RAMSEY CROOKALL & CO 13th September 2012

      Morning Report

The FTSE 100 is down slightly, slipping back into negative territory after posting small early gains. Next PLC extends its losses and is now down 7% after some commentators point out a shaky start to trading in 2H. BAE Systems is 5.5% lower as investors assess the possible link up with EADS. In the absence of any economic data for the UK, many traders will likely sit on their hands until the FOMC policy announcement late in the afternoon.

 High Street retailer Next tanked early on after warning: "We remain cautious about the economic outlook.  Disappointing sales in an unusual August and early September reinforce the wisdom of this conservative approach." Revenues rose 4.8%, while profits increased 10.2% in the first half.

Defence group BAE Systems was a heavy faller, pulling back after surging yesterday on discussions with aerospace giant EADS regarding a “possible combination” of the businesses.

Accountancy software group Sage was leading the risers as big speculation continues to lift the stock. The Daily Mail reported earlier this week that private-equity firms KKR & Co and Blackstone could make a £5.58bn offer.

British telecoms giant BT was extending yesterday's gains after sealing a “ground- breaking” £152m deal on afternoon for a range of exclusive live rights for Premiership Rugby, dealing a massive blow to current broadcaster BSkyB.

Electronics components supplier Premier Farnell gained after seeing the year-on-year decline in its top line slow in the second quarter, as it sacrificed margin to protect market share.

The day after the much ballyhooed release of Apple's iPhone5, chip designer Imagination Technologies released a well-timed trading update in which it revealed its business momentum has continued in the new financial year. Nevertheless, shares fell sharply early on.

Homewares retailer Dunelm rose after saying pre-tax profit climbed a better than expected 15.1% in the first half and while it remains cautious of the UK consumer environment it is confident in the future prospects of the business.

THE FTSE 100              @ 10:00             Down       8       @      5773 THE DOW JONES            closed               Up       9        @     13333 THE NASDAQ               closed               Up         9        @      3114







Exchange Rates GBP – USD        @       10:00                1.6116 GBP - EURO      @       10:00                1.2474