LONDON (ShareCast) - Blue chips are nursing large losses as banks tumble on slowdown fears, while insurers are weaker after Friends Provident announced break-up plans and posted a big slide in full year profit.

Friends Provident is the biggest faller after it put its F&C Asset Management, Lombard and Pantheon Financial businesses up for sale as part of strategic review that will also cut £40m of costs and about 600 jobs.

The firm reported a drop in 2007 underlying pre-tax profit to £300m on a European Embedded Value basis, from £509m in 2006, due to a persistency charge of £160m. But extra costs will slash this by a further £280m, leaving a profit of just £20m. Prudential and Old Mutual are down in sympathy.

F&C Asset Management said it has not received any takeover approaches from potential bidders yet. Assets under management at December were £103.6bn compared with £103.5bn at the end of September and £104.1bn a year ago.

Barclayshas lost more than 6%, closely followed by Royal Bank of Scotland, HBOS and Lloyds TSB on persistent worries about the financial sector.

Anglo American is among the biggest risers, while BHP Billiton and Rio Tinto are also up on talk that BHP Billiton could launch an increased offer for Rio.

Mobile phone giant Vodafone comfortably beat forecast of third quarter revenue growth, with total revenues up 15.8% to £9.2bn, and organic growth of 4.4%. But a failure to raise guidance had the shares lower.

Oil major Royal Dutch Shell said fourth quarter 2007 earnings, on a current cost of supplies (CCS) basis, jumped 11% to $6.7bn. On a full year basis, CCS earnings were $27.6bn, a new record for a European company, versus $25.4bn previously.

Power supplier National Grid said its financial performance from October to January was in line with its expectations. There will be a one-off increase of 15% in the dividend for the current financial year, with an increase of 8% a year targeted until March 2012.

Meanwhile, energy firm Scottish and Southern Energy said it aims to deliver at least 4% annual dividend growth in the next thee years

Oil and gas explorer Cairn Energy saw gross operation production for 2007 fall against last year, though average realised per barrel of oil equivalent rose.

Publishing and events firm Euromoney Institutional Investor said there has been some signs of slowing in advertising and sponsorship sales, exacerbated by the recent credit crisis.

Support services group Mouchel remains on track to deliver performance in line with expectations for the full year and said its longer term outlook remains favourable.

High street newsagent chain WH Smith has unveiled a £90m cash return to shareholders alongside a solid trading statement for the Christmas period.

Furniture retailer Land of Leather reported a 15.4% fall in like for like sales orders in the 23 days to 27 January.

• News Channel