RAMSEY CROOKALL

16th  August     Morning Report

The FTSE 100 is edging lower as weaker than expected German GDP figures renewed concerns about a slowdown in global growth. Meanwhile, economic data from the UK shows inflation increasing again in July, forcing BOE's Governor Mervyn King to write another letter to the Treasury explaining why inflation remains so far above the central bank's 2.0% target.

Randgold Resources has defied it s peers by rising today, tracking the price of gold higher. However, sector peers Kazakhmys, Xstrata and Vedanta Resources are out of favour.

Engineers GKN, IMI and Weir Group also fell lower in early trading.

Resolution, the UK insurance buyout firm founded by Clive Cowdery, dipped into the red despite saying that it is on target to achieving its restructuring strategy as operating profits more than doubled in the six months ended 30 June.

The Thomas Cook Group, the Co-operative Group and the Midlands Co-operative are to merge after the Competition Commission gave the go-ahead for the deal. Thomas Cook was among the fallers on the FTSE 250.

Water group Pennon fell despite saying that trading has been in line with management expectations since March 31.

THE FTSE 100 at 10:40                Down            36      @       5313

THE DOW JONES closed                 Up         213 @ 11482

THE NASDAQ closed Up 47      @       2555                               Commodities Spot Gold $/Oz           $1778 Brent Crude Oil          $108.70 September Delivery    Exchange Rates GBP – USD           1.6376 GBP - EURO         1.1370