RAMSEY CROOKALL & CO 26th October 2012             Morning Report

The FTSE 100 is down 0.6% at 5772.85, falling a little further into the red. Poor US earnings overnight have not  helped the tone and downbeat Spanish unemployment data added to the gloom. ARM is down following disappointing results from Apple. Today’s focus will be on the US GDP figures.  

Banking stocks were under pressure this morning after The Wall Street Journal reported last night that the probe into the manipulation of the London Interbank Offered Rate (LIBOR) has spread to nine more banks. These nine, which include Lloyds, Credit Suisse and Bank of America, have received subpoenas in connection with a probe, the paper said citing a person close to the matter. In London, Lloyds, RBS and Barclays were among the worst performers.

Pharmaceuticals giant Shire was a faller despite Deutsche Bank, UBS and Credit Suisse reiterated their 'buy' and 'overweight' ratings on the stock this morning. Shares were pulling back after a solid rise yesterday on the back its third-quarter results.

Leading the risers was diversified mining titan Anglo American after announcing that it is on the look out for another CEO after Cynthis Carroll revealed her decision to resign. "It is a very difficult decision to leave, but next year I will be entering my seventh year as Chief Executive and I feel that the time will be right to hand over to a successor who can build further on the strong foundations we have created," she said.

Speciality chemicals group Elementis was a faller after saying that full-year headline operating profits will be hit by a temporary slowdown in oilfield drilling. Nevertheless, the group said it remains on track to hit earnings per share (EPS) forecasts this year due to a lower tax rate.

African Barrick Gold also dropped after scaling back its production guidance for the full year following a "challenging" third quarter which saw output and sales shrink dramatically year-on-year.

THE FTSE 100              @ 10:00          Down      34        @      5770 THE DOW JONES            closed            Up       26        @      13103 THE NASDAQ               closed            Up        4         @      2986

Exchange Rates GBP – USD        @       10:00                1.6113 GBP - EURO      @       10:00                1.2458

Gold $/ OZ                          $1703