RAMSEY CROOKALL

1st July

Morning Report

The FTSE 100 is up around 0.1% following the release of UK PMI manufacturing data. However, sterling slides as UK manufacturing slips to 51.5 in June from a revised 52.0 in May. The PMI index is nudging towards the 50-mark which is the tilting point between expansion and contraction. Next on the economic agenda is US University of Michigan figures later this afternoon. Commodity stocks have mostly edged down as oil and metal prices retreated. Shares in Royal Dutch Shell PLC have slipped 0.1%. Vodafone is down 0.5% after it announced plans to sell its entire 24.4% stake in Polish telecom operator Polkomtel to Spartan Capital Holdings SP for around 920 million euros ($1.34 billion). Pub group Greene King, which yesterday reported a big rise in profits but also reported volatile trading since the year end, sending the shares lower, has won back some losses. However, Hovis bread maker Premier Foods suffers more losses after yesterday’s profit warning.

Water and waste management group Northumbrian Water has confirmed that it received a proposal about an offer from the Hong Kong infrastructure group Cheung Kong. The statement comes after Cheung King said on Monday that it was in the initial stages of sizing up an offer for the north-east England-based utility. Astra-Zeneca, the FTSE-100 pharmaceuticals firm, has won approval to sell its drug Nexium in Japan. The drug helps in the treatment of acid related conditions, including peptic ulcer disease.

THE FTSE 100  at 9:50                             Up               7           @    5953 THE DOW JONES closed                              Up              152          @    12414 THE NASDAQ COMP closed                            Up              33           @    2773

Exchange Rates

GBP – USD           1.6014 GBP - EURO         1.1027