Friday morning business bulletin

Sep 26 2008 By Andrew Mernin

About 500 UK jobs are being axed at HSBC as part of a worldwide cull within its investment banking division, the group confirmed today.

The UK’s biggest bank is cutting about 1,100 posts across its global banking and markets division - 4% of the operation’s total workforce - as it comes under pressure amid the credit crisis.

UK staff affected are largely based in HSBC’s Canary Wharf office in London, where the division is headquartered.

Uncertainty over the fate of the American economic rescue plan caused European shares to open on the back foot today.

With talks in Washington ending last night without agreement, banking and insurance shares were heavy fallers on the London market.

The FTSE 100 Index made strong gains yesterday, but dipped by almost 100 points today before settling 74.9 points lower at 5122.2 by the end of the first hour of trading.

The fallers board featured Halifax Bank of Scotland, which slid 8p to 176p, while merger partner Lloyds TSB eased 11.25p to 262p and Royal Bank of Scotland dipped 7.25p to 213.25p. Bradford & Bingley fell another 13% in the FTSE 250 Index, off 2.5p to 18.75p.

Retailers were also under pressure after John Lewis reported a sharp fall in department store sales for last week and posted flat sales for Waitrose. Marks & Spencer, which is due to release a trading update next week, was down 3.25p at 224.75p.

Retail chain JJB Sports axed its dividend for shareholders today after slumping to a half-year loss.

The Wigan-based company reported a deficit before exceptional items of £9.7m for the 26 weeks to July 27, compared with profits of £8.3m a year earlier.

JJB remains "very cautious" about the trading outlook, but chief executive Chris Ronnie insisted that management would stay ``calm and focused" over the rest of this financial year.

The pound at 9am was US$1.8344 compared to US$1.8411 at the previous close while the euro at 9am was £0.7946  compared to £0.7952 at the previous close.