** Home improvement retailer Kingfisher top UKblue-chip faller in heavy volume & retreats from 7-mth highs hitrecently as Barclays cuts to "underweight" vs "equal-weight"
** Barclays says QE will have a limited effect on anyimminent recovery in France, increased competition & overspacing are structural challenges for KGF in the UK, & Polishdiscretionary spending to suffer after zloty depreciation
** Co back in Nov had cautioned investors against expectinga quick recovery in France - the market that contributes morethan half its profits
** Stock falls almost 2 pct, taking its drop since an Aprilpeak to 22 pct
** In its 2014 budget, the French government hit consumerswith higher income & sales taxes to try and bring down thedeficit (RM: tricia.wright1.thomsonreuters.com@reuters.net)