UK Confidence Falls, Home Prices Up; BSkyB Net Falls 8%

Arthi Gupta
29 Jul, 2011
New York City

The UK indexes dropped after consumer confidence fell to a two-year low in July and home prices increased 0.2% in July. UK mortgage approvals increased in June. British Sky Broadcasting net declined 8%.

[R]3:30 PM London – The UK indexes dropped after consumer confidence fell to a two-year low in July and home prices increased 0.2% in July. UK mortgage approvals increased in June. British Sky Broadcasting net declined 8%.[/R]

Republican lawmakers delayed a critical vote on House Speaker John Boehner''s bill for raising the U.S. debt ceiling. The bill is expected to be brought to the floor later today as Boehner needs six more votes to pass the bill.

The U.S. is only three days away from a debt default that could slow the incipient economic recovery and raise rates.

Moody''s Investors Service today placed Spain''s Aa2 government bond ratings on review for possible downgrade.

In London, FTSE 100 Index declined 81.21 or 1.36% to 5,791.88 and the pound edged higher to $1.6417. For the week, the FTSE 100 Index fell 2.4%.

UK Confidence Weakens

An index measuring consumer confidence in the United Kingdom fell to minus 30 from minus 25 in June, the latest survey results from research firm GfK NOP showed on Friday. All five measures of the index decreased this month.

UK Home Prices Up

Home prices in the UK increased 0.2% on a monthly basis in July, according to the latest survey results from Nationwide Building Society.

UK Mortgage Approvals Rise

The number of loan approvals for house purchase in the UK increased to 48,421 in June from 46,418 in May, according to data released by the Bank of England today.

Total lending to individuals increased £0.4 billion in June as against the £1.4 billion increase in May. Within total lending, lending secured on dwellings fell £0.1 billion.

UK M4 Money Supply Drops

UK broad money aggregate M4 dropped a seasonally adjusted 0.7% annually in June, following a 0.3% fall in May, data from Bank of England showed on Friday. Money supply fell for the ninth month in a row.

On a monthly basis, M4 money supply decreased 0.5% in June.

Gainers & Losers

Anglo American Plc fell 2.85% to 2,912.50 pence after the miner reported first-half Group revenue, including associates, grew 22% to $18.29 billion from $15.02 billion in the same period last year. The company''s profit before tax surged 68% to $6.57 billion from $3.9 billion in the previous year.

British Sky Broadcasting Group Plc declined 1.26% to 707 pence after the pay-TV broadcaster reported fiscal year 2011 revenue grew 16% to £6.6 billion from £5.71 billion a year ago. Profit for the year declined 8% to £810 million or 45.9 pence per share versus £878 million or 50.1 pence per share last year.

Fuller, Smith & Turner Plc gained 0.04% to 695.25 pence after the brewer and pub chain said its managed pubs and hotels like-for-like sales increased 3.2% during the first 16 weeks of this year and the Tenanted Inns like-for-like profits rose 1%.

Rentokil Initial plc surged 3.43% to 93.40 pence after the provider of business-to-business support services stated second quarter revenues climbed 2.4% to £639.2 million from £624.5 million in the prior-year quarter. Profit before tax for the quarter soared 63% to £24.3 million from £14.9 million.

Vedanta Resources Plc climbed 0.9% to 1,783 pence after the mining and metals company stated first quarter 2011 EBITDA surged 33% to $1.055 billion from $793.9 million in the prior-year period.