RAMSEY CROOKALL & CO 10th October 2012

      Morning Report

The FTSE 100 trades down, nudging lower on weak US and Asian markets overnight.   Investors continue to worry about global growth.  Banks fare well, however, with traders pointing to a story in the Financial Times saying that the FSA has softened capital requirements under the funding for lending scheme.

Smith & Nephew, Kingfisher and Wolseley were among the falls early on after going ex-dividend. From today, investors will not be able to get hold of their latest dividend payments.

Banking groups were in demand in the opening hour with Lloyds, RBS and Barclays making gains. RBS has agreed to sell two building in Frankfurt and Berlin to Axa Investment Managers, the largest German commercial real estate transaction this year, according to reports.

Outsourcing group Capita was a heavy faller after both RBC Capital Markets and Panmure Gordon downgraded their ratings for the stock. Panmure said that the Capita's premium rating "is at odds with concerns over the quality of future earnings, above average financial leverage and on-going reliance on M&A."

Drinks giant SABMiller edged higher after expanding its African beer brand, Chibuku, into ten countries across the continent.

On the FTSE 250, N Brown, the internet and catalogue home shopping firm, was a heavy faller after Panmure Gordon downgraded its recommendation to 'hold' ahead of the group's interim results next week. "We move to a 'hold' rating from 'buy', following sector outperformance and consequent multiple expansion towards our target multiple on the back of the July trading statement," the broker said.

THE FTSE 100             @ 10:00           Down      19     @      5790 THE DOW JONES            closed            Down    110   @     13473 THE NASDAQ               closed            Down      47    @      3065

Exchange Rates GBP – USD        @       10:00            1.6009 GBP - EURO      @       10:00            1.2436

Gold USD/Oz                      $1,764