RAMSEY CROOKALL

19th July

Morning Report

The FTSE 100 is up 0.5%, off highs as concerns about the likely outcome of a meeting of euro-zone leaders scheduled for Thursday keeps a lid on gains. Banking stocks, however, continue to lead the advance after Monday's sell-off, Barclays +4.2%, Royal Bank of Scotland +1.9%. Johnson Matthey is up 2.5% after a strong trading update.

International Consolidated Airlines Group is up 2% as Morgan Stanley names it as top sector pick. Looking ahead, Germany's ZEW survey is to be announced this morning. Sales and profits at Johnson Matthey, a top riser in the FTSE 100 today, both registered double-digit percentage gains in the first quarter of the platinum refiner's fiscal year.

London-based pub group Capital Pub Company has fallen into the arms of rival pub group Greene King, which has agreed to pay 235p a share for Capital. The agreed offer, which values Capital Pub at about £70m, is substantially ahead of the 200p rival London pubs group Fuller’s was willing to stump up for the operator of more than 30 pubs in the London area.

Real estate investment trust Land Securities said the outlook for development in London remains attractive while even the battered retail sector has its bright spots. "Retail demand has meant we have over the last few months also begun to step up our activity in retail development predominantly in edge of town locations and we now have a £275m, 1m square feet, pipeline of opportunities to meet the growing demand from food and fashion retailers for space," said Francis Salway, chief executive of Land Securities.

IG Group’s full year results have come in a shade of expectations, with the spread- betting company continuing to bag new clients in spite of tough economic conditions. In the year to 30 May, adjusted pre-tax profits came in £163m, up by 3.4% from the previous year, ahead of IG’s previous prediction of a 3% rise.

THE FTSE 100 at 9:45                    Up          27       @      5786

THE DOW JONES closed                    Down         94      @      12385                             NASDAQ COMP closed                      Down         24      @      2765                                  Exchange Rates GBP – USD           1.6133 GBP - EURO          1.1374