UK Services Growth Improves; Michael Page Plunges 10%

Arthi Gupta
05 Dec, 2011
New York City

The UK indexes climbed on euro area optimism. The UK service sector growth improved in November and manufacturing industry association lowered its estimate for the growth in the sector to 0.9% from the previous forecast of 2.2%. Aberdeen Asset Management Plc fiscal year 2011 net surged 83%.

[R]2:30 PM London – The UK indexes climbed on euro area optimism. The UK service sector growth improved in November and manufacturing industry association lowered its estimate for the growth in the sector to 0.9% from the previous forecast of 2.2%. Aberdeen Asset Management Plc fiscal year 2011 net surged 83%.[/R]

UK indexes traded higher ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Paris later today.

Italian Cabinet approved measures to trim expenses and stimulate economy on Sunday and estimated that the budget will be balanced in the next fiscal year.

European markets gained after Italian Prime Minister Mario Monti announced a financial plan on Sunday aimed at savings of €20 billion from 2012 to 2014 and increasing the pension ages of both men and women. The new measures will balance the budget next year, increase the pension age and also introduce property tax.

In London, FTSE 100 Index gained 45.67 or 0.8 % to 5,597.90 and the pound edged higher to $1.5645.

UK Services Sector Growth Improves

The UK service sector growth improved in November, the latest survey report from Markit Economics showed.

The seasonally adjusted Markit/ Chartered Institute of Purchasing & Supply business activity index rose to 52.1 in November, from 51.3 in October.

Separately, British manufacturers estimated a contraction in order books over the coming quarter, a survey conducted by the Engineering Employers Federation and business advisers BDO showed.

The federation also trimmed its 2012 manufacturing growth forecast to 0.9% next year compared to its previous forecast of 2.2%.

Irish Service Sector Expands

Activity in the Irish service sector increased in November, data from a survey by Markit Economics and NCB showed on Monday.

The seasonally adjusted purchasing managers'' index for the service sector rose to 52.7 in November from 51.5 in October, marking the eleventh successive growth in activity. The latest rate of growth was the biggest since February.

UK Government Net Reserves Drop

The UK government’s net reserves fell by $249 million in November, bringing the end-November total to $45.56 billion compared with $45.81 billion at the end of October, the HM Treasury said today.

Gross reserves also decreased in November to $96.93 billion from $97.57 billion in October.

Gainers & Losers

Aberdeen Asset Management Plc soared 5.7% to 215 pence after the asset manager reported fiscal 2011 revenues increased 23% to £784 million from £638.2 million last year. Profit for the year surged 83.3% to £169.7 million or 14.06 pence per share compared to £92.6 million or 8.04 pence per share a year ago.

Carillion Plc gained 3.1% to 304.20 pence after the integrated support services company announced that the company and its joint venture partner Qatar Building Company has been awarded a £395 million contract for a major phase of the Msheireb Downtown Doha project developed by Msheireb Properties.

Lo-Q plc increased 5.1% to 196 pence after the virtual queuing technologies developer signed an agreement with an international subsidiary of Mastercard Inc.

Michael Page International Plc plunged 9.9% to 328.80 pence after the staffing firm estimated full year pre-tax profits for 2011 to be marginally below the bottom end of the current range of analyst forecasts of £86.5 million to £114.2 million, citing weakening markets.

Ryanair Holdings plc fell 1.9% to €3.67 after the Irish low-cost airline said November load factor was flat from a year ago at 80%, but added that passenger volumes slid 8% to 4.68 million.

TUI Travel Plc dipped 0.1% to 169.40 pence after the tour operator reported revenues for the year ended September 30 grew 9% to £14.69 billion from £13.51 billion a year ago. Profit for the full year was £85 million or 7.6 pence per share compared to loss of £123 million or 11.1 pence per share in the prior year. The company also restated prior year results.