RAMSEY CROOKALL & CO

MIDDAY REPORT 14TH DECEMBER 2010

A dull start for the FTSE 100 was predicted and that's how it has turned out with the weak ending on Wall Street keeping buyers quiet.

The Dow Jones had been trading near two-year highs when London closed, but ended with a lead of just 18 points. Traders may possibly be waiting for some important economic release this morning including UK, CPI and the FED Open Market Committees next rateannouncement.

In UK company news, Go-Ahead, the company that operates the snow-affected Southeastern rail franchise, thinks it will make more money than expected in the first half, thanks mainly to its trains business.

The Newcastle based firm, which also operates the Southern and London Midland rail franchises through its majority owned subsidiary Govia, said overall trading has been “good”.

Elsewhere, another booming quarter for its coffee chain Costa helped Whitbread lift sales by 13.6% over the past three months, with like-for-like revenue up 6.8%. The hotels and restaurants divisions also posted good numbers, but Costa is the star. Sales here in the 13 weeks to end November rose by 31% with like-for-like sales up 11%.

Underwriter Beazley has dropped its bid for rival Hardy after failing to agree on a price. Beazley says it submitted a final proposal to the board of Hardy on Monday outlining a possible offer of up to 350p per share with some conditions. "Hardy's advisers confirmed that the Hardy board would only be prepared to recommend a price substantially in excess of the final proposal and, as a result, Beazley today announces the withdrawal of its interest," its statement said.

Finally, Travis Perkins, the builders’ merchant buying plumbing supplies firm BSS for £½bn, grew turnover by 6.5% in the 11 months to 30 November, though snow has affected business this month. The owner of the Wickes DIY chain said it continues to gain like-for-like market share in both its merchanting and retail divisions.

THE FTSE 100 AT NOON IS UP 1 @ 5860

THE DOW JONES CLOSED UP 18 @ 11,428

THE NASDAQ COMP CLOSED DOWN 12 @ 2624

Exchange Rates

GBP – USD 1.59 GBP – EUR 1.17

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