RAMSEY CROOKALL & CO 3rd October 2012

      Evening Report

The FTSE 100 ends 0.3% higher at 5825.81, supported by better-than-expected US data in the form of the ADP employment report and the ISM non-manufactring index. Still, gains are muted as question marks hang over Spain. At the same time, investors are unwilling to commit ahead of Thursday's BOE announcement and US initial jobless claims and Friday's key US nonfarm payrolls release. FirstGroup closed down nearly 21% after losing the UK West Coast rail franchise. Apple suppliers start mass production of a new tablet computer smaller than the current iPad, as the Silicon Valley company tries to stay competitive against rivals such as Google and Amazon.

Tesco announced that it expects the global economic environment to remain very challenging as it reported a drop in first-half net profit, dragged down by sluggish sales and the cost of a 1 billion pound ($1.61 billion) U.K. turnaround plan.

 J. Sainsbury reported that comparable sales in the second quarter rose 1.9%, with total sales excluding fuel up 4.4%, and said the company is positioned to perform well entering the Christmas period.

Pearson publisher of the Financial Times and educational books and materials, said Wednesday that Chief Executive Marjorie Scardino will step down after almost 16 years at the helm of company as it reshapes its business.

Commodities titan Glencore International officially notified the European Commission about its merger with Xstrata PLC (XTA.LN) late Tuesday after months of negotiations to pave the way for a quick approval of the deal, said a person familiar with the matter.

Bus and rail firm FirstGroup said Wednesday it had absolutely no indication there were any issues with the InterCity West Coast franchise letting process and had received assurances from the U.K. Department for Transport, or DfT, that their processes were robust and that they expected to sign the contract with FirstGroup soon.

 UAE-based oil rig engineer Lamprell said Wednesday, in its fourth profit warning this year, that its 2012 loss is expected to be significantly greater than previously anticipated as costs on delayed contracts continue to mount -- and it is looking to shake up senior management and bring in external advisors to assess the situation.

Pan African agricultural company Agriterra said Wednesday it has agreed to sell to the Ethiopian subisidiary of Marathon Oil Corp. (MRO) its 20% legacy interest in the South Omo Block, for $40 million in cash on completion and a further $10 million on Marathon's participation in a "Commercial Discovery".









THE FTSE 100             Closed           Up      16      @      5825 THE DOW JONES            @   17:00        Up      45      @     13527 THE NASDAQ               @   17:00        Up      13     @      3133

Exchange Rates GBP – USD                @       17:00                1.6074 GBP - EURO              @       17:00                1.2453

Commodities

Gold USD/OZ             @        17:00               $1,779