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A&L writedown hits profits, funding costs jump * BNP paribas Q4 profits down, confident on 2008 * Oil falls from record above $100 per barrel SCRIPT: British bank Alliance & Leicester suffered a double blow from global financial market turmoil, warning a big rise in funding costs would dent 2008 profit after a writedown on risky assets hit 2007. A&L, Britain's seventh-biggest listed bank, surprised investors by estimating funding costs will be about $292 million higher this year than under normal circumstances as it takes precautions to avoid the crisis that hit rival Northern Rock last year. The news, alongside a 30 percent drop in 2007 profits, a gloomy outlook into 2009 and a lower-than-expected dividend, sent the bank's shares down over 18 percent to a record low. /// BNP Paribas gave a confident 2008 outlook despite posting lower profits and France's biggest listed bank said it was too early to clarify its plans regarding weakened rival Societe Generale. One of the first European banks to sound alarms over the risk posed by exposure to U.S. subprime mortgage loans last August, BNP has since weathered the crisis better than many European peers. Its fourth quarter net profit fell 42 percent to $1.5 billion. /// European shares fell in early afternoon trade after data showed U.S. consumer inflation picked up more than expected in January, tempering expectations for more aggressive cuts in interest rates. The FTSEurofirst 300 was down over one percent. Banks were the worst performing sector after another flurry of results from European institutions including Alliance & Leicester and BNP which reported writedowns. /// Oil retreated a day after hitting a record high above $100 a barrel, as investors focused on a U.S. report expected to show crude stockpiles rose for a sixth week. U.S. crude stocks were expected to rise by 2.3 million barrels. Concern that the Organization of the Petroleum Exporting Countries will hold or even cut output when it meets on March 5, as well as uncertainty about Venezuelan and Nigerian supplies, sent prices back to triple digits. /// The first 'bullet' train from Madrid to Barcelona finally arrived 16 years after Spain's second city was snubbed as the destination for the country's first high-speed link. The brand new train, built by Germany's Siemens completes the trip in two hours and forty minutes at two hundred and fifty kilometres per hour. And passengers were excited about avoiding the airport security checks. (SOUNDBITE) KARL, BUSINESSMAN FROM SWEDEN, SAYING (English): "Taking the plane you have to undress a couple of times before getting on and it is rather unpleasant, and we thought 'let's try this one', and it's started today, so it is very good. So I am going back today (to Madrid.)" The 0.3 billion U.S. dollar project which took 12 years to complete is part of an ambitious project by the Socialist government to have more high-speed railway routes than France, Japan or any other country in the world by 2010. Stefanie McIntyre, Reuters