RAMSEY CROOKALL & CO 6th July 2012 Morning Report

The FTSE 100 is down 0.3% at 5677.34, edging lower following the release of UK data showing producer output prices fell 0.4% in June from May. Marks & Spencer is the biggest faller, down 2.5% ahead of a trading update next week. On the upside, though, Aviva is 2.8% higher after confirming that it's reducing its stake in Delta Lloyd. Overall, the tone is fairly cautious, as investors await the release of the key nonfarm payrolls report at 12:30.

Aviva plc shares are outperforming the rest of the market on news that the company intends to sell part of Delta Lloyd. Following its news yesterday of a change in strategy and the disposal of up to 25m shares in Delta Lloyd, it has now announced that due to favourable investor demand, it is increasing the size of the disposal to 37m shares. This accelerated book build will end this morning and Aviva has also committed to a longer lock-up period than previously stated.

Ryanair, under threat of High Court action from the Office of Fair Trading, has agreed to act over its hidden credit card charges. The budget airline, under threat of High Court action from the Office of Fair Trading, has agreed to act over its hidden credit card charges — one of the biggest running sores among the numerous complaints levelled against it. The budget airline has promised to withdraw the charges for online transactions, which are added as a final insult on top of taxes, flight fees and the added costs of baggage, insurance, seat reservations and priority boarding.

WPP announced "an application has been made to the UK Listing Authority and to the LSE for 1,595,151 ordinary shares of ten pence each in the capital of the Company to be admitted to the Official List maintained by the UK Listing Authority and to trading on the London Stock Exchange."

Associated British Foods announced the acquisition by Westmill Foods of Elephant Atta and smaller related ethnic flour brands from Premier Foods.

Premier Foods will continue to mill and package the flour with the brands being managed independently from Westmill Foods until regulatory approval is obtained. The cash consideration for the acquisition is £34M.

THE FTSE 100              @ 10:00       Down     8     @      5,683 THE DOW JONES            closed         Down    47      @      12896 THE NASDAQ               closed         Flat     @      2976 Exchange Rates GBP – USD        @      10:00           1.5540 GBP - EURO      @      10:00           1.2548