UK-Business Summary

Mon 24 Aug, 2009 17:28

Oil sets 10-month high on recovery hopes

PORTLAND, Maine (Reuters) - Oil prices rallied to a 10-month high near $75 a barrel on Monday, part of a broad global rally in commodities and equities markets propelled by expectations for an economic recovery. U.S. crude rose 59 cents to $74.48 a barrel by 12:00 EDT (5:00 p.m. British time) after peaking at $74.81, the highest intraday price since October 21. Brent crude gained 16 cents to $74.35.

Business confidence positive in Q3

LONDON (Reuters) - Business confidence has turned positive for the first time in two years, the Institute of Chartered Accountants in England and Wales (ICAEW), said on Monday. ICAEW said the Business Confidence Monitor (BCM) showed a record rise in confidence from -28.2 to +4.8, the largest quarterly improvement since the monitor began in 2003, and predicts that gross domestic product will rise 0.5 percent this quarter.

Germany urges calm over Opel

BERLIN/FRANKFURT (Reuters) - The German government sought to calm a growing trans-atlantic row over the fate of carmaker Opel on Monday as unions threatened "spectacular measures" to force a decision by U.S. parent General Motors. Negotiations over Opel, which GM is selling as part of a government-orchestrated restructuring, have dragged on for months, fuelling anger among its 50,000 European workers, half of which are in Germany.

Centrica secures control of Venture

LONDON (Reuters) - British Gas owner Centrica (CNA.L) has lifted its interest in Venture Production to above 50 percent, taking the utility closer to a full takeover of the oil & gas producer. Centrica said in a Monday statement it had bought a further 8.4 percent of Venture shares, taking its holding to 40.1 percent following a $2 billion (1.2 billion pound) hostile offer.

Warner Chilcott buying P&G drug unit

NEW YORK (Reuters) - Warner Chilcott , an Irish drugmaker that specializes in contraceptives and female hormone treatments, will buy Procter & Gamble's pharmaceuticals business for $3.1 billion (1.9 billion pounds), the companies said on Monday. P&G's branded drugs, including osteoporosis treatment Actonel and Enablex for overactive bladder, have annual sales of $2.3 billion. Warner-Chilcott's annual revenue totals about $1 billion.

Bovis profit slumps on writedowns

LONDON (Reuters) - Housebuilder Bovis Homes (BVS.L) posted a slump in underlying pretax profit but confirmed a growing trend of stabilisation in the housing market, pushing its shares to a near 18-month high. The housebuilder said it made good progress in the first half, boosted by its private sales rate, lower overhead costs and reduced debt, leaving it well positioned to invest in land.

Santander buys back bonds to bolster balance sheet

MADRID (Reuters) - Santander has launched a buyback programme for securitised bonds worth some 16.5 billion euros (14 billion pounds) in nominal terms to boost its balance sheet, the Spanish bank said on Monday. The bonds were issued by units of Santander or funds it manages.

Creditors back Focus DIY rescue plan

LONDON (Reuters) - Creditors in British home improvements retailer Focus DIY backed a rescue plan on Monday that should safeguard around 4,500 jobs. Focus, owned by U.S. private equity group Cerberus, said its creditors, mostly landlords, had approved its proposed Company Voluntary Arrangement (CVA) by over 90 percent in a vote.

Petrofac sees FY earnings up 20 percent

LONDON (Reuters) - Oil and gas services company Petrofac said it expects net profit to rise at least 20 percent this year due to a string of new contracts in the Middle East. The company, whose activities range from designing and building oil and gas infrastructure to safety training, posted a 20 percent rise in first-half net profit on Monday, in line with forecasts, and raised its dividend by 43 percent.

FTSE hits highest close in 10.5 months

LONDON (Reuters) - Britain's top share index hit its highest closing level in 10-1/2 months on Monday, mirroring rallying global equities as reassuring comments from key central bankers helped drive optimism over the pace of global recovery. The benchmark FTSE 100 (UKX.L) ended 0.9 percent higher, or 45.34 points at 4,896.23, the highest closing level since Oct 3. The fifth straight session of gains earlier saw the index hit a peak of 4,911.41.