RAMSEY CROOKALL & CO

14th June 2011

Morning Report

The FTSE 100 is up 0.5% , starting positively. Mining stocks lead the gains, following peers in Asia, as in line Chinese economic data ease inflation concerns. On the downside, big hitter Tesco is down 1.2% after a mixed reaction to its 1Q trading statement. The Office for National Statistics said U.K. inflation, as measured by the consumer prices index, stayed stable at 4.5% for the 12 months to May, and increased 0.2% on the previous month, in line with forecasts.

Supermarket giant Tesco is weaker after failing to return to sales growth in the UK. In the 13 weeks to 28 May, Tesco’s UK like-for-like sales excluding petrol and the impact of VAT were down by 0.1% from the same period the previous year, in line with analysts’ predictions, having contracted over the previous quarter. Total sales grew by 7% including petrol and VAT.

Another FTSE 100 giant, commodity trading giant Glencore, demonstrated the strength of the markets that propelled it straight into the FTSE 100 after its flotation, revealing a 39% rise in revenues over the first quarter in its first interim management statement as a listed company. However, Glencore is down 1.6%, after saying it's not interested in making a bid for Eurasian Natural Resources.

Drug giant GlaxoSmithKline has taken another step towards increasing its presence in emerging markets, with the acquisition of the remaining 51% interest in a joint venture established in China to develop ‘flu vaccines.

It paid Shenzhen Neptunus Interlong Bio-Technique £24m for the stake in the joint venture, which is called Shenzhen GSK-Neptunus Biologicals (GSKNB). Glaxo will become the sole owner of the JV after the agreement is approved by the Chinese authorities.

Oilfield services firm Wood Group has extended its contract with TAQA Bratani Limited, the energy company that is 51% owned by Abu Dhabi Water and Electricity Authority, for a further five years.

AIM-listed asset finance provider to small and medium enterprise (SMEs) 1pm moved up more than 25% after saying it will announce a return to profitability for the full year following improved trading.



THE FTSE 100 at 10:00 Up 27 @ 5800

THE DOW JONES closed Up 1 @ 11952

THE NASDAQ COMP closed Down 4 @ 2639



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