RAMSEY CROOKALL & CO 10th September 2012

      Morning Report

London's blue-chip index opened broadly flat in early trading on Monday as investors remained nervous ahead of another pivotal week for the global economy. The index has since traded down 0.14%.

Mining stocks were performing well this morning, with Xstrata among the risers following Friday's eleventh-hour adjustment to the offer by Glencore. Glencore released its proposal to Xstrata this morning, saying that "it is content with Xstrata's request for Xstrata management and senior employees to receive appropriate retention and incentive packages."

UBS said that the outlook for the UK mining sector is improving with quantitative easing (QE) measures now expected. The broker said: "QE triggers a return of capital flows to emerging markets, incentivising companies to stop running for cash and embark on a commodity bullish restocking phase. As in the past, QE is likely to drive up commodity prices and in turn mining equities." Vedanta, Rio Tinto and Kazakhmys were high risers early on.

Banking group Barclays is slightly ahead after UBS raised its target for the stock from 205p to 235p and reiterated its 'buy' recommendation. The broker said that there is "potentially significant upside if new CEO changes strategy".

Oil major BP rose on rumours that it is in advanced talks to sell a group of oilfields in the Gulf of Mexico to US outfit Plains Exploration & Production.

Primark and sugar group AB Foods was out of favour despite saying that adjusted operating profits in the second half will be well ahead of last year and in line with expectations.

Spirax-Sarco was performing well after Goldman Sachs upgraded the stock to 'buy' and raised its target from 2,100p to 2,510p. Meanwhile, Laird headed the other way after the US broker cut its recommendation to 'sell'.

THE FTSE 100             @ 10:00         Down    8          @      5786 THE DOW JONES            closed          Up       14         @     13306 THE NASDAQ               closed          Flat                @      3136

Exchange Rates GBP – USD        @       10:00                   1.5994 GBP - EURO      @       10:00                   1.2513