RAMSEY CROOKALL & CO

MIDDAY REPORT 19th January 2011

London made a flat start as investors mull over a stack of results and trading updates.

Publishing giant Pearson leads the pack after the FT owner said 2010 earnings will be ahead of previous guidance, as all of its major businesses sustained their strong trading momentum throughout last year. The firm expects full year operating profits to come in around 20% higher than 2009's level, at about £850m.

Bookmaker William Hill is another high flyer as it confirmed full-year results would be at the top end of expectations as strength in the online business and gaming machines during the fourth quarter made up for weather-hit sports fixtures.

Pub chain JD Wetherspoon grew like for like sales by more than expected during the second quarter despite the snow and predicts a “reasonable” outcome for the full year.

Elsewhere, property giant Land Securities reports good lettings across its London and Retail portfolios over the past three months. Voids in the like- for-like portfolio were down 5.7% in the quarter to December (5.9% in the previous three months).

Banks have been unsettled by comments from the head of the banking commission, Sir John Vickers. Sir John is expected to outline a range of ways in which the operations of the big “universal banks” could be overhauled and forced to ring fence their component parts, the FT reports. Barclays and RBS are lower.

THE FTSE 100 AT 13.00 IS DOWN 18 @ 6038

THE DOW JONES CLOSED UP 50 @ 11,837

THE NASDAQ COMP CLOSED UP 24 @ 2765

Exchange Rates

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