RAMSEY CROOKALL

13th  October 2011

Evening Report

The FTSE fell 0.7% today, led lower by miners and financial firms, while Rolls-Royce Holdings PLC rallied after it announced a new joint venture.

Global power systems firm Rolls-Royce was the high riser on Thursday after it revealed two major initiatives which are expected to significantly raise its operating profits in the future. The company announced a new joint venture with a United Technologies Corp. division Pratt & Whitney. The two companies will cooperate to develop new engines for mid-sized aircraft. Under the deal, Rolls-Royce will also sell its stake in existing joint venture International Aero Engines to Pratt & Whitney for $1.5 billion. The shares closed up 9.9%

Hargreaves Lansdown also rose, after the wealth management stockbroking firm said first- quarter operating revenue rose 27% to £57.2m. The shares closed up 3.92%.

Ashmore Group sank 4.04% after it reported that its assets under management had dropped by nearly 11% over the fiscal first quarter as the group’s funds took losses on their investments. Man Group PLC fell 4.15%, adding to yesterdays heavy fall after the group reported a drop in the value of its flagship AHL fund.

Mining stocks and banks were the other big fallers in London. Shares in Anglo American PLC  dropped 4.7% and Kazakhmys PLC dropped 5.74% after data from China showed both exports and imports grew at a slower-than-expected pace in September.

Lloyds Banking Group and Royal Bank of Scotland Group PLC fell 6.2% and 6.52%, respectively, after Fitch Ratings downgraded both lenders to A from AA-minus, citing the reduced likelihood of them receiving government support in a future crisis. Barclays PLC also fell, dropping 7.2% after Fitch put the bank’s rating on negative watch.

THE FTSE 100 closed                     Down       38          @        5403

THE DOW JONES at 16:40                  Down       45          @        11423          NASDAQ COMP at 16:40                    Down       11          @        2592               Commodities Spot Gold $/Oz           $1662                Down                 0.74 %     Brent Crude Oil          $108.04              Down                 0.49 %









Exchange Rates GBP – USD           1.5739 GBP - EURO          1.1460