RAMSEY CROOKALL & CO

EVENING REPORT

2 DECEMBER 2010

The UK & Irish operations of Kingfisher were a drag on sales growth in the third quarter, as the DIY retailer reported an 8.2% year on year increase in retail profits. Sales in UK & Ireland fell 3.8% and dropped 4.2% like for like. "We enter our fourth quarter in good shape,” said boss Ian Cheshire.

Drugs colossus Glaxo was a bit off colour after a federal advisory panel in the US said drugs currently being used to treat enlarged prostates weren’t suitable for use as treatments to prevent prostate cancer. That was a knock-back for Glaxo, which is seeking approval from the US Food and Drug Administration to market its Avodart drugs for that very purpose.

Barclays is getting rid of several hundred wealthy investment bankers following a big drop in revenues at its “casino” arm.

Elsewhere in banking there was tabloid anger at the FSA’s decision to exonerate Sir Fred Goodwin, the former chief executive of Royal Bank of Scotland, of accusations of fraud. Turns out “Fred the Shred” and fellow former senior executives of the fallen banking titan were just guilty of making “bad decisions”.

Desire Petroleum gushed ahead after saying it has found oil in the treacherous waters off the Falkland Islands, according to preliminary data collected from Rachel North exploration well 14/15-2. The well in the North Falkland Basin reached a total depth of 3,052 metres, and drilling data and other tests indicate the well encountered a 349 metre gross interval of sands and shales with hydrocarbons, of which 57 metres is net pay in multiple zones.

Finally, JJB Sports slumped after saying it is likely to breach its banking covenants as sales continue to fall short of expectations at the sports shop chain. Trading conditions have been “extremely challenging” since it last updated the market early last month and the company thinks this has been exacerbated by the current bad weather.

THE FTSE 100 CLOSED UP 125 @ 5767

THE DOW JONES CLOSED UP 99 @ 11,355

THE NASDAQ COMP CLOSED UP 24 @ 2574

Exchange Rates

GBP – USD 1.56 GBP – EUR 1.18