UK Home Prices Drop 2.4%, Rentokil Plummets 5%

Arthi Gupta
04 May, 2012
New York City

The UK indexes slumped after home prices dropped more than estimated and new car registrations rose in April. Irish output fell for the second straight month in March. Warner Chilcott swung to quarterly profit.

[R]3:35 PM London – The UK indexes slumped after home prices dropped more than estimated and new car registrations rose in April. Irish output fell for the second straight month in March. Warner Chilcott swung to quarterly profit.[/R]

The UK indexes declined on weak economic data in Europe and smaller increase in the U.S. employment.

Traders are also looking ahead this weekend’s elections in France, Germany, Italy and Greece this weekend and the outcome may force politicians to back-off their commitment to austerity measures.

Across the Atlantic, U.S. employers added fewer jobs than estimated in April and new additions declined for the third month in a row.

In London, the benchmark index FTSE 100 slumped 99.76 or 1.8% to 5,667.59 and the pound edged higher to $1.6187.

For the week, the FTSE 100 plunged 1.9%.

UK Car Registrations Rise

UK new car registrations rose 3.3% in April from a year ago to 142,322 units, the Society of Motor Manufacturers and Traders said.

SMMT lifted its 2012 full year forecast to 1.95 million units, 0.4% higher than in 2011.

UK Home Prices Drop

UK home prices dropped 2.4% in April offsetting the 2.2% gain in March, data from the Lloyds Banking Group''s Halifax division showed.

Prices in the three months to April decreased 0.5% from a year ago.

England/Wales Company Insolvencies Up

The number of company insolvencies in the first quarter in England and Wales rose 4.3% to 4,303 from a year ago, data from the Insolvency Service showed today.

Total insolvencies were made up of 1,238 compulsory liquidations, which climbed 11.1% from the previous year, and 3,065 creditors'' voluntary liquidations, that gained 1.8% annually.

Irish Production Falls

Ireland''s industrial production on a monthly basis fell 2.7% in March, following a 3.2% drop in February, the Central Statistics Office reported today.

On a yearly basis, it slumped 5.7% in March compared to the 3% fall recorded in February.

Gainers & Losers

Aon plc plunged 4.7% to $48.93 after the risk and insurance broker reported first quarter total revenues rose 3% to $2.84 billion from $2.76 billion in the same quarter last year. Net income for the quarter declined 3.3% to $238 million or 71 cents per share compared to net income of $246 million or 71 cents per share for the prior year quarter.

Rentokil Initial Plc plummeted 5.1% to 82.20 pence after the business services group said first quarter revenue increased 3.6% to £624.4 million, pre-tax profit surged 175.9% to £13.4 million and adjusted pre-tax profit rose 1.1% to £26.3 million.

Rolls-Royce Holdings plc fell 1.5% to 846 pence after the aircraft-engine maker reported business in the year so far is in consistent with the earlier guidance.

Royal Bank of Scotland Group plc rose 1.5% to 24.91 pence after the banking and insurance holding company said first quarter loss attributable to ordinary and B shareholders widened to £1.52 billion from a loss of £528 million last year.

Core operating profit fell 25% to £1.67 billion from £2.22 billion in the same quarter last year.

Warner Chilcott plc dipped 0.5% to $21.53 after the Irish pharmaceutical firm said first quarter total revenue fell 9.5% to $685 million. Net income in the quarter was $113 million or 45 cents per share compared with a loss of $24 million or 10 cents per share last year.