RAMSEY CROOKALL & CO April 18th 2012

Morning Report

The FTSE 100 trades 0.1% lower, stepping lower following the release of mixed UK jobs data. Figures show the unemployment rate fell unexpectedly in the three months to February, but the number of people claiming jobless benefits rose to its highest level for two and half years. Meanwhile, the latest BOE minutes leave it looking less likely the Committee will announce any further monetary easing next month.

Bank of England policy makers decided against providing further stimulus at their April meeting, while acknowledging that official data may show that the U.K. economy entered recession in the first quarter.

Supermarket giant Tesco has delivered full year results in line with latest market consensus, as it announced plans to slash capital expenditure in the current fiscal year. Underlying profit before tax in the 52 weeks to February 25th rose 1.6% to £3.9bn, marginally ahead of market expectations of £3.6bn. Sector peers Morrison and Sainsbury were also in demand.

Mining group BHP Billiton was a high riser after iron ore production at its Western Australian operations still hit record levels in the nine months to the end of March, despite cyclone activity depressing third quarter production. Meanwhile, Fresnillo has hailed a strong start to 2012 with gold production beating its own expectations and silver output being on target. Evraz, ENRC and Vedanta Resources were also higher.

Financials were leading the downside this morning, with Resolution, Legal & General and Old Mutual among the heaviest fallers.

International distribution and outsourcing group Bunzl fell despite saying trading in 2012 has been strong, with the group seeing solid top line growth and an improvement in the group operating margin.

Engineering group GKN also underwhelmed the markets to fall after reporting a 17% increase in year-on-year sales in the first quarter.

THE FTSE 100             @  10:00             Down      6      @      5,760 THE DOW JONES            closed               Up        194    @     13115 THE NASDAQ               closed              Up       54     @      3034

Exchange Rates

GBP – USD       @      10:00              1.5978 GBP - EURO     @      10:00              1.2206



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