RAMSEY CROOKALL & CO
MIDDAY REPORT 11 MARCH 2011
FTSE 100 down, falling sharply into negative territory. The decline is far greater
than expected by spreadbetters, largely due to the devastating earthquake and tsunami
in Japan, with the FTSE 350 non-life insurance index down 1.6%. On the FTSE 250,
Lloyd's insurer Amlin is down 4.2%. Munich Re is down 4.5% in Europe. Meanwhile, the
negative sentiment continues regarding the geopolitical situation in North Africa
and the Middle East. Also, miners slip after a higher-than-expected inflation reading
from China.
Bus and train group FirstGroup remains on track to hit full-year to earnings and cash targets,
but warns it’s been a bumpy journey for the school bus business. The UK Bus division is
expected to deliver like-for-like (LFL) passenger revenue growth for the year of 1.4%,
while the UK Rail unit has performed above expectations, and is set to deliver LFL passenger
revenue growth of 5.1%.
Elsewhere, pub group JD Wetherspoon posted record interim sales but profits fell as a ‘pernicious
combination of increasing taxes and regulation’, higher costs and higher interest charges took
their toll. Pre-tax profits for the six months to 23 January fell 11% to £32.2m, in line with
market forecasts.
There is to be a new senior number cruncher at property giant British Land after finance
director Graham Roberts announced his intention to stand down from the board at the end of
June. Roberts spent nine years in the role. His replacement will be the deputy finance
director, Lucinda Bell.
Finally, no problems with recession for the rich and famous or their suppliers such as posh
handbag and accessory maker Mulberry, which now expects to beat market forecasts for the
current year.
THE FTSE 100 AT NOON IS DOWN 24 @ 5820
THE DOW JONES CLOSED DOWN 228 @ 11,984
THE NASDAQ COMP CLOSED DOWN 50 @ 2701
Exchange Rates
GBP – USD 1.6
GBP - EURO 1.16
Friday 11th, March 2011 12:11pm.
