Banking sector on focus in British market

LONDON: BRITAIN's banking sector moves into focus this week, with half-year results from Barclays, HSBC and Standard Chartered, as well as bailed-out lenders Lloyds and Royal Bank of Scotland.

London's FTSE 100 Index shed 2.02% over the past week to finish at 5,815.19 points last Friday, as investors ran for cover amid debt strains in the United States.

HSBC fires the opening salvo on Monday, releasing results for the first half of 2011. Barclays delivers its numbers on Tuesday, followed by emerging markets lender Standard Chartered a day later. All three groups survived the global financial crisis without direct state aid or falling into government control.

Results from state-rescued Lloyds Banking Group and Royal Bank of Scotland are due on Thursday and Friday respectively.

Other companies reporting results next week include insurer Aviva and miner Rio Tinto.

Investors will also focus on the latest interest rate decision from the Bank of England on Thursday, when it is widely expected to maintain its key interest rate at the record-low 0.50%.

Official data this week showed that Britain's economy, already struggling to absorb deep budget cuts, slowed to a trickle in the second quarter, when output was also hit by the royal wedding and Japanese earthquake.

The economy narrowly turned in growth, with expansion of just 0.2% between April and June. AFP