UK Household Finance Index Drops, RBS Plans More Staff Cuts

Arthi Gupta
24 Sep, 2012
New York City

The UK indexes slid after the household finance index dropped in September. Royal Bank of Scotland plans to slash 300 more jobs at its investment banking unit. A.G. Barr first half turnover rose 4.9% to

[R]3:15 PM London – The UK indexes slid after the household finance index dropped in September. Royal Bank of Scotland plans to slash 300 more jobs at its investment banking unit. A.G. Barr first half turnover rose 4.9% to £130 million.[/R]

The UK indexes trended lower on the weak sentiment in the euro zone and the latest private survey of Chinese businesses indicated falling demand and lowered expectations for sales.

The Bank of England’s Financial Policy Committee estimated that the risks to financial stability has not altered sufficiently since its previous meeting to warrant a change to its current set of policy recommendations.

In London, the benchmark index FTSE 100 declined 26.22 or 0.5% to 5,826.36 and the pound edged lower to $1.6208.

UK Household Finance Index Drops

UK household are the least downbeat about their financial outlook since March 2010, data from a survey by Markit Economics showed today.

The headline household finance index, which measures respondents'' views of their present financial situation, declined to 38.4 in September from the 20-month high of 38.9 in August.

The index measuring households’ assessment of year-ahead financial outlook increased to 44.3 in September, from 43.5 during August.

Gainers & Losers

Aberdeen Asset Management plc dipped 0.1% to 308.40 pence after the asset management company said assets under management at August 31 rose 1% to £184.3 billion from June.

A.G. Barr plc gained 0.3% to 452.20 pence after the soft drinks seller said first half turnover rose 4.9% to £130 million from the year before. Profit before tax and exceptional items for the period declined to £14.9 million, from £16.2 million in the corresponding period of last year.

Finsbury Food Group Plc rose 0.4% to 34.40 pence after the bakery goods maker said annual group revenue increased 9.4% to £207.4 million. Adjusted profit before tax climbed 11.6% to £6.5 million.

Staffline Group PLC dropped 1.3% to 223 pence after the preferred labor provider announced the acquisition of Go New Recruitment, a specialist provider of driving and logistics recruitment services.

The Royal Bank of Scotland Group plc slumped 2.1% to $8.72 after the lender plans to slash 300 more jobs at its investment banking unit raising it to 3,800 by the end of 2013.