RAMSEY CROOKALL

13th  October 2011

Morning Report

The FTSE 100 trades lower amid choppy trading. In the US, trade balance and initial jobless claims figures are announced before the US open. In domestic data, the U.K.'s trade deficit narrowed by more than expected in August, official statistics released today showed, due to record exports and a decline in imports of oil and chemicals.

Rolls-Royce rallied 6.71% after the aerospace group late Wednesday announced a new joint venture with United Technologies Corp. division Pratt & Whitney to develop engines for mid-size aircraft.

Investment manager Ashmore Group has dropped 5.26% after it said its assets under management had shrunk by nearly 11% over the fiscal first quarter.

British Airways parent International Consolidated Airlines Group rose 2.29% in London after Deutsche Bank upgraded the stock to buy from hold, citing a compelling valuation and stronger-than-expected premium traffic in September.

Newsagents WH Smith reported a record profit performance from its Travel segment in the year to the end of August. Profit before tax rose 4% to £93m from £89m the year before.

Total group sales were £1,273m (2010: £1,312m) with like-for-like (LFL) sales down 5%. ravel sales grew by 1% to £455m, down 3% on a LFL basis. High Street sales were down 5% at £818m and down 6% on a LFL basis (excluding entertainment, LFL sales were down 3%).

THE FTSE 100 at 10:00                       Down         26         @         5415 THE DOW JONES closed                        Up           102        @         11518             NASDAQ COMP closed                          Up           21         @         2604               Commodities Spot Gold $/Oz           $1674     Flat                                      Brent Crude Oil          $108.35                Down                    1.57 %

Exchange Rates GBP – USD           1.5688 GBP - EURO         1.1408