RAMSEY CROOKALL

7th  October 2011

Afternoon Report

The FTSE 100 is down 0.3%, remaining slightly lower as investors await the release of nonfarm payrolls.  RBS and Lloyds Banking Group are still the biggest losers, down 3.5% and 3.2%. The banks were among the 12 financial institutions downgraded by Moody's earlier Friday. Also on the economic calendar, US wholesale inventories are announced later this afternoon.  Retailers are performing, with Sainsbury, Kingfisher and Morrison making gains.

Miners and energy stocks are in demand. Xstrata rose after announcing that - through its Xstrata Coal subsidiary - it has agreed to expand its presence in the Peace River Coalfield, Canada. Fellow miner Vedanta was also firmer despite seeing a 36% decline in first half production of saleable iron ore.

Finnish nickel and zinc miner Talvivaara Mining lost over 20% of its market value after chief executive Pekka Pera resigned as the company goes into cash conservation mode. The company said that, in view of the current volatility and uncertainty in the commodity and financial markets, it has developed a revised operating plan and made the strategic decision to focus on maximizing profitability of operations rather than the production volume over the remainder of 2011.

 India-focused Vedanta Resources PLC said Friday it expects to complete the purchase of a majority stake in oil and gas explorer Cairn India Ltd. (532792.BY) by the end of the year.

THE FTSE 100 at 12:00                   Down        19        @         5272

THE DOW JONES closed                Up          183       @         11123              NASDAQ COMP closed                      Up          46        @         2506               Commodities Spot Gold $/Oz           $1654                  Up                0.26 % Brent Crude Oil          $104                   Down              0.36 % September Delivery   

Exchange Rates GBP – USD           1.5514 GBP - EURO          1.1545