Oct. 19 (Bloomberg) -- U.K. stocks advanced, rebounding from two days of losses, amid conflicting newspaper reports that Germany and France have agreed to further boost the euro area's bailout fund, the European Financial Stability Facility.
Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc jumped more than 3 percent. British Sky Broadcasting Group Plc climbed after saying operating profit rose 16 percent.
The benchmark FTSE 100 Index increased 0.7 percent to 5,450.49 at the close in London. The FTSE All-Share Index and Ireland's ISEQ Index added 0.5 percent. The FTSE 100 has advanced for the past three weeks amid optimism that European policy makers will devise a solution to the crisis that has brought Greece to the brink of default.
“The mood in equity markets turned amidst suggestions that an agreement had been reached over bolstering the EFSF,” Ben Critchley, a sales trader at IG Index in London, wrote in a note. “Such suggestions were quickly met with rebuttals, however, it's been difficult to establish the veracity of either call, so for the time being at least, traders do seem to be taking the glass-half-full approach.”
The Guardian newspaper reported that Germany and France have agreed to boost the region's rescue fund, known as the EFSF, to 2 trillion euros ($2.8 trillion) from 440 billion euros. German Finance Minister Wolfgang Schaeuble told lawmakers from the country's governing Christian Democratic Union that the euro area may increase the EFSF to a maximum of 1 trillion euros through an insurance model, Financial Times Deutschland said.
French, German Talks
France and Germany are still working on how to increase the power of the rescue fund as part of a comprehensive agreement to help banks and Greece, a person with direct knowledge of the talks told Bloomberg News.
German Chancellor Angela Merkel late yesterday said that the euro-area summit on Oct. 23 will mark an “important step,” though not the final one in solving the debt crisis. The comments marked the second time in two days that the German government sought to lower expectations.
Home Retail Group Plc sank 17 percent to 99.5 pence after saying first-half earnings plunged 70 percent. The owner of the UK's Homebase home-improvement chain said sales since the end of the period have failed to improve as expected.
From today, prospective homeowners in Blaby district can apply to the Local Lend a Hand scheme, which is aimed at helping people buy a home with a deposit of just 5 per cent. Blaby District Council has joined forces with Lloyds TSB and will guarantee

London's blue chip index made solid progress despite a tough day for the retail sector after Argos owner Home Retail Group revealed falling sales of TVs and video game consoles had hammered profits. The FTSE 100 index closed 40.1 points higher at

A dismal day for Home Retail, 16p lower at 103.6p, has hurt other retailers. Marks & Spencer, 3.7p down at 325.7p, and Next 27p down at 2531p, shared the pain. Financial stocks on the way up included Lloyds Banking Group, which added 1.3p to 33.4p,
Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, property, commercial automobile, general liability, global specialty, group disability, reinsurance and surety
HRZ surged 6.25%, to close at $0.340 and its overall traded volume was 1.75M shares in the last trading session. HRZ opened the day at $0.31, it made an intraday low of $0.31 and an intraday high of $0.38. The stock has a 52 week range of $0.25 – $5.95. At current market price, the market capitalization of the company stands at $10.51M and it has 30.91M outstanding shares.
Horizon Lines, Inc. operates as a holding company for Horizon Lines, LLC and other direct and indirect, wholly owned subsidiaries that provide ocean transportation services and support (collectively, Horizon Lines). Horizon Lines operates as a Jones Act container shipping business with primary service to ports within the continental United States, Puerto Rico, Alaska, Hawaii and Guam. In addition to these domestic and international liner services, Horizon Lines supports shippers and carriers by providing terminal services, stevedoring, and integrated logistics service offerings, including rail, trucking, warehousing, distribution and non-vessel operating common carrier (NVOCC) services. HTH fell -3.53%, to close at $7.38 and its overall traded volume was 139,739.00 shares in the last trading session. HTH shares were trading within the range of $7.35-$7.59 while its opening price was $7.59. The stock has a 52 week low of $6.88 and 52 week high of $10.52. At current market price, the market capitalization of the company stands at $416.96M and it has 56.50M outstanding shares. Hilltop Holdings Inc (Hilltop), formerly Affordable Residential Communities Inc. is a holding company. The Company provides fire and homeowners insurance to low value dwellings and manufactured homes in Texas and other areas of the south, southeastern and southwestern United States through its wholly owned property and casualty insurance holding company, NLASCO, Inc. (NLASCO).