U.K.’s FTSE 100 Retreats for Fifth Day; BHP, Rio Tinto Slide

By Adria Cimino

Jan. 26 (Bloomberg) -- U.K. stocks declined for a fifth day, the longest losing streak in 11 months, as Britain’s gross domestic product rose less than forecast and concern mounted that China’s efforts to cool growth may hurt the global economy.

BHP Billiton Ltd., the world’s biggest mining company, and Rio Tinto Plc, the third-largest, dropped at least 1.6 percent as metals retreated.

The benchmark FTSE 100 Index tumbled 33.5, or 0.6 percent, to 5,226.81 at 10:12 a.m. in London. The FTSE All-Share Index also fell 0.6 percent. Ireland’s ISEQ Index added 0.1 percent.

The FTSE 100 is declining for a fifth consecutive day, the longest losing streak since February, as U.S. President Barack Obama called for a limit on risk-taking by banks and speculation grew that China may raise interest rates after the world’s third-biggest economy expanded at the fastest pace since 2007 in the fourth quarter.

Bank of China Ltd. has stopped extending new corporate loans in the Shanghai area and China Construction Bank Corp.’s branch in the city has been told to screen applications for personal loans and mortgages more carefully and to stop new lending once a monthly quota is met, according to people familiar with the situation. Liu Mingkang, chairman of the China Banking Regulatory Commission, last week said some banks were asked to rein in lending because they failed to meet regulatory requirements.

U.K. Economy

The U.K. economy grew 0.1 percent in the fourth quarter from the previous period, the Office for National Statistics said today. The median forecast in a Bloomberg News survey of 33 economists was for a 0.4 percent increase and the lowest prediction was for a result of 0.2 percent.

BHP Billiton fell 1.7 percent to 1,881.5 pence and Rio Tinto lost 1.6 percent to 3,169 pence. Antofagasta Plc, owner of copper mines in Chile, slumped 2.1 percent to 914 pence and Xstrata Plc sank 2.4 percent to 1,076 pence.

Copper dropped for the first time in three days in London trading on speculation that China’s moves to curb lending may hurt demand in the world’s largest consumer of the metal.

Intermediate Capital Group Plc advanced 3.1 percent to 275.8 pence, gaining for a second day. The London-based provider of loans for private equity firms said it expects to reap bigger profits from asset sales after stock and bond markets rebounded.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.