Global Stocks, U.S. Futures Drop; SocGen, Bear Stearns Decline

Stocks fell in Europe and Asia after Citigroup Inc.'s announcement of as much as $11 billion in additional writedowns suggested banks may face more losses. U.S. index futures retreated.

Societe Generale SA declined after Bear Stearns Cos. downgraded shares of the second-biggest French bank. J Sainsbury Plc tumbled as Delta (Two) Ltd. dropped plans for a 10.5 billion- pound ($21.9 billion) takeover, citing a worsening credit market. Mitsubishi UFJ Financial Group Inc. paced the retreat in Asia. Bear Stearns fell in Germany after Lehman Brothers Holdings Inc. cut its recommendation on the New York-based investment bank.

``It looks like there may be more bad news to come,'' said Simon Carter, who helps oversee $3 billion at Aegon Asset Management in Edinburgh. ``The Citigroup writedown due to subprime was much larger than expected. Sainsbury's woes are also not helping.''

The Morgan Stanley Capital International World Index sank 0.4 percent to 1,640.12, while Standard & Poor's 500 Index futures dropped 0.8 percent to 1,505.9 as of 10:10 a.m. in London. Shares in Hong Kong dropped the most since September 2001 after Chinese Premier Wen Jiabao signaled plans to allow citizens to invest in the market are on hold.

The MSCI World has lost 2.5 percent in three days, retreating from a record, on concern that more banks may follow Citigroup and Merrill Lynch & Co. and increase their estimates of losses related to subprime mortgages.
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