UK Home Prices Rise; Rolls-Royce Wins $2.2 B Order from TAM

Arthi Gupta
20 Jun, 2011
New York City

The UK indexes fell. The UK gross mortgage lending rose in May and home prices gained in June. Rolls-Royce secured $2.2 billion contract from Brazil-based TAM Airlines. Rexam agreed to sell Closures to U.S.-based Berry Plastics for $360 million.

[R]3:00 PM London – The UK indexes fell. The UK gross mortgage lending rose in May and home prices gained in June. Rolls-Royce secured $2.2 billion contract from Brazil-based TAM Airlines. Rexam agreed to sell Closures to U.S.-based Berry Plastics for $360 million.[/R]

In London, FTSE 100 Index declined 38.14 or 0.7% to 5,677.02 and the pound edged higher to $1.6186.

UK Gross Mortgage Lending Rises

Gross mortgage lending in the UK increased 12% in May from the previous month to £11.3 billion, data published by the Council of Mortgage Lenders showed today. It was 1% higher than in May 2010.

UK Household Finance Deteriorates

UK household finances deteriorated in June, declining to their worst state since March 2009, according to Markit.

The Markit Household Finance Index fell to 35.1 in June from 36.0 in May, its worst level for over two years. The June survey found 36% of households reported their finances deteriorated since the previous month while just 6% reported an improvement.

UK Manufacturing Pay Deals Climb

Manufacturing pay deals in the UK continued to show a gradual increase, according to the latest report from the manufacturers'' organization EEF and JAM Recruitment.

Average pay settlement for the three months ended May increased to 2.6% from 2.5% in three months ended April.

UK Home Prices Rise

Average asking prices for a property in the UK rose to the highest value ever recorded for the month of June, while advancing for a sixth consecutive month, property Web site Rightmove said.

New sellers'' average asking prices rose 0.6% on a monthly basis to £240,394 in June, following a 1.3% monthly gain in prices in May.

Rolls-Royce Wins Contract from TAM Airlines

Rolls-Royce Holdings Plc concluded a contract valued up to $2.2 billion at engine list prices, with TAM Airlines of Brazil, to provide Trent XWB engines for Airbus A350 XWB aircraft. The order includes a 12 year agreement for TotalCare long-term services support.

TAM placed an order for 27 A350 XWBs.

Rexam Sells Closures

Rexam Plc, the consumer packaging company agreed to sell its beverage and specialty closures business to U.S.-based plastic packaging manufacturer Berry Plastics Corp. for $360 million in cash.

Gainers & Losers

Aggreko Plc fell 2.67% to 1,860.00 pence after the supplier of temporary power and temperature control said for the first-half, on an underlying basis or in constant currency and excluding revenues from pass-through fuel and major events held in 2010, the growth is projected to be 20% in revenues and 17% in trading profit.

Bodycote Plc plunged 5.6% to 332.50 pence after the company engaged in the provision of thermal processing services said it inked a ten-year renewal contract with Rolls-Royce Group Plc to provide thermal processing services in UK.

Circle Oil Plc slumped 4.38% to 32.99 pence after the oil and gas explorer reported fiscal year 2010 revenue surged 194% to $44.39 million from $15.09 million in the prior year. The quarterly net swung to profit of $10.36 million compared to a loss of $13.51 million in the year ago period.

JD Sports Fashion Plc gained 0.80% to 877.00 pence after the sportswear retailer stated its newly incorporated 50.1% subsidiary JD Sprinter Holdings 2010 S.L., acquired the trading businesses that make up the Sprinter group of companies in Spain.

Separately, JD Sports acquired the business and assets of eight stores trading as Cecil Gee and the brand name Cecil Gee and an appropriate level of stock from Moss Bros Group Plc for a total net consideration of £1.7 million.