UK Confidence Drops and Auto Production Rises 5.8%

Arthi Gupta
19 Jan, 2012
New York City

The UK indexes climbed ahead of earnings in financial sector and consumer confidence fell and Irish inflation eased in December. The UK auto production rose 5.8% in 2011. Lloyds is expected to cut 700 jobs in the UK.

[R]3:40 PM London – The UK indexes climbed ahead of earnings in financial sector and consumer confidence fell and Irish inflation eased in December. The UK auto production rose 5.8% in 2011. Lloyds is expected to cut 700 jobs in the UK.[/R]

The UK indexes advanced on the strength in the financial sector and talks between Greece and lenders continue for the second day and consumer confidence index declined for the second month in a row.

Banks rallied on the hopes that earnings will be ahead of the expectations and Royal Bank of Scotland soared 7%, Barclays surged 9.4%, Lloyds jumped 6.2% and HSBC gained 3.4%.

UK companies revised up their marketing budgets for the second consecutive quarter in the fourth quarter, data from a survey by Markit Economics and IPA Bellwether showed today.

The survey showed that 20% of companies reported an upward revision compared to 19% that reported a reduction.

In London, FTSE 100 Index gained 25.48 or 0.5% to 5,728.28 and the pound edged higher to $1.5452.

UK Confidence Drops

Consumer confidence in the UK fell in December, a survey by Nationwide Building Society showed today.

The consumer confidence index fell to 38 in December from 40 in November. This was the second lowest score in the survey history.

UK Car Production Up

Automobile production in the United Kingdom increased in 2011 according to the data released by the Society of Motor Manufacturers and Traders showed today.

Total production climbed 5.8% from last year to 1,343,810 units in 2011 and auto production increased 1.6% from a year ago to 95,798 units in December.

Irish Inflation Eases

Ireland''s consumer price inflation eased to 2.5% in December from 2.9% in November, data released by the Central Statistics Office showed on Thursday.

From a month ago, the consumer price index fell 0.3% in December, after remaining flat in November.

Gainers & Losers

ASOS plc surged 20.4% to 1,797 pence after the holding company said third quarter group revenues rose 45% to £150.56 million from £104.13 million last year.

Associated British Foods Plc rose 1.2% to 1,151 pence after the food retailer said its revenues for the 16 weeks ended January 7 increased 12%.

BHP Billiton Ltd. climbed 0.9% to A$37.34 after the diversified natural resources company said that the rail line project between its Goonyella mine in Western Australia and a planned coal export terminal at the port of Abbot Point is on track.

Jupiter Fund Management Plc advanced 3.4% to 218 pence after the investment holding company said assets under management rose 2.3% to £22.81 billion in the fourth quarter from £22.3 billion in the previous quarter.

Lloyds Banking Group Plc soared 6.2% to 31.43 pence after the financial services group plans to cut 700 jobs in the UK as part of a plan to reduce employee numbers by 15,000, Bloomberg said citing an e-mailed statement from the company.

SABMiller Plc fell 0.4% to 2,286 pence after the brewer said revenues for the third quarter ended December 31 increased 7% on an organic and constant currency basis.

Lager volumes for the quarter were 3% ahead of last year, with growth in all markets except Europe and North America.