RAMSEY CROOKALL & CO

03 May 2011 Afternoon Report

The FTSE 100 is down 0.25%, off earlier gains following UK PMI data which showed that the manufacturing sector lost momentum in April. The outcome is the lowest level in 7 months and nearly 6 points lower than the record high of 61.5 seen in January.

Catering giant Compass has added to its overseas operations with the acquisition of a food service business in Sweden. It will pay 16m (£1.6m) SEK for BGP Resurs, which is based in northern Sweden and serves the business, industry and leisure sectors.

Mining titan BHP Billiton said Brazilian mining company, Vale, its partner in the Samarco project, has approved the $3.5bn expansion plan for the joint venture. The expansion will increase Samarco iron ore pellet production capacity by 8.3m tonnes to 30.5m tonnes per annum. First pellet production is expected in the first half of calendar year 2014.

Mining giant Rio Tinto signaled the end of its protracted takeover bid for Riversdale by announcing that the Australian coal miner would be delisted from the Australian Stock Exchange. Rio Tinto, which controls more than 73% of Riversdale's shares after a bid battle stretching back to Christmas 2010, has taken control of Riversdale's nine-person board

THE FTSE 100 at 12:00        Down 14 @ 6055

THE DOW JONES Closed Down 3 @    12807

THE NASDAQ COMP Closed Down 9 @     2864

Exchange Rates

GBP – USD           1.6478 GBP - EURO         1.1154