RAMSEY CROOKALL

2nd  August

Afternoon Report

The FTSE 100 is down 0.6%, still weak but off earlier lows with banks putting in a decent performance as investors positively respond to Barclays' 1H earnings, a day after cheering HSBC's market beating results. Barclays is up 2.2% and HSBC up1.6%, Across the index however, industrial, mining and building material stocks decline as global growth fears dent sentiment after weak global manufacturing PMI's out Monday. Next up, US personal income and spending data announced later this afternoon. Barclays is in demand today even though it saw income and profits fall in the half year to 30 June after the “lacklustre” economic environment hurt income generation in many of the bank’s major markets. Pre-tax profits for the period fell to £2.64m from £3.94m over the same period the previous year on total income that slipped to £15.24m from £15.73m.

Fellow banks HSBC, which reported yesterday, Lloyds, due to update on Thursday, RBS (Friday) and Standard Chartered are also in demand.

Miners are under the pressure  though, notably Xstrata, whose profits soared in the half year to 30 June as continuing growth in emerging Asian economies and the recovery in the West boosted commodity prices. Operating EBITDA (earnings before interest, tax, depreciation and amortisation) rose to $5.82bn from $4.49bn over the same period the previous year on revenues that rose to $16.77bn from $13.6bn.

Soaring precious metals prices boosted profits at Mexican silver and gold miner Fresnillo in the six months to 30 June. Total revenue rose to $1.056bn (£644.5m) from $605.7m the previous year, while earnings before interest, depreciation and amortisation (EBITDA) rose to $757m from $394.3m. But it too is in the red.

THE FTSE 100 at 12:00                     Down       34       @       5740

THE DOW JONES closed                      Down        10       @       12132                           NASDAQ COM closed                         Down        11      @        2744                                     

Exchange Rates

GBP – USD           1.6277 GBP - EURO          1.1470