LONDON (ShareCast) - Expectations of a poor economic environment in core markets prompted JP Morgan to lower its rating on electrical retailer DSG International to ‘underweight’ from ‘neutral’.

Conditions are deteriorating particularly badly in the UK, JPM said.

DSG operates Currys and PC World in the UK and also has chains in France, Spain, Italy and other European countries.

It will continue feeling the pinch of the weak housing market, with recent promotions to sell TVs also taking a toll, JPM said.

Friends Provident led the FTSE 100 lower Wednesday morning after Merrill Lynch downgraded the insurer to ‘underperform’ from ‘neutral’ to reflect its stalling disposal programme.

Given falling UK sales and new business value, high payback periods and weak cashflow, it will take a while for restructuring to start showing benefits, Merrill said.

The broker has a 99p target price on the insurer.

Citigroup has raised its target price on Schroders to 875p from 770p following the fund manager’s first half results last week.

The higher target price reflects lower losses and 3% share buy-backs over the reporting period, Citi said.

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