RAMSEY CROOKALL & CO
20th June 2011 Morning Report
The FTSE 100 index has started the week in decline, down 0.9% early Monday as
the Greek debt crisis continues to rumble on. Eurozone ministers have postponed
their decision on a €12bn (£10bn) loan to the indebted Mediterranean nation until
it passes more austerity measures. Banking stocks are at the bottom of the pile
after press reports suggesting that the UK banks have pulled billions of pounds
of funding from the euro-zone on fears over a Greek default. The Royal Bank of
Scotland is at the bottom of the pile, while insurers RSA and Standard Life are
out of favour. Xstrata leads the mining sector lower.
In stocks news, temporary power and temperature control provider Aggreko saw
acceleration in the rate of underlying growth in the second quarter. The group
now expects that revenue in constant currency and excluding pass-through fuel
in the first half of 2011 will be about 9% higher than in the corresponding
period of 2010.
Power systems colossus Rolls-Royce has bagged the contract to provide engines
for an enhanced version of the Airbus A350-1000 aircraft.
Packaging giant Rexam has agreed to sell its closures business for $360m
(£222m) as it seeks to pay back its debts. It is selling the business, which
is focused on the US market and employs about 1,500 people, to Evansville,
Indiana-based packaging group Berry Plastics.
Trendy sportswear retailer JD Sports Fashion has gained a foothold in Spain
with the acquisition of the businesses of Sprinter, a sports chain operating
in the south of the country.
UBM has acquired a 70% stake in the Catersource catering conference and
exhibition and its sister show Event Solutions. The business events organiser
and publisher is paying $5m for the stake, and will add the Catersource
business to its UBM Live division.
THE FTSE 100 AT 9.30 IS DOWN 59 @ 5656
THE DOW JONES Closed Up 42 @ 12,004
THE NASDAQ COMP Closed Unchanged @ 2616
Exchange Rates
GBP – USD 1.6147
GBP - EURO 1.1358
Monday 20th, June 2011 12:10pm.
