RAMSEY CROOKALL & CO
19th September 2012
Morning Report
The FTSE 100 trades flat despite a surprise move by the BOJ to ease monetary policy
further. BOE minutes are set to be released with most investors expecting an indication
of further accommodative monetary policy by year end.
Striking workers at Lonmin's Marikana operations are to return to work on Thursday after
a settlement was reached late on Tuesday night. The agreement includes a signing bonus
of R2,000 and an average rise in wages of between 11% and 22% for all employees falling
within the "Category 3-8" bargaining units, effective from 1st October 2012. This includes
the previously agreed 9-10% rises for these employees due to come into effect in October
2012. It also addresses issues of promotion for some categories of workers as well as
other allowances.
Technology company Smiths Group saw top line growth across all of its divisions last year,
as revenue broke through the £3bn barrier. Revenue for the year ended July 31st rose 7%, or
an underlying 5%, to £3,038m from £2,842m the year before, beating the £2,978m expected by
the market. Headline profit before tax was also above market expectations, rising 7% to
£554m from £517m the year before.
International engineering firm AMEC is buying a stake in a Brazilian oil and gas company as
it builds its presence in the largest deep-water market in the world. The agreement will
mean AMEC acquires a 50% stake in Kromav Engenharia from its owner managers for $12.5m in
cash. Kromav is a privately owned Brazilian offshore oil and gas and marine engineering
company based in Rio de Janeiro.
Online fashion and beauty store ASOS continued its recent barnstorming performance, boosting
revenues by a third in the last quarter. Retail sales were up 31% year-on-year, with a 15%
rise in the UK and a 42% jump in international trading.
THE FTSE 100 @ 10:00 Up 1 @ 5868
THE DOW JONES closed Up 11 @ 13564
THE NASDAQ closed Flat @ 3177
Exchange Rates
GBP – USD @ 10:00 1.6237
GBP - EURO @ 10:00 1.2461
Wednesday 19th, September 2012 11:23pm.