* FTSE down 0.2 percent
* Banks knocked on ring fencing worries, europe debt woe
* UK jobs data mixed
By David Brett
LONDON, June 15 (Reuters) - Banks led a minor retreat on Britain's FTSE 100 on Wednesday, hurt by uncertainty over the UK government's push for tighter regulation and Europe's debt crises.
Banks <.FTNMX8350> fell ahead of a speech by British finance minister George Osborne later on Wednesday, when he is expected to argue for a ring fencing of banks' retail business from so-called casino banking activities in the biggest shake-up of the UK banking system since the 1930s. [ID:nWLA2536]
Barclays
Bruce Packard, analyst at Seymour Pierce, said: "The implications for shareholders remain unclear ... (But) if the idea works, it would make the whole sector more resilient in a crisis, and a more investable proposition for equity investors."
The failure of euro zone ministers to reach an agreement over Greek debt also weighed on the sector. [ID:nLDE75D0G6] [ID:nL3E7HF0A4]
Peter Clark, chief strategist at Ingenious Asset Management, which has around 1 billion pounds of funds under management, said he would advise against allocating funds into domestic banks.
"With the levels of debt in the economy and everybody desperately trying to repay debt and restore their balance sheets, it is not a great environment for a bank."
He said the global debt situation left him cautious on the
market, "favouring value over growth for the developed markets
especially cheap multinational blue chips" such as AstrZeneca
RECOVERY JITTERS
Britain's FTSE 100 <.FTSE> was down 9.27 points, or 0.2 percent at 5,793.86 by 1041 GMT, having closed 0.5 percent higher on Tuesday.
Mixed jobs data reinforced the uncertain outlook for Britain's shaky economic recovery. [ID:nLDE75E0SN]
"If the economy doesn't expand in the way that the government is hoping it will, you have to start to get a little bit concerned that provisions for bad debt will begin to pick up again," Ingenious's Clark said.
U.S. stock index futures pointed to a weaker open on Wall Street on Wednesday ahead of inflation and manufacturing data with investors looking for further clues as to the health of the World's biggest economy.
Back on London's blue chip index, credit checking agency
Experian
Glencore
Integrated oils <.FTNMX0530> dragged in tandem with crude
The fall in the price of oil spurred interest in travel
companies, with International Consolidated Airlines
Elsewhere, British Land
British technology firm Smiths Group
Only one blue-chip stock, 3i Group