UK Indexes Up 1.9%; BP, Reliance Finalize $7.2 Billion Deal

Arthi Gupta
30 Aug, 2011
New York City

The UK indexes gained after mortgage approvals increased and M4 money supply fell in July. BP inked $7.2 billion deal with India-based Reliance Industries. Bunzl surged 4.3% after first-half revenues grew 4% to

[R]3:50 PM London – The UK indexes gained after mortgage approvals increased and M4 money supply fell in July. BP inked $7.2 billion deal with India-based Reliance Industries. Bunzl surged 4.3% after first-half revenues grew 4% to £2.44 billion.[/R]

In London, FTSE 100 Index surged 95.83 or 1.87% to 5,225.51 and the pound edged lower to $1.6283.

UK Mortgage Approvals Rise

The UK mortgage approvals increased to 49,239 in July from 48,500 in June, according to data released by the Bank of England today.

Lending secured on dwellings rose by £0.7 billion in July. Consumer credit increased £0.2 billion in July compared to the £0.4 billion growth in June.

UK M4 Money Supply Drops

UK broad money aggregate M4 dropped a seasonally adjusted 1.1% annually in July, following a 0.7% fall in June, data from Bank of England showed. Money supply fell for the tenth month in a row.

On a monthly basis, M4 money supply decreased 0.1% in July, after a seasonally adjusted 0.4% drop in June.

BP Inks Deal With Reliance Industries

BP plc completed a $7.2 billion deal to acquire a 30% stake in 21 oil and gas blocks operated by Reliance Industries Limited in India, including the producing eastern offshore Krishna Godavari basin or KG D6 block, the two companies said Tuesday.

The two companies will also form a 50:50 joint venture to source and market gas in India, which will accelerate the creation of infrastructure for receiving, transporting and marketing natural gas.

Vodafone Confirms Talks for Wind Hellas

Vodafone Group, the British cell phone carrier confirmed that it has entered into discussions with Largo Limited to explore a potential business combination between Vodafone Greece and Wind Hellas Telecommunications SA, Greece''s third biggest telecom operator.

Gainers & Losers

Accenture Plc gained 0.02% to $52.97 after the management consulting, technology services and outsourcing company said the company and Vmware, Inc. expanded their existing relationship with a technology agreement to perform the joint development, marketing and delivery of a customized set of solutions initially focused on three areas.

Afren Plc soared 4.8% to 100.10 pence after the oil and gas explorer reported first-half revenue declined 25% to $161.01 million from $214.75 million in the previous year. Profit for the period plunged 59% to $20.66 million or 2 cents per share from $50.72 million or 5.2 cents per share a year ago.

Bunzl Plc surged 4.29% to 753 pence after the distributor of non-food consumable products reported first-half revenues grew 4% to £2.44 billion from £2.35 billion last year. Profit before tax for the period increased 12.1% to £112.1 million from £100 million in the previous year.

Regus Plc gained 5.55% to 67.55 pence after the provider of office outsourcing services reported first-half revenues rose 9.7% to £565.6 million from £515.5 million last year. Profit for the period was £24.6 million or 2.5 pence per share compared to a loss of £7.8 million or $0.8 pence per share last year.

WPP Group Plc rose 2.20% to 628.50 pence after the global media communications services company said it has made a non-binding offer to acquire the shares of D.A. Consortium Inc., an advertising and marketing services company based in Japan, from Asatsu-DK Inc. for 36,550 yen per share.