European shares led lower by BP and UBS
* FTSEurofirst 300 index falls 1.7 percent
* BP slumps after worst loss in 20 years
* UBS down on surprise outflow of funds (Updates prices)
By Atul Prakash
LONDON, Feb 2 (Reuters) - European equities fell sharply on Tuesday as crude oil prices slipped again on oversupply concerns and companies such as oil major BP disappointed on the earnings front.
Swiss bank UBS also slumped, down 7.8 percent, after reporting a surprise outflow of funds from its flagship wealth management business, overshadowing its best annual results since 2010 and a higher than expected dividend payout.
BP fell 7.9 percent after reporting its worst annual loss in more than 20 years in 2015. It announced thousands more job cuts following a deep rout in oil prices and maintained its dividend, but the weak results and outlook are bound to pile pressure on the company, which has had to increase borrowing.
"BP hasn't blinked on its dividend, but it is playing chicken with the oil price. BP's dividend is a mile away from being covered by earnings and the market is saying that this is unsustainable," said Steve Clayton, head of equities research at Hargreaves Lansdown.
"They are a chasm away from their cash break-even oil price of around $60 dollars per barrel," he said. Continuación...