UK Manufacturing Up; Confidence Slumps to 3-Year Low

Arthi Gupta
03 Jan, 2012
New York City

The UK indexes climbed after manufacturing rose unexpectedly but business confidence fell to a 3-year low in December. Chile-based Codelco exercised its option to buy 49% stake in Anglo American Sur for $6 billion.

[R]2:30 PM London – The UK indexes climbed after manufacturing rose unexpectedly but business confidence fell to a 3-year low in December. Chile-based Codelco exercised its option to buy 49% stake in Anglo American Sur for $6 billion.[/R]

The UK indexes gained after the manufacturing sector showed signs of stabilization at the end of 2011.

In London, FTSE 100 Index gained 64.22 or 1.2% to 5,636.40 and the pound edged higher to $1.5584.

Crude oil rose above $110 a barrel today and brent crude futures climbed $2.97 to $110.35 a barrel.

UK Manufacturing Rises

The UK manufacturing sector showed signs of stabilization at the end of 2011, according to data released by Markit Economics today.

The seasonally adjusted manufacturing Purchasing Managers'' Index rose unexpectedly to 49.6 in December from a revised reading of 47.7 in November. The index below means that the growth industry is declining.

UK Confidence Drops

Businesses in the UK turned more pessimistic at the end of and predict a 3-in-4 probability of a recession, a survey on behalf of a unit of Lloyds Banking Group PLC showed.

The net balance of survey opinions fell to a 3-year low of -23 in December from -20 in November. The balance fell for a third consecutive month.

Codelco Exercises Option

Codelco made a regulatory filing to exercise its option to buy 49% stake in Anglo American Sur SA, the Chilean unit of Anglo American, for an estimated price of about $6 billion.

However, confirming the receipt of a related letter from Codelco, Anglo American said it is not obliged to sell any of the Chilean unit''s shares to Codelco.

Gainers & Losers

Blinkx PLC slumped 4.3% to 73.25 pence after the video search engine firm formed a partnership with LifeMinute.TV, a portal to free, broadcast-quality video and audio content.

Carillion Plc rose 2.3% to 307.70 pence after the integrated support services company said it received a £104.9 million contract to transform another section of the M6 motorway in Birmingham, between Junctions 5 and 8, into a managed motorway.

Yell Group Plc dipped 0.2% to 5.28 pence after the multinational directories company named Matt Anderson, chief strategy and business development officer.