RAMSEY CROOKALL & CO 31st October 2012

       Evening Report The FTSE 100 ends down 1.1% at 5782.70. BG Group is the standout faller, closing over 10% lower. Its 3Q results were largely in line but investors focused on disappointing production growth guidance for 2012 and 2013. Meanwhile, the reopening of Wall Street has proved a damp squib. US markets started higher in the first trading session of the week, but gains have been difficult to sustain with technology stocks under pressure.

BG Group shocked the market today by cutting back production guidance as a result of a number of delays to project start-ups. It now expects full-year production will be just three per cent higher than in 2011, while 2013 output is not expected to show any growth at all. The firm also announced that it would be selling 40% of certain interest in its Queensland Curtis LNG project in Australia for $1.93bn, as well as a sale of LNG from its global LNG portfolio.

UK banking giant Barclays dropped despite meeting forecasts in the third quarter with strong growth seen in adjusted pre-tax profits, from £1.34bn to £1.73bn. The firm however revealed new "legal and regulatory matters" which include two new probes in the US.

Pharmaceuticals giant GlaxoSmithKline's third quarter figures came in short of expectations on most fronts, while full year sales are now expected to be little changed from 2011. Against expectations of earnings per share (EPS) of 28.7p, Glaxo delivered 26.5p, down 13% year-on-year or down 11% on a constant exchange rates (CER) basis.

Meanwhile, shares in oil and gas producer Tullow Oil rose after the firm announced that its Twiga South-1 exploration well onshore Kenya Block 13T has successfully encountered oil. Sector peer Petrofac was also higher.

Life assurance company Standard Life gained after saying inflows across its long-term savings businesses plus a strong performance at Standard Life Investments helped to increase both group assets under administration and Standard Life Investments third party assets to record levels.

International Consolidated Airlines Group (IAG) gained back some of its losses made earlier this week as the passing of Hurricane Sandy made it once again possible to operate trans- Atlantic routes.















THE FTSE 100             closed           Down        67     @      5782 THE DOW JONES           @ 17:00           Down        37     @      13069                                                      THE NASDAQ              @ 17:00           Down        19     @       2968

Exchange Rates GBP – USD                 @       17:00          1.6125 GBP - EURO                @       17:00          1.2433

Gold USD/Oz                             $1,724