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Swiss-based UBS back in the bad books on Tuesday as sub prime problems continue to ripple through its operations. The bank said it was axing 5,500 jobs and selling billions of dollars of assets to US firm Blackrock to break free of its sub prime problems. But the market wasn't so convinced - sending its shares more than 5 percent lower on worries that its earnings power would still be sharply curtailed. That soured trade in European shares which were mostly weaker despite earlier gains in mining and oil shares. Energy stocks gained after the price of oil hit a new record above 121 dollars a barrel - partly due to increased tensions with Iran and further supply disruptions in Nigeria. In corporate results, Adidas said profits climbed nearly a third in the first quarter despite another weak performance by its Reebok brand in the United States. The world number two sports goods maker said cost cutting had helped lift profits and it was also seeing good demand ahead of the Beijing Olympics and the Euro 2008 soccer championship. On to Microsoft and Yahoo - after negotiations broke down at the weekend between the two global giants - Yahoo says it's still open to more talks if Microsoft came back with a new takeover offer. But Microsoft International President Jean-Philippe Courtois told Reuters that's not going to happen. Soundbite (English) Jean-Philippe Courtois, President, Microsoft International "Absolutely that's the end of the story we're moving on - because our strategy is very clear. It's about innovation, an innovation surge in life services. It's also about an online advertising platform which we've been acquiring and developing and extending and it's about a lot of partnerships we have also developed with many other companies in the world." Finally, Egyptians began to feel the sting of steep rises in fuel and cigarette prices that took effect Monday night. The government hiked prices to help pay for recent wage increases and offset higher global energy costs. But the increases are expected to spark further discontent in Egypt which is already reeling from rising food prices, bread shortages and disputes over low wages. Basmah Fahim, Reuters COMPANIES MENTIONED: SYMBOLS: