RAMSEY CROOKALL & CO

17th May 2011 Morning Report

The FTSE 100 is flat with mining stocks on the back foot amid weaker base metals prices. Ongoing worries about Europe's debt situation weigh on sentiment, with the focus on the outcome of the two-day EU Ecofin meeting in Brussels.

UK inflation is back on the rise, with official figures reporting the consumer price index (CPI) at 4.5%. The news comes after CPI for March surprisingly fell 0.4% to 4%.

Strong growth in emerging markets and the increasing popularity of smartphones helped the mobile telecommunications giant Vodafone post higher revenues and profits in the year to 31 March. Adjusted pre-tax profits rose to £11bn from £10.6bn on revenues that were up to £45.9bn from £44.5bn.

Insurance giant Aviva highlighted the performance of its UK general insurance sales, which topped the billion pounds mark, as it made a solid start to the year. Net written premiums in the first quarter of 2011 were up 9% on the corresponding quarter and up 14% on the preceding quarter at £2.69bn.

BP has confirmed reports that Russian state-controlled oil company Rosneft has opted not to extend the deadline for a share swap transaction but the oil giant said it remains committed to Russia.

THE FTSE 100 at 10.50         Up 5 @ 5929

THE DOW JONES closed Down 477 @  12548

THE NASDAQ COMP closed Down 46 @   2782

Exchange Rates

GBP – USD           1.6270 GBP - EURO         1.1452