 3.6 percent, after
reporting a forecast-beating 32 percent rise in annual earnings,
though but warned that tougher regulations will result in lower
returns. []
Peer Lloyds Banking Group <LLOY.L>, which reports results on
Feb 25, was up 2.4 percent.
By 1155 GMT, the FTSE 100 <> was 1.2 points or 0.02
percent higher at 6,058.89, after it fell 0.1 percent lower on
Monday, with traders putting the muted moves down to macro
economic concerns.
Miners <.FTNMX1770> fell after Chinese consumer price
inflation came in lower than earlier consensus forecast.
[]
Anglo American <AAL.L> slipped 2.3 percent after Citigroup
downgraded it to "hold" from "buy" on valuation grounds.
UK Inflation surged to 4 percent, double the Bank of
England's target in January. []
The BoE looks certain to revise up its near-term inflation
projections, and will probably lower its short-run growth
projections. []
Meanwhile, French and German fourth-quarter GDP missed
missed forecasts. [] []
"Sustainable growth is the key issue for investors. Most
believe the chances of double-dip recession have faded, but
worries remain over whether growth expectations can be met,"
Jimmy Yates, head of equities at CMC Markets, said.
EARNINGS EYED
Data from Thomson Reuters StarMine showed 65 percent of 106
European companies that have posted fourth-quarter numbers have
met or beaten forecasts, in line with a 69 percent beat or meet
rate by U.S. companies. []
Real estate company British Land <BLND.L> rose 1.1 percent
after it posted 25 percent growth in third-quarter net asset
value. []
In the second tier <>, Premier Foods <PFD.L> climbed
8.9 percent as Britain's largest food producer posted a 0.6
percent rise in year trading profit. []
IT firm Micro Focus International <MCRO.L>, however, plunged
more than 30 percent after warning on its full-year outcome,
while Domino's Pizza UK & IRL Plc <DOM.L> shed 6.6 percent after
it reported a slowdown in sales growth.
Back among the blue chips, InterContinental Hotels <IHG.L>,
the world's biggest hotelier, met full-year expectations, but
fell 2.7 percent. Analysts said IHG's shares look fully-valued.
British satellites operator Inmarsat <ISA.L> shed 2.3
percent, with traders citing the impact of a downgrade in rating
by Morgan Stanley.
Engineers Weir Group <WEIR.L> and Smiths Group <SMIN.L> fell
2.9 and 0.8 percent respectively, after Citigroup downgraded its
rating on both firms on valuation concerns.
On the upside, International Power <IPR.L> gained 1.2
percent as HSBC Securities raised its rating for the power
generator to "overweight" from "neutral".
In the U.S., stock index futures pointed to a slightly
higher open for Wall Street on Tuesday, ahead of January U.S.
retail sale numbers due at 1330 GMT, and the February Empire
State Index due at the same time.
(Editing by Hans Peters)
