UK Miners, Banks Rebound; BA Strike

Mayank Mehta
16 Dec, 2009
New York City

British Air and its cabin crew union meet to avoid a strike during the holiday period. UK unemployment rate for the quarter ending in October was unchanged at 7.9% with 2.49 million unemployed. Banks and miners led the gainers in London trading.

[R]4:00PM London, 11:00 AM New York – British Air and its cabin crew union meet to avoid a strike during the holiday period. UK unemployment rate for the quarter ending in October was unchanged at 7.9% with 2.49 million unemployed. Banks and miners led the gainers in London trading.[/R]

UK stocks edged higher after the dollar traded lower and that lifted miners. Banks gained after the Basel Committee on Banking Supervision is more than likely to delay the enforcement of capital adequacy rules for large banks.

In London FTSE 100 Index closed higher 14.83 or 0.2% to 5,300.60 and the pound edged higher to close at $1.626 and at €1.117.

UK unemployment rate for three months to October was unchanged to 7.9% from the previous quarter. The number of unemployed people increased 21,000 in the quarter to 2.49 million, the highest since three months to March 1995.

Gainers & Losers

AstraZeneca PLC added 0.9% to 2,856.50 pence said The US Food and Drug Administration Endocrinologic and Metabolic Drugs Advisory Committee today voted 12 in favor, 4 against, and 1 abstained that company has established sufficient benefit to offset the observed risks to support the use of CRESTOR.

British Air increase 0.2% to 197 pence after the cabin crew union of 13,000 voted to strike beginning December 22. The airline sued in the court seeking an injunction against the strike and said that the Unite voting did not exclude the staff members that are leaving the company. Chief executive Willie Walsh and union leaders began their “unconditional talks” to avert the strike.

The airline is looking to reduce costs by £140 million by reducing the work to part time or voluntary departure of as many as 1,700 cabin crew.

Drax Group plc the power station operator advanced 3.1% to 422.90 pence.

GKN plc climbed 0.2% to 115.20 pence after the automotive and aerospace engineer said government incentive programs continue to provide some support for sales of smaller light vehicles and improved production demand. Production of mid-sized vehicles, where company has greater exposure, has also increased in a number of markets as sales have shown some signs of recovery and inventory levels stabilized.

International Public Partnership Limited the public and social infrastructure investment group dropped 0.3% to 113.70 pence.

Kesa Electricals plc decreased 0.7% to 153.30 pence an electrical retailing company said first-half sales rose 7.6% to £2.35 billion from £2.18 billion a year ago. Net profit for the first-half was £1.7 million or 0.3 pence per diluted share compared to net loss of £99.9 million or 18.9 pence per share a year ago.

Laura Ashley Holdings plc the women’s apparel and home accessories designer and retailer closed unchanged at 14.00 pence.

Laird PLC increased 8.8% to 118.90 pence after the electrical component maker said visibility of customer demand has, and continues to be, limited and volatile and expects that underlying profit before tax for the year will be in line with market expectations.

Petrofac Limited advanced 0.3% to 974.50 pence an international oil and gas facilities service provider expects the group will deliver profit after tax for the year of at least $330 million, 25% higher than last year.

Pinewood Shepperton plc closed unchanged at 135.00 pence after the film studio said since its interim management statement on October 22, trading is in line with market expectations.

The Company today announces that it has entered into a strategic agreement with Khazanah Nasional Berhad in connection with the development of a new film and television studio facility in Iskandar, Southern Malaysia.

Punch Taverns plc declined 3.4% to 78.35 pence after the pub chain said business conditions are difficult and said that short term profitability will be affected but did not provide any financial data.

Xchanging plc the off-shoring specialist fell 0.2% to 205.40 pence.