European, U.S. Stock Futures Decline; BNP, Logitech May Drop

By Adam Haigh

Jan. 20 (Bloomberg) -- European and U.S. stock futures fell as concern deepened banks will need to raise further capital and earnings will deteriorate amid the global economic slump.

BNP Paribas SA might decline as Societe Generale SA recommended clients sell the shares, saying the lender may have to raise as much as 8 billion euros ($10.4 billion). Logitech International SA may slide after the world’s biggest maker of computer mice said third-quarter profit slumped 70 percent.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, slipped 5, or 0.2 percent, to 2,249 at 7:43 a.m. in London. Futures on the Standard & Poor’s 500 Index fell 1.3 percent, while the MSCI Asia Pacific Index sank 2.2 percent.

Stocks in Europe, Canada and Brazil dropped yesterday on speculation government efforts to shore up the financial industry will fail to stem the deepening global recession. The U.K.’s Royal Bank of Scotland Group Plc said it expects to post a loss of as much as 28 billion pounds ($41 billion) for 2008 and the government got ready to raise its stake in the lender.

BNP Paribas may fall. Analysts at Societe Generale cut their recommendation for France’s largest bank to “sell.”

Analysts forecast earnings at financial companies in the Stoxx 600 will rise 42 percent in 2009 following a 59 percent slide last year, according to Bloomberg data. The benchmark index posted its worst annual slump on record in 2008 as more than $1 trillion in credit losses and writedowns eroded profits.

Logitech may drop. Net income declined to $40.5 million, or 22 cents a share, in the quarter ended Dec. 31. Analysts had estimated earnings of 44 cents a share.

Burberry, IG Group

Burberry Group Plc, the maker of $1,295 checked Lowry handbags, may gain after saying third-quarter sales rose 9 percent to 329 million pounds, beating the 291 million pounds forecasts by analysts surveyed by Bloomberg.

IG Group Holdings Plc may climb after the owner of the IG Index financial-market betting brand said first-half sales gained 47 percent to 126.5 million pounds and trading in the second half remains “strong.”

Air France-KLM Group, Europe’s biggest airline, said it will have an operating loss in the third quarter on a “slight weakening” in passenger revenue.

Royal Dutch Shell Plc, the region’s largest oil company, and Total SA may move as crude fell below $35 a barrel in New York.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.