Barclays Should Abandon ABN Amro Bid, Sanford C. Bernstein Analyst Says

(Bloomberg) -- Barclays Plc should walk away from its
proposed acquisition of ABN Amro Holding NV because it won't be
able to beat a rival bid led by Royal Bank of Scotland Group Plc,
analysts at Sanford C. Bernstein Ltd. said.

``Barclays is going to have to walk away at some point, and
we think they can achieve that in the least damaging way by making
the move now,'' analysts including Antony Broadbent said in an e-
mail to investors today. ``We do not think that Barclays has
widespread shareholder support to enrich its offer.''


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European Government Bonds Decline as Report Shows Signs of Life in Economy

(Bloomberg) -- European 10-year government bonds
fell, reversing earlier gains, as a report today showed the
economy grew at an unexpectedly rapid pace in June.

Yields on longer-date debt rebounded to near a five-year
high after Royal Bank of Scotland Group Plc's combined index of
services and manufacturing showed the highest reading since
February, contrary to the decline predicted in a Bloomberg News
survey. A separate report tomorrow will probably show German
business optimism is buoyant, stoking expectations the European
Central Bank will keep raising interest rates.


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European Stocks Decline, Paced by HBOS, Veolia, Royal Bank of Scotland

(Bloomberg) -- European stocks declined, led by HBOS
Plc, Royal Bank of Scotland Group Plc and Veolia Environnement SA.

The Dow Jones Stoxx 600 Index fell 0.2 percent to 388.28 at
11:45 a.m. in London. The Stoxx 50 also lost 0.2 percent and the
Euro Stoxx 50, a measure for the 13 nations sharing the euro,
dropped 0.4 percent.


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