RAMSEY CROOKALL

29th  September 2011

Morning Report

The FTSE 100 is down 0.4%, weak but off earlier lows with banking stocks pushing up as investors hope that Germany will approve of expanding the European bailout facility when the country's parliament goes to vote later this morning. Royal Bank of Scotland is up 1.4% and Lloyds Banking Group up 0.3%. Mining stocks weigh as metal prices trade lower. Xstrata is down 1.9% and Antofagasta down 1.6%. In data, UK net consumer lending comes in line with views, while UK mortgage approvals are at their highest levels since December 2009.

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 10:05                    Down        22      @         5195

THE DOW JONES closed                     Down       179       @         11010                    NASDAQ COMP closed                       Down        55       @         2491 













Commodities Spot Gold $/Oz           $1625           Up             1.07% Brent Crude Oil          $105.07         Up             1.77%

September Delivery    Exchange Rates

GBP – USD           1.5676 GBP - EURO         1.1485