RAMSEY CROOKALL & CO 16th October 2012        Morning Report

The FTSE 100 up 0.5%, paring gains by a handful of points. GKN leads the downside, falling after results which show the Driveline business is suffering. On the upside, Lloyds Banking Group is higher, helped by Monday's solid results from Citigroup and in anticipation of Goldman Sachs earnings out later Tuesday. Earlier, data showed UK CPI was +2.2% on the year in September, down from +2.5% in August, in line with economists' forecasts.

Diversified mining group Rio Tinto rose after announcing  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".

UK housebuilder Bellway was a high riser after delivering a solid increase in full- year pre-tax profit, helped by a strong performance in London, and said reservations since July 31st have remained in line with expectations.

Internet and catalogue home shopping firm N Brown wasn't far behind after reporting that sale and profits ahead of expectations in the first half, with like-for-like (LFL) sales growth accelerating in the second quarter.

Mining group Bumi fell after financier Nathaniel Rothschild resigned from the board, saying he had lost confidence in the management's ability to stand up for investors.

Gold miner Petropavlovsk rose after saying it was on track to achieve its full-year production target of at least 700,000oz.













THE FTSE 100              @ 10:00       Up       27    @      5833 THE DOW JONES            closed         Up       95    @     13424 THE NASDAQ               closed         Up       20    @      3064

Exchange Rates GBP – USD        @       10:00             1.6096 GBP - EURO      @       10:00             1.2373

Gold USD/Oz                      $1,741