Kingfisher Share News (KGF)

* FTSE 100 down 0.7 percent * Earnings woes hit heavyweights Shell and AstraZeneca * Bank face huge claims from swaps scandal * BSkyB cheered by online sports offer By David Brett LONDON, Jan 31 (Reuters) - London's top shares closed loweron Thursday as downbeat company earnings and mixed globaleconomic data triggered the sharpest one-day fall on the FTSE100 since mid-November. Earnings were in focus after updates from British oilheavyweight Royal Dutch Shell and drugmakerAstraZeneca, and Facebook Inc in the UnitedStates, disappointed. Shell alone took 16 points off the blue chip FTSE 100 index after its fourth quarter profit came in nearly$400 million short of expectations. The FTSE closed down 46.23 points, or 0.7 percent at6,276.88, edging away from mid-May 2008 highs of 6,376. AstraZeneca shed 3.1 percent after warning of a tough yearahead, while in the United States No.1 social network Facebookfell 3.8 percent after its growth trailed the more aggressiveestimates. Temporary power provider Aggreko took its lossesover the last five trading days to more than 11 percent, withtraders citing recent press speculation about the potential foranother warning on earnings when it reports in March. British banks meanwhile face another round ofcompensation claims that could total billions of pounds afterthe regulator found they had widely mis-sold complexinterest-rate hedging products to small businesses. Royal Bank of Scotland shed 1.1 percent. Retailer Kingfisher fell 1.5 percent after Nomuracut its target price and earnings estimates by 6 percent on thefirm as it took a more pessimistic view of the UK market. Recent results have put a dampener on investor optimism,which helped push markets up towards four-and-a-half year highs. While 70 percent of European companies have so far beaten ormet earnings estimates in the current reporting season, topanalysts still expect fourth-quarter growth to fall 8.8 percentyear-on-year. After rallying 6 percent in January, Shore Capitalstrategist Gerard Lane said the FTSE looked "way too high giventhe near-term risks to earnings and the U.S. fiscal worries". "However, I still think the FTSE 100 will see 7,000 by theyear-end and if you are a smart investor you invest for the7,000 now rather than wait for a correction that might neverhappen," he added. EQUITY DEMAND British investment managers sharply increased their exposureto stocks in January as concerns of more financial instabilityreceded and the market's recovery gathered pace, a Reuters pollshowed on Thursday. But while broadly expecting the stock market recovery tocontinue, they cautioned that a risk of setbacks remains, withmany of the world's economic problems still not fully resolved. "Our view remains that however well the economic reboundproceeds, this recovery will still lack the strength seen inother rebounds," Percival Stanion, Chairman of the StrategicPolicy Group at Baring Asset Management, said in a note. "Deleveraging will continue; deficits will be reduced;households will tighten their belts. The journey will still belong, but one that is getting shorter with every step," he said. Investors greeted BSkyB's offer to show its popularsports channels online for a daily fee with enthusiasm, pushingthe shares up 1.0 percent. The company is seeking new customersto offset slowing growth at its core pay-TV service givensluggish consumer spending. Diageo was a top riser, up 1.3 percent after theworld's biggest spirits group ended talks to buy a stake intop-selling tequila brand Jose Cuervo. Mixed macroeconomic data did little to imbue investors withthe confidence needed to plough fresh money into markets alreadyat multi-year highs. Weak U.S. GDP data and downbeat comments from the FederalReserve overnight were followed by jobless claims on Thursday,which pointed to a slow healing of the U.S. labour market. Incomes in the world's biggest economy, however, rose inDecember by the most in eight years while U.S. Midwest businessactivity picked up to a nine-month high. "Investors now seem likely to sit on the sidelines hoping toglean clues from tomorrow's non-farm payroll data," aLondon-based trader said. U.S. employers are expected to have added 160,000 jobs totheir payrolls in January after an increase of 155,000 inDecember. The unemployment rate is seen holding steady at 7.8percent.. (Editing by Catherine Evans)