ARM jumped 8.5 percent & Rising UK Stocks

UK stocks rose, extending the highest level for the FTSE 100 index since June 2008, shares of ARM Holdings Plc surged.

ARM jumped 8.5 percent after Microsoft Corp. said it was preparing a version of Windows to run on chips from the company in the UK for the first time. British Sky Broadcasting Group Plc rose 2.1 percent amid speculation that the acquisition of News Corp. 's company will continue. Petrofac Ltd. rose to a record after the provider of oilfield services began work on the second phase of its proposed 3.4 billion U.S. dollars in Turkmenistan.

The FTSE 100 gained 0.3 percent to 5,969.72 at 2:13 pm in London. The index has risen more than 10 percent this year, driven by higher company earnings, low interest rates and U.S. data better-than-estimated economic. The FTSE All-Share Index also rose 0.3 percent today, while Ireland ISEQ Index fell 0.3 percent.

The shares rose even though the British economy slowed more than originally forecast in the third quarter after revisions to production services, construction and business. Gross domestic product increased 0.7 percent from the previous three months. That compares with the median of analyst estimates of 0.8 percent.

"The FTSE seems determined to reach the level of 6000 before the end of the year," said Manoj Ladwa, senior trader at London-based ETX Capital. "Even a weak GDP number can not keep the indicator in negative territory."

New operating system

ARM, which designs semiconductors power the iPhone of Apple Inc. 's, rose 8.5 percent to 437.8 pence. Two people familiar with Microsoft's plans said the world's largest maker of software will run a new version of the Windows operating system on ARM chips.

The new product will debut at the Consumer Electronics Show in January, said the people, who declined to be identified because Microsoft's plans are confidential. Microsoft will adapt the operating system for battery-powered devices such as Tablet PCs and other handhelds, the people said.

BSkyB rose 2.1 percent to 743.5 pence, the highest since February 2004. British Business Secretary Vince Cable, was stripped of the responsibility of the media, broadcasting and telecommunications by the government after he was quoted as saying he had "declared war" on News Corp. 's Rupert Murdoch

Cable had the power to decide whether BSkyB's acquisition of News Corp. Murdoch would give too much media power. News Corp., which owns four newspapers in the United Kingdom's best-selling, is waiting for the government to consider the agreement.

Petrofac rallied 1.6 percent to 1,581 pence after the company began work on a new phase of its South Yolotan in Turkmenistan. The second part of the project should last more than two years and will bring gas exports to 20 million cubic meters a year, Petrofac said.

Northern Foods, Greencore

Northern Foods Plc rose 7 percent to 64.8 pence, the most celebrated Boparan Holdings Ltd. said it may bid for the maker of Fox's biscuits, interrupting a fusion of all actions with Greencore Group Plc. Boparan, the owner of the 2 Sisters Food Group, said it is in the preliminary stage of evaluating a possible cash offer for Northern Foods. Greencore shares fell 4.9 percent to 1.27 euros in Dublin.

Mouchel Group Plc rose by a record 27 percent to 93 pence on the road and the maintenance company infrastructure said its board rejected a proposal for acquisition of Costain Group Plc, as "significantly" undervalues the company. Costain fell 1 percent to 204 pence.

Allied Irish Banks Plc fell 4.5 percent to 40.2 cents in Dublin. the second largest bank in Ireland was fined € 2 million ($ 2.6 million) for not having "the internal control mechanisms to prevent and correct common cases and many of overloading," the central bank of Ireland, said in a e-mailed statement.