FTSE 100 edges lower amid earnings and macro worries

* FTSE down 0.2 percent

* Lonmin falls after earnings, Xstrata rejection

* Tullet Prebon warns on revenues

* IAG rises amid job cuts to protect profit

LONDON, Nov 9 (Reuters) - Britain's FTSE 100 fell early on

Friday as worries over earnings and macroeconomic conditions hit

sentiment, with miner Lonmin and broker Tullet Prebon hit after

poor earnings updates.

By 0907 GMT, London's blue chip index was down 8.44

points, or 0.2 percent, at 5,767.61 having fallen 1.9 percent

over the last two trading sessions on weak earnings and global

economic concerns.

That and the approaching "fiscal cliff" in the United

States continues to pull down cyclical stocks such as energy,

banks and mining which are sensitive to waning risk sentiment,

"Technicals are looking tired, earnings-based valuations are

pushing the upper barriers of their recent ranges and there are

some decent profits to bank (post-summer gains)," Peel Hunt

strategist Ian Williams said. "A spell of retesting support

levels may help to build a base for the next upward leg."

The FTSE 100 is approaching its 5,750 support level, which

is the low since central banks announced stimulus packages to

support the economy in early September. The next strong support

level after that could be the August low of 5,640.

Miners were the top fallers, down 1.0 percent,

led by Lonmin, which slipped 2.1 percent after the world

No. 3 platinum producer rejected a takeover proposal from its

largest shareholder Xstrata. The firm also unveiled a

full-year loss before tax of $698 million.

The Lonmin news, weak sector earnings and broader economic

worries overshadowed better consumer data and falling inflation

in China

"At any other time the china data would help the miners but

the appetite for opening fresh positions in the cyclicals just

is not there at the moment. The risk/reward skew is not

attractive," a London-based trader said.

Miners' earnings continue to lag the wider market, with 50

percent of companies that have reported so far in the quarter

missing watered-down expectations, compared with 42 percent for

all European companies. Earnings among the miners have

contracted 64 percent in the quarter year-on-year, with revenues

down 10.8 percent in the same period, according to Thomson

Reuters Starmine data.

CLAIMS KNOCK BP

Energy stocks fell too, with heavyweight BP

, down 1 percent as sentiment continues to be dogged by

claims relating to damages from the 2010 Gulf of Mexico oil

spill, which clouds the company's earnings outlook.

Broker Tullett Prebon fell 6 percent after it

warned its revenue for the four months to the end of October

fell 12 percent, to 276 million pounds ($440.8 million), owing

to "challenging" market conditions.

On the upside, International Airlines added 1.3

percent as investors responded positively to the company's plans

to axe jobs at Spanish flag carrier Iberia to restore

profitability as the group heads for a full-year operating loss.

Engine maker Rolls Royce crept 0.7 percent higher

after saying it expects to deliver good growth in full-year

profit, despite lowering revenue guidance for its marine

division.

The biggest individual risers were aided by recommendations

from brokers who urged their investors to look for yield or

value in the current depressed economic environment.

Car insurer Admiral rose 4 percent after BofA

Merrill Lynch double upgraded the company to "buy" from

"underperform" saying its key valuation metric is now its 9.1

percent dividend yield.

Chemicals firm Croda International climbed 1.5

percent after Barclays raised its rating on the company to

"equal weight" from "underweight".

"Croda's high valuation at a time when the environment has

changed for consumer chemicals made it vulnerable to the share

price correction we had feared. We see its valuation as being

more reasonable at current levels," Barclays said in a note.

(Editing by Catherine Evans)

Source: http://news.yahoo.com/ftse-100-edges-lower-amid-earnings-macro-worries-094024618--business.html

ron white buckyballs buckyballs awake mario batali lone ranger aaron brooks