RAMSEY CROOKALL & CO 16th October 2012

      Evening Report

The FTSE 100 ends 1.1% higher at 5870.54. Better-than-expected 3Q earnings from Goldman Sachs, and signs that Spain may ask for a bailout soon, both lent support. Encouraging US industrial output figures and NAHB housing market index also helped to keep the mood upbeat. Banks fared well with Lloyds Banking Group, Royal Bank of Scotland and Barclays gaining. GKN is the biggest loser, down after its 3Q update disappoints. Among mid-caps, N Brown surged nearly 14% after well-received interim results.

Royal Bank of Scotland Group has suspended a senior member of its rates trading team as part of the bank's ongoing internal probe into its alleged role in the manipulation of interbank lending rates, a person familiar with the matter said.

Financier Nathaniel Rothschild, one of the founders of embattled U.K.-listed Bumi said Monday he has resigned with immediate effect from Indonesian coal miner's board, citing loss of confidence in the chairman and the board.

Bellway, a U.K. housebuilder, recorded a increase in full year pretax profit and said reservations since July 31 have remained in line with expectations.

The U.K. Serious Fraud Office on Monday said it has dropped its three-year investigation into the collapse of Icelandic bank Kaupthing Bank hf, saying in a short statement that "there is insufficient evidence to justify its continuation."

Diversified mining group Rio Tinto rose after hailing a strong set of production results in the third quarter, with iron ore, copper, bauxite, alumina, and titanium dioxide output up year-on-year.

Sector peer Anglo American gained after saying that the illegal occupation of the Sishen Mine - owned by its subsidiary Kumbia Iron Ore - has been brought to an end by police. The company said it could get back to business as soon as possible.

Airline group IAG was a faller after Liberum Capital downgraded its recommendation for the shares to 'sell'.

Global engineering firm GKN fell after warning that macroeconomic conditions have deteriorated in recent weeks and it was seeing evidence of softening in order books.





















Telecoms titan BT Group was in demand after Nomura reiterated its 'buy' rating on the stock, saying it prefers it to Vodafone on "structural growth drivers and dividend outlook".

Details of the eagerly awaited London Stock Exchange Group plc sterling retail bond were announced this afternoon, offering a 4.75% coupon over 9 years. The bond will mature in 2021.

THE FTSE 100             closed       Up         64     @      5870 THE DOW JONES            @ 17:00       Up         121    @     13545 THE NASDAQ               @ 17:00       Up         29    @      3093

Exchange Rates GBP – USD      @       17:00               1.2353 GPB - EURO @ 17.00 1.2353 Gold USD/Oz                         $1,744