UK Indexes Fall; Anglo American Invests in Brazil Project

Arthi Gupta
29 Dec, 2010
New York City

The UK indexes fell and housing equity injections increased in the third quarter. Anglo American plc agreed to invest as much as $700 million in an iron ore project in Brazil. Smith & Nephew declined 2% after U.S. regulatory inquiry.

[R]3:40 PM London – The UK indexes fell and housing equity injections increased in the third quarter. Anglo American plc agreed to invest as much as $700 million in an iron ore project in Brazil. Smith & Nephew declined 2% after U.S. regulatory inquiry.[/R]

UK indexes lost early gains and declined as the market drew to close in the final minutes. The trading volume dipped more than 40% from the daily average as traders and investors stay away for Christmas holiday.

In London, FTSE 100 Index declined 22.42 or 0.36% to 5,986.53 and the pound edged higher to close at $1.5382.

Copper soared in London Metal Exchange as investors worry that supply may not keep up with the rising demand in China and the recovering economic prospects in the U.S.

Anglo American plc agreed to invest $1.3 billion reais or $770 million in an iron ore project in collaboration with LLX Logistica SA controlled by billionaire Eike Batista.

UK Housing Equity Injections Rise

Individuals injected £6.1 billion into housing equity in the third quarter, the Bank of England said. The negative data for the first quarter was revised to £5.8 billion from £6.2 billion.

Britain''s jobless total could rise 200,000 to 2.7 million or 9% of the working population, according to the annual barometer forecast from the Chartered Institute of Personnel and Development.

Of the job losses 120,000 are expected to be lost in the public sector and additional 80,000 jobs will be lost in the private sector, the CIPD estimates.

WPP Buys Stake in RMS

WPP Plc, the communications and marketing services provider said it agreed to acquire a majority stake in the Research and Marketing Services group of companies. WPP has made the acquisition through the TNS network, part of Kantar, WPP''s consumer insight arm.

According to WPP, the acquisition of a majority stake in RMS will form the TNS RMS network across West and Central Africa to expand the existing TNS Africa network.

SeaEnergy Venture Inks Deal

SeaEnergy said its joint venture company Moray Offhsore signed a lease agreement with the Crown Estate to develop three sites in the Moray Firth in Scotland.

The project is expected to have a combined capacity of between 1,000 mw and 1,140 mw and is expected to supply power to 750,000 homes.

Moray Offshore Renewables is a joint venture, owned 25% by SeaEnergy Renewables Limited and 75% by EDP Renewables.

Gainers & Losers

BG Group Plc fell 0.82% to 1,326.50 pence after the natural gas company announced that the initial Extended Well Test on the Guará discovery in the BM-S-9 concession offshore Brazil commenced on December 25.

Gas Turbine Efficiency plc soared 113.50% to 7.75 pence after the energy saving device maker decided to sell substantially all its technology and intellectual property for non-core aviation engine wash services business to Pratt & Whitney, a unit of United Technologies Corp. for a total consideration of $17.1 million.

HMV Group Plc rose 0.81% to 31.00 pence after the retailer of entertainment products announced the appointment of David Wolffe as Group Finance Director from January 10, 2011.

Ithaca Energy Inc. surged 9.80% to 168.00 pence after the oil and gas explorer and producer said that its UK subsidiary has more than doubled production from its second workover well on Beatrice Alpha.

Smith & Nephew plc declined 1.24% to 677.50 pence after the medical devices maker received a warning letter from the U.S. Food and Drug Administration about violation of rules related to manufacturing and testing.

St Peter Port Capital Limited advanced 0.39% to 63.75 pence after the investment company reported first-half NAV (Net Asset Value) was 92.9 pence per share, an increase of 2.3% since June 30. Loss in the period narrowed 49% to £3.534 million or 4.86 pence per share, compared to a loss of £6.884 million or 9.42 pence per share last year.