RAMSEY CROOKALL & CO 1st August 2012

Morning Report

The FTSE 100 is paring gains following the release of disappointing UK PMI manufacturing data. The index falls to 45.4 in July from 48.4 in June, below consensus expectations.

The response to trading updates from FTSE 100 heavyweights Standard Chartered and Next has been positive, but it is in the FTSE 250 space where the drama is, as energy support services firm Cape issued a profit warning. The group is unlikely to meet previous expectations for 2012, with problems likely to continue into 2013, despite a restructure of this part of its business.

Standard Chartered bank saw profit before tax for the six months to the end of June was up 9% to $3,636m from $3,139m the year before, in line with operating income, which improved to $9,511m from $8.764m in the first half of 2011.

Fashion firm Next continues to march to a different drum than the rest of the retail sector, with its online and catalogue sales coming to the rescue in a period when umbrellas were the must-have accessory to any outfit.Total sales for the first half of 2012 were up 4.5% against last year, the firm said, topping its prediction of growth between 1% and 4%. Like-for-like sales came in at 2%, beating some analysts' expectations of a rise of just 1%. Sales at its online and catalogue Next Directory arm were up 13.3% on last year making up for high street retail sales which crept up just 0.2%.

Apple lawyers have begun their opening statements in the company's patent trial with Samsung by arguing Samsung blatantly knocked-off the iPhone and portraying the smartphone as a revolutionary and risky device.

THE FTSE 100             @ 10:00      Up         26      @      5,662 THE DOW JONES            closed       Down      64      @     13008 THE NASDAQ               closed      Down        6      @      2939 Exchange Rates GBP – USD        @      10:00          1.5644 GBP - EURO      @      10:00           1.2705