RAMSEY CROOKALL & CO
EVENING REPORT
1 DECEMBER 2010
Talk that the European Central Bank may take more measures to deal with the debt crisis has
buoyed European markets, with banks bouncing back more than most.
Back in the UK, activity in the manufacturing sector hit levels not seen in 16 years last
month, far exceeding analysts’ expectations. The Markit/Chartered Institute of Purchasing
and Supply (CIPS) manufacturing index jumped to 58 in November from 55.4 in October.
In company news, Prudential is going strong after chief executive Tidjane Thiam made Asia
the cornerstone of a plan to drive the life insurance group's profits strongly forward over
the next two years. Thiam, who failed to conclude a deal to buy the Asian business of US
firm AIG earlier in the year, has projected the Pru's Asian arm will double its 2009 pre-tax
operating profit of £465m by 2013. Cash is also expected to roll in.
Elsewhere, miners such as Fresnillo, Kazakhmys and Xstrata were sharply higher on the up
after strong manufacturing data from China. Rio Tinto is also wanted after it approved a
further $1.2bn investment to lift annual iron ore production capacity in Western Australia's
Pilbara region to 283m tonnes per annum. Their gains were, however, overshadowed in many
cases by the banks where Royal Bank of Scotland, Barclays and Lloyds are the pick of the bunch.
The latter has poached two more top executives from Spanish rival Santander. Horta-Osório, who
takes over as Lloyds chief executive next March, has appointed Juan Colombas as chief risk
officer and Antonio Lorenzo as head of wealth management and international.
Engine maker Rolls-Royce has bagged another big contract, this time a $420m deal with Hawaiian
Airlines.
Finally, bank note printer De La Rue is on the way to earning itself the description of
“recovery stock” as it tops the list of FTSE 250 risers, adding to the strong gains made yesterday.
The stock was trading below 560p on Monday but is now well above 600p, with some rumour-mongers
suggesting the crisis torn firm could be a good takeover target for Melrose, the conglomerate
that specialises in reviving underperforming companies.
THE FTSE 100 CLOSED UP 114 @ 5642
THE DOW JONES AT 4.30 IS UP 193 @ 11,199
THE NASDAQ COMP AT 4.30 IS UP 50 @ 2548
Exchange Rates
GBP – USD 1.55
GBP – EUR 1.19
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