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HP knocks out Europe
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November 13, 2000: 12:22 p.m. ET
Lodon drops 2%; telecom, tech and media stocks lead declines
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LONDON (CNNfn) - Europe's major markets tumbled Monday, with technology, media and telecom stocks driving bourses down after U.S. computer and printer maker Hewlett-Packard reported earnings below Wall Street's expectations.
London's benchmark FTSE 100 index fell 125.4 points, or almost 2 percent, to 6,274.8, as battered fiber-optic component maker Bookham Technology (BHM) slumped 10.6 percent to continue last week's slump.
 The CAC 40 in Paris dropped 109.76 points, or 1.8 percent, to 6,037.73, amid declines for major media stocks.
Frankfurt's late-trading Xetra Dax slid 109.59 points, or 1.6 percent, to 6,742.10. Henkel (FHKL) fell 4.7 percent despite reporting pretax earnings rose 24 percent to  618 million ($533 million) in the first nine months of the year. The German household chemicals company also said it's considering the sale of all or part of its Cognis chemicals unit.
Among other leading European markets, the AEX index in Amsterdam slipped 1.5 percent and the MIB30 in Milan shed 1.1 percent, while the SMI in Zurich dropped 0.6 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, declined 1.5 percent, with the information technology sub-index shedding 5 percent and the computer services component dropping 5.7percent.
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
U.S. markets were sharply lower at midday Monday. The Nasdaq composite slipped 4.8 percent to 2,890.16 and the Dow Jones industrial average retreated 1.8 percent.
In the currency market, the euro rose slightly to 86.10 U.S. cents from 85.98 in New York trading late Friday.
Techs teeter yet again
Technology stocks took the brunt of investors' dissatisfaction. Hewlett-Packard (HWP: Research, Estimates) was the latest to report fourth-quarter earnings well below Wall Street expectations. The Palo Alto, Calif.-based company also said it ended talks with PricewaterhouseCoopers about buying the accounting firm's consulting business.
 German chip maker Infineon Technologies (FIFX) fell 3.7 percent, Franco-Italian rival STMicroelectronics (PSTM) dropped 2.2 percent and U.K. chip designer ARM Holdings (ARM) slid 3.8 percent.
In the Internet and software area, security systems firm Baltimore Technologies (BLT) fell 8.6 percent, information technology consultant Sema Group (SEM) dropped 8.8 percent and business software developer Sage Group (SGE) fell 5.4 percent.
In France, broadcaster TF1 (PTFI) fell 4.5 percent, rival Canal Plus (PAN) dropped 3 percent, parent Vivendi (PEX) slipped 2.4 percent, and media and missiles group Lagardère (PMMB) fell 5.2 percent. Dutch network operator Equant (PEQU) fell 5.5 percent.
SAP [FSE:FSAP3] Europe's largest software company, declined 5.6 percent in Frankfurt and Europe's biggest telecommunications operator Deutsche Telekom (FDTE) shed 2.6 percent. France Telecom (PFTE) dropped almost 3 percent in Paris, and the world's biggest mobile-phone operator, Vodafone Group (VOD), slipped 2.8 percent.
Nokia, the world's biggest maker of mobile-phone handsets, slid almost 6 percent in Helsinki and Swedish rival Ericsson dipped 2.1 percent. Network equipment maker Alcatel (PCGE) plunged 5.5 percent in Paris. British rival Marconi (MNI) slid 8.3 percent.
Dutch-based Internet service provider World Online plunged 8.2 percent. The company said its headquarters had been raided in connection with allegations of insider trading around the company's disastrous initial public offering in March. Italian ISP and telecommuncations company Tiscali, which is merging with World Online, slipped 0.6 percent.
 AstraZeneca (AZN) rose 2.1 percent. The British drug maker, along with Switzerland's Novartis, is part owner of the agrochemicals and seeds firm Syngenta, which closed at 79.80 Swiss francs in Zurich. That was a decline from the company's initial public offering price of 85 francs, which had been set at the bottom of the previously indicated range. Novartis was up 0.7 percent in Zurich.
In Milan, Italian investment bank Mediobanca fell 5.7 percent after announcing a new pact with French investment bank Lazard, a longtime partner, that will give Mediobanca a chance to tighten its control of Generali, Italy's biggest insurer. Mediobanca said it had negotiated an option to buy 75.9 percent of Euralux, an investment vehicle controlled indirectly by Lazard, by June 30. Generali shares fell 4.4 percent.
Railtrack (RTK), the operator of Britain's railroad track and stations, fell 1 percent. The company reported a 31 percent drop in first-half pretax income and said it will take a special charge of £250 million in the second half, in part to pay penalties related to a train wreck last month that killed four people.
-- from staff and wire reports 
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