RAMSEY CROOKALL & CO 17th October 2012      Evening Report

The FTSE 100 ends 0.7% higher at 5910.91, supported by encouraging UK employment figures and relief that Moody's has kept its investment-grade credit rating on Spain. Much stronger- than-expected US housing starts also helped the tone. Miners gained as did  BP on news that it's nearing a deal to sell its stake in TNK-BP to Rosneft.

Bank of England policy makers were divided over the impact a further round of bond buying would have on the U.K. economy, the minutes of the central bank's October policy meeting revealed today.

The Royal Bank of Scotland is set to leave the government insurance scheme that was set up at the height of the financial crisis to protect the company from collapse. Analysts said this could pave the way for RBS to be sold back into the private sector. It is currently 82%-owned by the UK taxpayer after receiving a £45bn bailout in 2008.

Anglo-Australian mining giant BHP Billiton saw iron ore output rise year-on-year in the third quarter, but fall from the previous quarter's production levels as a result of the planned shut-down associated with the Inner Harbour expansion project in Western Australia. Iron ore production was up 1% year-on-year but down 3% quarter-on-quarter to 39.8m tonnes.

Xstrata, the Switzerland-based miner which looks set to merge with commodities trader Glencore, said volumes of thermal coal, zinc and lead in concentrate and zinc metal in the third quarter increased year-on-year. Volumes of copper and nickel declined, however.

Diageo is in talks to buy a stake of about 20% in Vijay Mallya’s in a deal that would give it management control of the Indian distiller, said two people with knowledge of the matter, Bloomberg News reports. Diageo would buy new shares in United Spirits and also purchase part of Mallya’s 28% stake, said the people, who asked not to be identified as the process is private. Diageo would get the right to appoint United Spirits’s Chief Executive Officer and other key managers, while Mallya is expected to remain Chairman, they said.

Diageo recorded a rise in sales helped by the ongoing recovery of the U.S. spirits market and increasing demand for premium liquor in emerging economies, but also warned of softness in some Asian markets amid a bumpy global economy.

THE FTSE 100             closed               Up         40       @      5910 THE DOW JONES            @ 17:00              Down       6        @     13545 THE NASDAQ               @ 17:00              Up         7        @      3108

Exchange Rates GBP – USD        @       17:00              1.6164 GBP - EURO      @       17:00              1.2309









Gold USD/Oz                         $1,751