UK Indexes Lower, Household Finance Index Rises

Arthi Gupta
25 Jun, 2012
New York City

The UK indexes trended lower tracking the European markets and the UK household finance index rose in June. Shire plunged 13% after the FDA approved the abbreviated new drug applications for generic Adderall XR filed by Actavis.

[R]2:00 PM London – The UK indexes trended lower tracking the European markets and the UK household finance index rose in June. Shire plunged 13% after the FDA approved the abbreviated new drug applications for generic Adderall XR filed by Actavis.[/R]

The UK indexes fell tracking the lower European markets as leaders in the region haggle one more time to devise ways to increase banking union. The slow moving talks among leaders with little progress and reactionary tone of political leaderships in the union have sapped market sentiment as world economic growth falters.

Spain submitted an official request for financial aid to recapitalize banks today but left out the exact amount of aid and finance minister said in a letter that the estimates of the IMF and two independent consultants are a good baseline to work from.

European Union is the largest trading partner of the UK and falling economic growth is likely to drag exports to the region.

The British economy needs at least another £50 billion cash injection to kick-start recovery, Bank of England policymaker David Miles said in an interview with Financial Times.

Miles said higher-than-expected commodity prices, which pushed up inflation and eroded household incomes, was one of the key reasons behind poor growth data.

In London, the benchmark index FTSE 100 fell 44.69 or 0.8% to 5,470.20 and the pound edged lower to $1.5554.

UK Household Finance Index Up

Households in the UK report least downbeat financial outlook since April 2010, a survey by Markit Economics showed today.

The household finance index rose to 37 in June from 36.6 in May pointing to a sharp deterioration in current financial conditions.

Gainers & Losers

Anglo American plc fell 1.6% to 2,033 pence after the mining company and Codelco agreed to extend the period for exploring the possibility of negotiating an agreement in relation to Anglo American Sur.

Shire plc plunged 12.6% to 1,718 pence after the specialty biopharmaceutical company said the U.S. Food and Drug Administration''s responded to its Adderall XR citizen petition and is consistent with its recent decisions on other long acting ADHD products.

The FDA also informed Shire that it has approved the abbreviated new drug applications for generic Adderall XR filed by Actavis. However, Shire believes that it will remain competitive in the Adderall XR marketplace through the distribution of branded Adderall XR and through its two authorized generic partners, Teva and Impax.

SSE PLC dipped 0.2% to 1,374 pence after the electric utility company completed the acquisition of Phoenix Supply with the enterprise value of £19.1 million excluding working capital related adjustments.

William Morrison Supermarkets plc fell 1.2% to 265.20 pence after the food retailer said its group Finance Director Richard Pennycook intends to step down at the end of June.

WPP plc fell 1.6% to 751 pence after the advertising and marketing company announced that Burson-Marsteller, its wholly-owned global public relations and public affairs firm agreed to acquire communications consultancy, i&e SAS in France.