* FTSEurofirst 300 falls 0.8 percent
* Air France falls after profit warning
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Feb 10 (Reuters) - European shares fell on Thursday,
with Air France <AIRF.PA> lower after a profit warning, and
other stocks such as Diageo <DGE.L> down after earnings missed
forecasts.
At 1011 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.8 percent at 1,162.61 points, after
falling 0.4 percent in the previous session.
Air France-KLM fell 7.5 percent after saying on Wednesday it
would miss a key profit target after a triple whammy of snow,
strikes and security problems hit its finances. []
Credit Suisse <CSGN.VX> fell 3.6 percent after the
heavyweight bank missed profit expectations in the fourth
quarter because of debt charges and cut its return on equity
target due to tighter capital regulations. []
Danish lender Danske Bank <DANSKE.CO> fell 9.8 percent after
saying it would raise 20 billion crowns ($3.7 billion) in new
capital and posted fourth-quarter profits below market
consensus.
Among other banks to fall were Spain's Banco Santander
<SAN.MC> and BBVA <BBVA.MC>, down 3.7 and 3 percent
respectively.
"You're a brave man if you genuinely believe the banking
sector has turned the corner. There are still issues like the
sovereign debt crisis," said Jeremy Batstone-Carr, strategist at
Charles Stanley.
Diageo <DGE.L> fell 4.9 percent, after half-year results
from the world's biggest spirits group missed forecasts.
[]
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC40 <> fell between 0.5 and 0.9
percent.
DEUTSCHE BOERSE GAINS
On the upside, Deutsche Boerse <DB1Gn.DE> rose 2.4 percent
following Wednesday's news it was in advanced talks to buy peer
NYSE Euronext <NYX.N>. []
Telecom equipment maker Alcatel-Lucent <ALUA.PA> soared 11.3
percent after striking an upbeat tone for 2011, keeping an
ambitious free cash flow target and reassuring investors on its
profitability as it nears the end of its turnaround plan.
[]
At 1200 GMT, the Bank of England will announce its decision
on interest rates. With Britain's economy contracting at the end
of 2010, economists have stuck with the view that the BoE will
keep interest rates on hold until much later in the year.
A Reuters poll last week showed only 21 out of 67 analysts
thought rates would go up before the fourth quarter.
"What may be worrying the markets is that rates will have to
go up in Europe, as they have been doing in the developing
world," said Mike Lenhoff, strategist at Brewin Dolphin
Securities, in London. "There won't be a rise today, but it will
be interesting to see if there are more hawks."
Minutes of the BOE Monetary Policy Committee's meeting, to
be released later this month, will show how many of the nine
members voted for an increase in rates. Last month, two voted
for a rise.
Later, investors' attention will turn to U.S. economic data,
such as weekly jobless claims.
The European shares benchmark is still up nearly 80 percent
from a record low in March 2009, with several major economies
having emerged from recession, helped by stimulus from
governments and central banks worldwide.
"Most earnings themselves have been supportive, but if you
look at the guidance and the impact of inflationary pressure,
what is almost certain is that this will have an impact on
profit margins," said Batstone-Carr.
(Editing by Hans Peters)
