Financial News

LONDON (ShareCast) - Banks are still among the worst performers in Europe in midday trade, while falling crude prices are weighing on energy stocks.

French banking giant Societe Generale (Paris: FR0000130809 - news) said it expects its second-quarter net income to be 'slightly positive.'

The Paris-based group, which lost €278m in the first quarter, said solid operational performances in corporate and investment banking will absorb the 'significant' negative impact of the substantial tightening of credit spreads stemming from an improving market environment and reduced aversion to risk in mid-March.

SocGen said revenue will be hit by €1.3bn loss from CDS used to hedge its loan portfolio and from debt instruments issued by the group and booked at fair value.

The group was leading the fallers in Paris early on and is still among the worst performers on the CAC. Shares in the bank are currently down more than 3%.

Swiss bank UBS (Virt-X: UBSN.VX - news) is reportedly planning a management shake up at its US brokerage after deciding not to sell the business.

The Financial Times is quoting people familiar with the matter as saying that UBS's chief executive Oswald Grübel has decided to keep the business for the time being.

Grübel, former chief executive of Credit Suisse, is now looking for a new leader for the unit, according to the paper, though it is not clear whether he wants to replace Marten Hoekstra, the current head of UBS's wealth management operations in the Americas.

Elsewhere in the sector, Credit Agricole (Paris: FR0000045072 - news) , Commerzbank (Xetra: 803200 - news) and BNP Paribas (Paris: FR0000131104 - news) are also among the main fallers.

Energy shares, including Total and Eni (Milan: ENI.MI - news) , are lower after crude oil prices dropped below $64 a barrel.

Across the markets, the German DAX is down 85 points at 4,622 with the French CAC falling 47 points to 3,071. The Swiss market has dropped 30 points to 5,307.

Porsche (Xetra: POR3.DE - news) fell after UBS cut its stance on the German sports car maker to "sell" from "neutral."

CAC 40 (Paris: news) - Risers Air France (Paris: FR0000031122 - news) -KLM (AF (Stockholm: 45674.ST - news) ) € 8.84 +2.23% EADS (Paris: NL0000235190 - news) (EAD) € 11.78 +2.17% Pernod Ricard (Paris: FR0000120693 - news) (RI) € 45.20 +0.69% Essilor International (EI) € 35.04 +0.39% Sanofi (Paris: FR0000120578 - news) -Aventis (SAN) € 42.98 +0.39%

CAC 40 - Fallers ArcelorMittal SA (MT) € 21.53 -4.59% Dexia (DEXB) € 5.21 -4.05% Peugeot (Paris: FR0000121501 - news) (UG) € 17.19 -3.59% Lafarge (Paris: FR0000120537 - news) (LG (003550.KS - news) ) € 42.70 -3.42% Schneider Electric (Paris: FR0000121972 - news) (SU) € 52.04 -3.27% Societe Generale (GLE) € 36.71 -3.17% Credit Agricole (ACA) € 8.83 -3.01% Saint Gobain (Paris: FR0000125007 - news) (SGO) € 22.85 -2.97% Alcatel (Paris: FR0000130007 - news) -Lucent (ALU) € 1.62 -2.77% Vallourec (VK) € 82.61 -2.69%