UK Mortgage Lending Expands 6%; Irish Manufacturing Grows

Arthi Gupta
20 Sep, 2011
New York City

The UK indexes rose after gross mortgage lending increased to 25-month high but Irish manufacturing output prices decreased in August. Lloyds Banking Group slumped 4%.

[R]4:15 PM London – The UK indexes rose after gross mortgage lending increased to 25-month high but Irish manufacturing output prices decreased in August. Lloyds Banking Group slumped 4%.[/R]

The UK indexes edged higher after concerns of a Greek default eased. Greece appears to have made a progress with three groups of lenders after a conference call last evening that is expected to cut spending more.

Markets were volatile in early morning trading after ratings agency downgraded Italy''s sovereign credit rating by one notch to A from A+, five levels above junk, citing the nation''s weakening prospects for economic growth and a “fragile governing coalition.”

The rating agency also said the outlook is ""negative.""

The International Monetary Fund lowered the growth forecast for this year and next, citing slowing recovery in the world economy. The lender forecast 4% global growth for this year and next. In June, the IMF had projected 4.3% growth for this year and 4.5% expansion in 2012.

In London, FTSE 100 Index gained 95.06 or 1.8% to 5,354.76 and the pound edged lower to $1.5694.

UK Gross Mortgage Lending Rises

The UK gross mortgage lending increased to £13.4 billion in August, the highest monthly total since July 2009, data from the Council of Mortgage Lenders showed today. On a yearly basis the lending increased 10% and rose 6% from July.

Irish Factory Gate Prices Drop

Ireland''s manufacturing output prices decreased 1% on an annual basis in August, after decreasing 0.4% in July, data released by the Central Statistics Office showed. Prices decreased for the fifth month in a row.

Output prices of household goods rose 4.7% from a year ago and export sales prices declined 2.2% in August.

On a monthly basis, factory gate prices decreased 0.4% in August after remaining flat in July.

Blackstone, Prestige Bid for GSK''s OTC Business

Blackstone Group and Prestige Brands Holdings, Inc. have teamed up to jointly bid for healthcare major GlaxoSmithKline plc''s over-the-counter consumer drug business valued in a range of $2.3 billion to $3.1 billion, according to reports on Monday.

Gainers & Losers

Debenhams Plc gained 0.3% to 59.50 pence after the department store group reported for the 52-week period, underlying gross transaction value rose 2.9% and like-for-like sales, including value added tax, increased 1.2%.

KBC Advanced Technologies PLC rose 2.5% to 61 pence after the engineering consultancy stated first-half revenues rose 1.6% to £26 million from £25.6 million the previous year. Profit before tax in the period gained 22.2% to £2.2 million compared to £1.8 million the previous year.

Lloyds Banking Group Plc slumped 4% to $2.06 after the British banking group launched the sale of £1 billion worth portfolio of commercial property loans, the Financial Times reported.

Rio Tinto Plc climbed 0.74% to 3,531 pence after the miner expects production from Australian coal operations, which have nearly recovered from the floods early this year, to expand by around 50% by 2015 to around 73 million tonnes.

William Hill plc advanced 0.48% to 228.90 pence after the bookmaker, and betting and gaming company said it expects to make a cash offer for Probability plc.