BUZZ-Capital & Counties: falls after slashing value of Earls Court site

** London property developer Capital & Counties falls 3.8 pct after cutting the value of its Earls Court development by 11.8 pct

** CapCo, that eventually expects to sell up to 10,000 units on the site, has been hit by Brexit and oversupply in high-end London property

** CEO Ian Hawksworth said on Wednesday "political and macroeconomic conditions have impacted the residential market resulting in a further valuation decline"

** Sales growth on the site continues to be sluggish: CapCo said it sold just seven units in its Lillie Square phase 2 development in the second half of 2017

** Broker Liberum ("hold") says political risk around the Earls Court site likely to continue; CapCo could divest parts of the site to claw back value

** Peel Hunt says a potential sale of the Empress State building, one of the most marketable elements of the Earls Court development, "indicates that CapCo anticipates a potential oversupply of high-end apartments at Earls Court, even with further phases to complete"

** Stock has been seen as one of the best ways to short the London property market

** Among top fallers on Stoxx 600