UK Home Prices Fall, HSBC Net Slumps 38%

Arthi Gupta
08 May, 2012
New York City

The UK indexes dipped after home prices declined and Irish sentiment improved for the fourth straight month in April. The UK manufacturers estimate exports to soar this year. HSBC quarterly net fell 38%. Thomas Cook agreed to new lending terms.

[R]3:30 PM London – The UK indexes dipped after home prices declined and Irish sentiment improved for the fourth straight month in April. The UK manufacturers estimate exports to soar this year. HSBC quarterly net fell 38%. Thomas Cook agreed to new lending terms.[/R]

The UK indexes dipped after mining stocks led the decliners

The UK manufacturers expect demand from emerging markets to surge this year, data published by EEF, the manufacturers'' organization and RBS.

In London, the benchmark index FTSE 100 declined 17.45 or 0.3% to 5,638.77 and the pound edged lower to $1.6150.

UK Home Prices Fall

Home prices in the United Kingdom declined in April, according to survey results released today.

The Royal Institute of Chartered Surveyors House Price Balance fell to minus-19 in April from minus-11 in March, revised downward from the originally reported minus-10.
London was the only region in the UK to report an increase in home prices.

Irish Sentiment Up

Ireland''s consumer confidence improved for the fourth consecutive month in April, data from a survey by the Economic and Social Research Institute and the KBC Bank Ireland showed today.

The consumer confidence index rose to 62.5 in April from 60.6 in March.

The outlook component of the headline index climbed to 51.7 in April from 51.2 in March.

Gainers & Losers

Aviva Plc gained 2.8% to 310.90 pence after the insurance group announced that Andrew Moss, chief executive officer, will be leaving the group.

HSBC Holdings plc climbed 0.7% to 558.70 pence after the banking and financial services organizations said first quarter net profit attributable to shareholders of the parent company fell 38% to $2.58 billion from $4.15 billion in the same quarter a year earlier. Total operating income was $20.44 billion, flat on the same quarter a year before.

Thomas Cook Group plc soared 4.8% to 22 pence after the leisure travel company agreed to a new financing package with its lenders.

The company has agreed to a £1.4 billion financial package with extended maturity until May 2015 and revised its financial covenants, offering a greater financial flexibility to the business.

TUI Travel PLC fell 1.3% to 187.30 pence after the leisure travel company said first-half revenues rose 5% to £5.45 billion from £5.21 billion last year, and pre-tax losses were flat at £367 million.