European shares drop as oil prices fall, BP reports loss
* FTSEurofirst 300 down 8.5 pct year to date
* BP slumps after worst loss in 20 years
* UBS down on surprise outflow of funds
* Danske Bank lifted by solid update (Updates prices)
By Atul Prakash and Danilo Masoni
LONDON, Feb 2 (Reuters) - European equities fell sharply on Tuesday as crude oil prices slipped again and companies like BP reported disappointing earnings.
BP fell 8.7 percent, its biggest daily decline since mid-June 2010, after reporting its worst annual loss in more than 20 years in 2015 and announced thousands of job cuts. It maintained its dividend, but the weak results and outlook are likely to put pressure on the company, which has had to increase borrowing.
"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."
The pan-European FTSEurofirst index dropped 2 percent, after closing 0.2 percent weaker on Monday. The index is down 8.5 percent so far this year. Continuación...