RAMSEY CROOKALL & CO

MORNING REPORT 25 January 2011

Miners have pulled the FTSE 100 lower in early dealing despite the 100-point plus surge on Wall Street overnight.

Kazakhmys and Randgold are the worst affected, but the whole sector has run into a bout of profit taking.

BSkyB is higher even though the bid from NewsCorp seems no nearer a conclusion. Culture secretary Jeremy Hunt indicated he would refer it to the Competition Commission, but will wait until Rupert Murdoch's firm gives him some undertakings over the issues raised by Ofcom.

Water group Severn Trent said the recent bad weather in the UK reduced the level of activity in its capital expenditure programme. For the full year 2010/11, the group now expects capital expenditure to be in the range of £400m to £410m. Water consumption levels in the second half of the financial year should be on a par with the previous year.

Elsewhere, Friends Provident, the trading business of life insurance consolidator Resolution, has appointed Lloyds Banking man Andy Briggs as chief executive with current incumbent Trevor Matthews moving to a new post of vice chairman.

Entertainment One, owner of the Peppa Pig franchise, says UK licensing and merchandising retail sales for the kids’ television character hit a record £200m in 2010. Peppa was the highest selling pre-school toy license in Britain, knocking Thomas the Tank Engine off the top spot it had hogged for a number of years.

Finally, PZ Cussons, famous for its Imperial Leather soap, has delivered interim profits slightly ahead of forecasts and thinks the full-year will meet expectations despite soaring raw material costs.

THE FTSE 100 AT 9.30 IS DOWN 7 @ 5936

THE DOW JONES CLOSED UP 108 @ 11,980

THE NASDAQ COMP CLOSED UP 28 @ 2717 Exchange Rates

GBP – USD 1.58 GBP - EURO 1.16