HSBC cut to neutral at UBS

LONDON (MarketWatch) -- UBS downgraded banking giant HSBC (UK:HSBA) (NYSE:HBC) to neutral from buy, citing valuation as well as a likely slowdown in European growth in 2008 and a tough environment for its U.S. lending arm, Household. "The third-quarter of 2007 is set to look bad for Household, and we do not expect the group to make any effort at providing reassurance as to the near-term outlook," UBS said. It noted, on the other hand, that HSBC's Asian business is delivering its best growth in a decade.