RAMSEY CROOKALL

22nd   September 2011

Afternoon Report

The FTSE 100 extends losses, losing 4.7% as concerns about the global economy continue to weigh. Poor PMI data from the euro zone, a pessimistic statement by the Fed after the close Wednesday and a lack of conviction that Greek austerity measures will be passed through locally all combine to weigh on investor sentiment. A dearth of local data provides nothing to buck the trend. Still, coming up are US initial jobless claims and euro zone consumer confidence numbers, which could potentially brighten the session.

Resource stocks are providing the biggest downward pressure for markets, tracking lower commodity prices. BP PLC gave up 3.6% and Royal Dutch Shell tumbled 2%.

In addition to oil majors, heavyweight mining stocks such as Rio Tinto PLC slid 5.8% and BHP Billiton PLC fell 4.7%. United Utilities has confirmed it is on track to deliver its out-performance targets. First half revenue came in higher than last year, though operating expenses are also on the up. The group said it intends to accelerate some £100m of previously agreed pension deficit payments, providing a higher investment return for the group than could have been achieved through short term deposits. The shares are still lower today though.

EasyJet bucks the trend after it said the increase in total revenue per seat at constant currency for the second half of the year is expected to be towards the upper end of its expectations at around 6%, which means full year growth will be around 3%. Full year profit before tac is now expected to be between £240m and £250m.

Tim Breedon, Group Chief Executive of Legal & General has advised them of his intention to retire from the company at the end of 2012. The insurance giant will announce a successor in due course.

THE FTSE 100 at 12:00                     Down       252      @      5035

THE DOW JONES closed                      Down       283      @      11124    NASDAQ COM closed                         Down        50      @       2538               Commodities Spot Gold $/Oz           $1752 Brent Crude Oil          $107.16 September Delivery     Exchange Rates GBP – USD           1.5445 GBP - EURO          1.1424