UK Confidence Improves; Reckitt Benckiser Plunges 7%

Arthi Gupta
14 Apr, 2011
New York City

The UK indexes slid on concerns of inflation. UK consumer confidence improved in March. The Irish economy is forecasted to grow in 2011. WH Smith surged after first-half pre-tax profit rose 3.2%.

[R]3:45 PM London – The UK indexes slid on concerns of inflation. UK consumer confidence improved in March. The Irish economy is forecasted to grow in 2011. WH Smith surged after first-half pre-tax profit rose 3.2%.[/R]

UK stocks slid tracking the weakness in commodities prices and worries of economic growth. UK consumer confidence improved in March and Irish economy is expected to grow after three years of decline.

Leaders of the BRIC nations said in a joint statement that the derivative market regulation for commodities should be strengthened so that it will avoid market destabilization.

Chinese banks may have to raise nearly 860 billion yuan or $131 billion of capital over six years to meet stricter requirements, Bloomberg News reported on Thursday citing an unidentified person with knowledge of estimates from the country''s industry regulator.

Chinese lenders may also require an extra 1.26 trillion yuan in supplementary capital by the end of 2016, the source said. The estimates were compiled in January, assuming 8% economic growth per year and 15% credit expansion.

In London, FTSE 100 Index declined 60.02 or 1% to 5,950.42 and the pound edged higher to close at $1.6332.

The UK banks should be able to generate liquidity using their mortgage assets on the winding up of the central bank''s Special Liquidity Scheme, Bank of England policy maker Paul Fisher said today.

UK Consumer Confidence Improves

UK consumer confidence improved in March from a record low in February, according to a survey by the Nationwide building society.

The building society’s consumer confidence index for March rose five points to 44.

Irish Economy Forecasted to Grow

The Irish economy is projected to return to growth in 2011 after shrinking over the past three years, the central bank said in its Quarterly Bulletin on Thursday.

Real gross domestic product is expected to grow 0.9% this year and 2.2% in 2012 with exports remaining the main driver of growth.

BP and Rosneft Extend Share-swap Deadline

BP plc agreed with Russian oil company OAO Rosneft to extend the deadline for the share swap agreement in connection with oil exploration and development in Russian Arctic continental shelf. The previous deadline of today is extended to May 16.

Gainers & Losers

Debenhams Plc fell 0.75% to 66.30 pence after the department store group reported first-half revenues grew 2.9% to £1.22 billion from last year''s £1.19 billion. Comparable sales, including VAT, were flat and declined 1.5% excluding taxes.

Kier Group plc dropped 0.30% to 1,333 pence after the engineering and construction firm agreed to acquire the 50% stake in Kier Developments Ltd. owned by Lloyds Banking Group plc for a total cash consideration of £91 million.

With the current interest acquisition, Kier Group is the sole owner of Kier Developments.

Rank Group Plc fell 0.68% to 145.40 pence after the bingo hall and casino operator announced revenue increased 2% for the first 15 weeks of the financial year.

Mecca Bingo revenue improved 4% in the 15-week period as a result of growth in spending per visit. Customer visits were in line with the same period in 2010 while spending per visit increased 4%.

Reckitt Benckiser Group Plc plunged 7.07% to 3,128 pence after the consumer goods company announced the retirement of its chief executive officer Bart Becht and named Rakesh Kapoor as the successor effective September 1, consistent with its succession plan.

WH Smith plc surged 4.99% to 473.20 pence after the books and magazines retailer said first-half sales fell 4.2% to £686 million from £716 million. On a comparable, the decline was 5%, with a 3% drop in book sales and a 4% decrease in news and impulse sales.

Profit before tax for the first-half rose 3.2% to £64 million from £62 million, largely impacted by a £7 million cost savings in the High Street segment.