RAMSEY CROOKALL

17th  October 2011

Morning Report

The FTSE 100 is up 1.12% with financial stocks leading the gains as investors continue to be comforted by hopes given by G-20 leaders over the weekend that the debt crisis will be tamed by a 'comprehensive plan'. Banks rally on the news with Royal Bank of Scotland up 4.7% and Barclays up 3.84%. Attention turns to Citigroup earnings and US Empire State manufacturing data announced before the US open.

BP rose  4.84% in early trading after it reached agreement with Anadarko Petroleum to settle all claims between the companies related to the Deepwater Horizon accident. Anadarko, which had a 25% interest in the Macondo prospect, will pay BP $4bn in a single cash payment. BP will apply the payment to the $20bn trust it established that is available to meet individual, business and government claims, as well as the cost of the natural resource damages. Anadarko will also transfer all of its 25% interest in the MC252 (Macondo) lease to BP.

Heading the other way is G4S which has lost over 16% of its market value after announcing plans to create the world's largest security and facilities services group with the huge £5.2bn purchase of ISS. The transaction will be funded through a combination of new debt facilities and a seven for six rights issue at a price of 122p, a hefty discount to Friday's closing price of 275.2p, which will raise around £2bn.

The miners are also in demand, with Eurasian Natural Resources Corp, Xstrata and Vedanta on the rise. Sector peer Rio Tinto was higher after announcing the reorganisation of its Aluminium product group that will include the sale of 13 assets at some point in the future. THE FTSE 100 at 10:00                        Up         60           @          5526

THE DOW JONES closed                         Up          166          @         11644   NASDAQ COMP closed                           Up          47           @          2667               Commodities Spot Gold $/Oz           $1694                   Up                        0.79 %     Brent Crude Oil          $112.89                Up                        0.36  %

Exchange Rates GBP – USD           1.5800 GBP - EURO         1.1372