By Barbara Kollmeyer
MADRID (MarketWatch) -- London's benchmark stock index was
trading near its highest levels in six months on Thursday, led by
BT Group and British Airways.
The FTSE 100 index rose 0.9% to 5,779.87, levels not seen since
April, according to FactSet Research. The index gained 0.4% on
Wednesday as investors took in stride details of the U.K.
government's plans to cut spending.
Positive earnings momentum from Europe and the U.S. underpinned
London gains.
BT Group PLC rose to the top of the London gainers in the
afternoon, up 4.7%. Media reports said a court in London has ruled
that the government will have to cover the bulk of BT Group's
pension liabilities, even if the company goes bankrupt. That
includes employees who joined the company after privatization.
Shares of British Airways rose 3.9% on hopes a lengthy battle
between management and the cabin crew is coming to an end. The
union representing cabin crew, Unite, said on its website Wednesday
that BA has made a new offer to end the dispute and it will be put
to ballot "as soon as possible."
No details of the offer were given, but the Financial Times,
citing persons close to the situation, said the company would be
restoring travel perks, though not for two-and-a-half years.
Shares of Anglo American PLC gained 2.8% after the company said
platinum output jumped 11% in the third quarter and diamond
production rose 15%.
China's economy grew 9.6% in the third quarter against a year
earlier, data showed. .
Mining stocks are sensitive to Chinese economic news as the
nation requires vast natural resources to fuel growth. Gold and
copper futures were also higher on Thursday. Shares of Lonmin PLC
rose 2.8%, while Rio Tinto (RIO) added 2.5%.
On the downside in London, shares of TUI Travel tumbled 11%,
hard hit by news that the company will have to restate its accounts
for 2009 and that its Chief Financial Officer Paul Bowtell will
resign at the end of the year.
TUI Travel also said it would need to write off 117 million
pounds ($184.8 million) as a result of an ongoing audit for the
full year ended in September. "These have arisen as a result of
failures to reconcile balances adequately in legacy systems in the
retail and tour operator businesses in TUI U.K.," the company said
in a statement.
Negative news also weighed on shares of Tullow Oil , which fell
1.5%. The firm said its Ghana Onyina-1 well has encountered a
water-bearing reservoir.