RAMSEY CROOKALL

29th  September 2011

Afternoon Report

The FTSE 100 trades lower, pressured by weak mining shares amid lower metal prices. Xstrata and Antofagasta are both down 2.3%. Although the London market is underperforming its peers, the overall tone in Europe of euro-zone states that approves the expansion of the European Financial Stability Fund, which will help to secure Greece's bailout. As a result, banks in London rise, with Royal Bank of Scotland up 1.9% and Lloyds Banking Group up 1.3%. Next up, attention is on the third release of US 2Q GDP data released before the US open.

Sweeteners group Tate & Lyle is in demand after saying it expects to perform in line with expectations over the full year after a strong performance in the six months to 30 September. In the specialty food ingredients division, corn-based specialty sweetener and starch volumes grew in line with the market, the firm said. The share price of Imperial Tobacco has been lit up by bid rumors.

Outsourcing giant Capita Group has won a contract with The Pensions Regulator to support the regulator's direct communications with employers for automatic enrolment of staff into workplace pension schemes which will be phased in from October 2012. The seven-year contract has an option for the regulator to extend it for a further three years and has an estimated value of £105 million.

Inter-dealer broker ICAP said revenue in the first half of its financial year was marginally ahead of the corresponding period of last year, giving it no cause to amend full-year expectations outlined at the time of his Annual General Meeting in July. Market traders might as well buckle up and prepare for a bumpy ride for the rest of the year if Michael Spencer, ICAP's group chief executive, is correct, as he predicts the recent high levels of volatility in financial markets will continue for the rest of the year. Compass said it put in “another good performance” in the fourth quarter of the financial year, with organic revenue growth expected to exceed 4%, though the catering giant has seen some pressure on volumes recently. Over the full year, Compass expects total revenue growth of 9%, or about 5% on an organic basis. 

THE FTSE 100 at 12:00                  Down        29       @       5188

THE DOW JONES closed                   Down       179       @       11010                    NASDAQ COMP closed                     Down        55       @       2491               Commodities Spot Gold $/Oz           $1613             Up      0.24 % Brent Crude Oil          $104.81           Up      1.50% September Delivery   

Exchange Rates GBP – USD           1.5647 GBP - EURO          1.1481

































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