RAMSEY CROOKALL

3rd   August

Afternoon Report

The FTSE 100 trades down 0.78% , remaining in the red despite a positive surprise from the UK CIPS services PMI index, which comes in at 55.4 in July, from 53.9 in June. European sovereign debt woes and concerns about the US economy weigh, but stocks are off earlier lows. The Swiss National Bank moved to stem the franc's rise this morning. Cairn Energy is down 3.2% after a disappointing well update, but Rexam is up 5% following well-received 1H results. Attention will now turn to the US ADP Employment report announced early this afternoon.

Standard Chartered, the bank focused on emerging markets, was the high riser after it topped market expectations with record first half profits for the ninth successive year.

High street retailer Next edged lower after announcing that total sales rose 3.2% in the first half of the year, as strong growth in Directory offset a moderate decline in Retail.

Kazakhstan-focused miner Eurasian Natural Resources Corporation (ENRC) fell despite saying that production for the second quarter was at effective full capacity, with volumes in line with expectations.

A Carillion joint venture, Hospital Infrastructure Partners, has been selected as the preferred bidder to finance, design, build and provide facilities management and life-cycle maintenance services for the new replacement Oakville Hospital in Ontario. Carillion's shares fell over 2.5% lower.

Property listings web site Rightmove was higher after revenue in the first half of 2011 jumped 20% to £47m, from £39.2m.

International infrastructure group Balfour Beatty was out of favour despite bagging a street light contract from Northampton shire County Council worth £230m.

THE FTSE 100 at 12:00                Down             44          @       5674

THE DOW JONES closed                  Down             265         @       11866                          NASDAQ COM closed                     Down             75          @        2669                                      Exchange Rates

GBP – USD    1.6398      GBP - EURO         1.1448