RAMSEY CROOKALL & CO

EVENING REPORT

3 DECEMBER 2010

Jobs growth slowed sharply in the US in November and unemployment unexpectedly rose, which was not the result the market had hoped for. The data sent shares on this side of the pond into a dive, and pushed Footsie into the red.

Non-farm payrolls increased by 39,000 during the month, down from a revised increase of 172,000 in October and well short of expectations that about 150,000 new jobs would be created.

Elsewhere, in company news here, mining giant Rio Tinto is to be the junior partner in a joint venture (JV) with Chinalco. The new company has been formed to explore mainland China for world-class mineral deposits. Rio Tinto will own 49% of the JV and will appoint the chief executive of the new company. Rio closed up at £44.16.

An engine oil leak caused the explosion on a Qantas A380 super-jumbo that forced it into an emergency landing in Singapore, safety investigators in Australia have concluded. The Australian Transport Safety Bureau (ATSB) said oil leaked into a hot part of the engine and started a fire that eventually caused a turbine disc to fly apart. Rolls Royce closed up at 627p.

Premier Foods admitted today it has received bids for its meat-free business from multinational food groups and private equity firms. There has been speculation that Nestlé is to buy the unit.

Finally, Lord Ashcroft, the controversial former deputy chairman of the Conservative party, is in talks to sell his stake in Watford Leisure, parent company of Watford Football Club. His company Fordwat is the club's largest shareholder with just over 37% of the Championship outfit.

THE FTSE 100 CLOSED DOWN 22 @ 5745

THE DOW JONES AT 4.30 IS DOWN 20 @ 11,341

THE NASDAQ COMP AT 4.30 DOWN 2 @ 2183

Exchange Rates

GBP – USD 1.55 GBP – EUR 1.16