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Preview from Europe: Risk Aversion Returns to Haunt Stocks

I guess Barclays just give an uppercut and K.O to shorts for next Tuesday LOL

Barclays to unveil £6bn profit after shares slump
Barclays is preparing to unveil annual pre-tax profits of around £6bn when it updates the market next month, The Sunday Telegraph has learnt

By Mark Kleinman and Graham Ruddick
Last Updated: 8:55PM GMT 17 Jan 2009

The bank's share price plunged 25pc in the last hour of trading on Friday leading to Barclays releasing an unusual statement, aimed at reassuring investors, which said it expected 2008 profits to be "well ahead" of the £5.3bn consensus estimate of City analysts.

"The board expects to report profit before tax for the year well ahead of the £5.3bn consensus estimate of sell-side analysts," said the statement.

The sharp fall in Barclays' share price had led to fears about the extent of bad debts on its balance sheet and that it would be forced to participate in the latest phase of the Government's efforts to rehabilitate the banking sector. Analysts also suggested the bank could have been targeted by short-sellers, after the ban on short-selling was lifted on Thursday night.

Barclays insisted it knew "no justification for the fall in share price" after its shares fell to 98p, down 45pc in the week and their lowest since 1993.

The bank snubbed the first bail-out package by the Government in October, which saw the state inject £37bn into HBOS, Royal Bank of Scotland and Lloyds TSB in return for significant stakes.

Barclays instead secured £7bn of investment from Middle East investors as it sought to maintain control over its international strategy, dividends and remuneration.