RAMSEY CROOKALL

26th  August

Morning Report

The FTSE 100 is down 0.5%, nudging off lows after the second release of UK 2Q GDP. The data are unchanged at up 0.2% on a monthly basis and up 0.7% year on year. AMEC is the biggest decliner after being downgraded by Societe Generale. Investor attention is firmly focused on the US Fed chairman Ben Bernanke's speech at Jackson Hole this afternoon. The second release of US 2Q GDP is announced before the US open. Car insurer Admiral is a high risers, recovering after its recent decline 3 day decline, it hits 1 year low yesterday at £12.79. The stock has also benefitted from a positive broker update from Deutsche bank upgrading the stock from hold to Buy. However, Insurance group Resolution Ltd  has fallen 1.4% after the same Broker, Deutsche Bank ,cut its rating on the stock to hold from . Both re-rating have come about as part of  the bank’s insurance sector rating revamp.

Mining giant Rio Tinto fell lower despite the independent directors of Australian tock Exchange-listed miner Coal & Allied having given the green light to plans by Rio and Japanese trading house Mitsubishi Corporation to take full ownership of the company.

Specialty chemicals producer Yule Catto rose higher after it posted sharp rise in half year pre-tax profit helped by strong demand from Asia and its PolymerLatex acquisition.

Eastern Europe-focused oil producer Exillon Energy was out of favour despite moving into the black in the first half of 2011, as production hit record levels for the company.

THE FTSE 100 at  9:50           Down        24        @       5106

THE DOW JONES closed            Down        170       @       11149                       NASDAQ COM closed               Down        48        @       2419                      Commodities

Spot Gold $/Oz           $1785 Brent Crude Oil          $110.09 September Delivery   

Exchange Rates

GBP – USD          1.6332 GBP - EURO         1.1309