RAMSEY CROOKALL

18th  August

Afternoon Report

The FTSE 100 is down significantly, although it has pulled back from earlier lows as traders sought bargains. Banks continue to suffer under investor concerns about euro-zone debt contagion and the proposed tax on financial transactions.

Barclays is down 4.7% and Lloyds Banking Group is off 4.2%. Still to come, US initial jobless claims announced at 12:30 , with the Philadelphia Fed index and existing home sales both released at 2 o clock.

The miners are among the worst performers, with Kazakhmys, Vedanta and Rio Tinto among the heaviest fallers, partially offsetting the gains made yesterday.

FTSE 100 mining giants Anglo American, BHP Billiton and Xstrata fell despite announcing that a coal mine in Colombia, in which they own a 33.3% interest each, has received approval for its $1.3bn expansion project.

Banking titans Royal Bank of Scotland, HSBC and Barclays are also out of favour, extending losses made yesterday. Suggestions that European leaders could resurrect the idea of a financial transaction tax sent shares of financials into a spin on Wednesday.

International Power, the power generator that is 70% owned by French utility company GDF Suez, fell after announcing that it is to expand the Jirau Hydro project, the largest hydro power project currently under construction in the world.

THE FTSE 100 at 12:00                         Down 116 @ 5215     THE DOW JONES closed                          Up      4      @       11410                        NASDAQ COM closed                             Down      11      @       2511                                Commodities Spot Gold $/Oz           $1806 Brent Crude Oil          $109.67 September Delivery    Exchange Rates GBP – USD           1.6491 GBP - EURO          1.1481