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* FTSE 100 down 0.3 pct
* Deutsche fine hits banks
* Brokers upgrade Morrison
By Alistair Smout
LONDON, Sept 16 Britain's top share index fell
on Friday, setting it up for a second straight week of losses,
as the heavyweight banking sector dropped after U.S. regulators
fined Deutsche Bank more than expected for misselling
Royal Bank of Scotland, Standard Chartered
and Barclays were down between 2.2 percent and 4
percent, making them the top three fallers on the FTSE 100.
Traders cited readacross from a slump in Deutsche Bank
, which fell nearly 8 percent.
"Investors in the sector have been spooked by this fine. It
remains to be seen exactly how much Deutsche Bank pays, but it's
a reminder of all the regulatory issues that the banks still
face," IG market analyst Chris Beauchamp said.
"There are concerns that there could be more fines further
along the road."
The FTSE 350 banks sector fell 1.1 percent,
taking weekly losses to 3.3 percent, its biggest weekly drop
The FTSE 100 was down 20.33 points, or 0.3 percent,
at 6,709.97, by 0809 GMT. It was down 1 percent for the week.
The top riser was Morrison, up 1.5 percent,
benefitting from target price upgrades from Barclays, Bernstein
and UBS after well-received results on Thursday.
"With sales, profits and cash better than we expected, it is
hard to be anything other than complimentary about Morrison's
(first half). However, we need to consider what happens next
rather than looking backwards," Barclays said in a note.
(Additional reporting by Adela Suliman; Editing by Louise