By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Another round of strong manufacturing
data from the U.K. helped lift the FTSE 100 index on Friday, while
Vodafone Group PLC climbed after reports of a possible
takeover.
The FTSE 100 index gained 0.2% to 6,743.22, putting it on track
for a 0.3% weekly advance.
The move came as the Markit/CIPS manufacturing purchasing
managers' index showed activity at U.K. factories grew at a rapid
pace in October, suggesting the industry made a strong start to the
final quarter of the year. The gauge edged down to 56.0 in October
from a downwardly revised 56.3 in September, but stayed above the
50-level that separates expansion from contraction.
"Manufacturing may not be the key driver of the current U.K.
recovery at the moment and hard data has so far not lived up to the
buoyant surveys. But with the domestic economy recovering strongly,
all important export markets either growing or at least improving
and a broadly stable exchange rate, output in this key sector looks
set to contribute its share to the recovery," said Christian
Schulz, senior economist at Berenberg, in a note.
Among notable movers in London, shares of Vodafone (VOD) picked
up 2.9% after Bloomberg reported that AT&T Inc. (T) executives
are exploring a takeover of the U.K. wireless-telecom giant as soon
as next year. Representatives from AT&T and Vodafone declined
to comment. Shares of AT&T rose 1% on Wall Street.
Royal Bank of Scotland Group PLC (RBS) slid 6.4% after reporting
a decline in third-quarter revenue and a 828-million-pound ($1.32
billion) loss for the period. The bank said it has agreed to set up
a "bad bank" to avoid a breakup.
Other banks in London were, however, mostly higher, tracking the
positive sentiment. Shares of HSBC Holdings PLC (HBC) gained 1.1%
and Standard Chartered PLC rose 0.2%.
Shares of Royal Dutch Shell PLC (RDSB) climbed 1.5% after RBC
Capital Markets reiterated its outperform recommendation on the oil
group. Elsewhere in the sector, BP PLC (BP) added 0.5% and BG Group
PLC rose 0.2%, even as oil prices declined.
Meggitt PLC sank 11% after the provider of wheels and brakes for
military aircraft lowered its full-year revenue guidance.
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