RAMSEY CROOKALL & CO May 24th 2012

Morning Report

The FTSE 100 is up 0.5%, recovering some ground after paring gains slightly following the release of UK GDP data. The UK's 1Q GDP has been revised down to negative 0.3% quarter on quarter, from initial estimates of a 0.2% decline.

Financials were among the best performers early on, rebounding after their recent falls. Old Mutual, Standard Chartered, Admiral, Schroders and HSBC were on the rise. Mining peers Randgold Resources and Fresnillo were also making gains early on as precious metals prices improved.

Brewing group SABMiller was flat after mixed full-year results as strong growth in Latin America and Africa offset declines in crisis-torn Europe. Group revenue in the year to March 31st rose 11% to $31,388m.

Oil titan Shell was on the up after extending the offer deadline for AIM- listed Cove Energy after its previously recommended offer was trumped by Thai firm PTT Exploration and Production (PTTEP) on Wednesday.

United Utilities edged higher after saying that it has seen a marked improvement in customer satisfaction in the last year or so, and it is on track to meet regulatory out-performance targets.

International mobile operator Cable & Wireless Communications jumped over 10% after underlying earnings came in at $901m in the year to the end of March, better than the $887m estimate. Investors didn't seem too phased that the group expects to halve its dividend in the current year.

THE FTSE 100             @ 10:00      Up       29    @      5,295 THE DOW JONES            closed       Down      6    @     12496 THE NASDAQ               closed      Up       11    @      2850 Exchange Rates

GBP – USD       @      10:00           1.5669 GBP - EURO     @      10:00           1.2480



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