RAMSEY CROOKALL & CO

MORNING REPORT

2 DECEMBER 2010

Shares have got off to a good start as traders continue to hope for action on the eurozone debt crisis.

TUI Travel moves ahead after it increased underlying pre-tax profit by 4% to £337m during the year to September, but the UK proved a drag and is only just coming back, with positive trends continuing into winter 2010/11 and next summer. Revenue fell 2% to £13.5bn. The increase in profit was driven by integration synergies, the recovery of scheduled flying losses in Germany and the strategic venture in Canada, partially offset by weaker trading. TUI’s peer Thomas Cook is in demand after falling yesterday on the back of its numbers.

Soft drinks group Britvic has gone a bit flat even though full-year profits were higher as sales continued fizzing in spite of subdued economic conditions. The company, which sells its own brand of juice and distributes Pepsi in Britain, posted a pre-tax profit of £109.1m in the 53 weeks to October 3, up from £104.6m the previous year. Revenues, excluding the impact of the acquisition of Britvic France in May, were up to £1,138.6m from £1,121.1m.

Telecoms firm Cable & Wireless Communications (CWC) is set to acquire a controlling interest in the Bahamas Telecommunications Company (BTC). CWC will buy a 51% interest in the government- owned BTC, subject to necessary consents and other regulatory clearances, for $210m. BTC is being acquired with $15m of net cash on the books.

Finally, Desire Petroleum has 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 shale with hydrocarbons, of which 57 metres is net pay in multiple zones.

THE FTSE 100 AT 9. 30 IS UP 42 @ 5685

THE DOW JONES CLOSED UP 249 @ 11,255

THE NASDAQ COMP CLOSED UP 51 @ 2549

Exchange Rates

GBP – USD 1.56 GBP – EUR 1.18