UK Mortgage Approvals Fall; BP, Reckitt Benckiser Net Up

Arthi Gupta
25 Oct, 2011
New York City

The UK indexes dropped after European finance ministers postponed their meeting. The UK current account deficit narrowed in the second quarter and mortgage approvals dropped unexpectedly in September. U.S.-based Hain Celestial agreed to acquire Daniels Group for $230 million.

[R]5:00 PM London – The UK indexes dropped after European finance ministers postponed their meeting. The UK current account deficit narrowed in the second quarter and mortgage approvals dropped unexpectedly in September. U.S.-based Hain Celestial agreed to acquire Daniels Group for $230 million.[/R]

UK stocks turned lower and euro zone ministers postponed their meeting that was scheduled tomorrow. UK current account deficit narrowed in the second quarter and mortgage approvals dropped in September.

In London, FTSE 100 Index declined 22.52 or 0.4% to 5,525.54 and the pound edged higher to $1.5969.

The UK Ministry of Defence selected Lockheed Martin UK, part of Lockheed Martin Corp. to lead a £642 million or $1 billion, contract as part of the major £1 billion or $1.6 billion, upgrade of the British Army''s Warrior Armoured Fighting Vehicle.

UK Deficit Narrows

The UK current account deficit narrowed in the second quarter to the lowest level since the first quarter of 2008, data published by the Office for National Statistics showed.

The deficit dipped to £2 billion from a revised £4.1 billion in the first quarter.

UK Mortgage Approvals Fall

The UK mortgage approvals dropped unexpectedly in September, the British Bankers'' Association said on Tuesday.

The number of mortgage approvals fell to 33,130 in September, from 35,069 in August. Overall mortgage approvals, including home purchase and re-mortgage, fell to 72,641 in September from 77,582 in August.

Hain Celestial Acquires Daniels Group

The Hain Celestial Group, Inc., the natural and organic products acquired Daniels Group, a manufacturer of chilled foods in the UK, for approximately $230 million in cash.

Hain noted that the chilled/fresh category represents over 50% of food sales in the UK and is the fastest-growing category in the grocery sector.

Gainers & Losers

ARM Holdings Plc rose 2.5% to 590 pence after the chip maker reported third quarter revenues rose 20% to £120.17 million, from £100.35 million last year. On an IFRS basis, profit increased 113% to £31.45 million or 2.3 pence per share versus £14.8 million or 1.1 pence per share reported a year ago.

BG Group Plc soared 4% to 1,379.50 pence after the energy company reported third quarter revenues jumped 21% to $5.40 billion from $4.45 billion last year. Net profit in the quarter climbed 21% to $1.06 billion or 31.1 cents per share from $876 million or 25.8 cents per share a year ago.

BP plc surged 4.4% to $43.68 pence after the oil and exploration company third quarter total revenues and other income gained 31% to $97.60 billion compared with $74.65 billion in the previous year. Net profit in the quarter increased 175% to $4.91 billion or 25.57 cents per share from $1.785 billion or 9.38 cents per share in the comparable period.

Lloyds Banking Group Plc fell 0.5% to $2.18 pence after banks traded lower on the worries that the euro zone bank recapitalization plan will fall short of expectations.

Reckitt Benckiser Group Plc declined 3.4% to 3,330 pence after the manufacturer of household and health care products said third quarter net revenues rose 16% to £2.45 billion from £2.11 billion in the year ago quarter. Net income in the quarter increased 9% to £465 million or 63.2 pence per share from £426 million or 58.4 pence per share last year.