RAMSEY CROOKALL & CO

MORNING REPORT

1 DECEMBER 2010

London has shrugged off yesterday's dull showing on Wall Street and is posting decent gains in the first hour.

Prudential is leading the way 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.

Sage, the blue chip accountancy software firm, posted a 14% increase in full-year underlying pre-tax profit thanks to the cost-cutting drive, mostly in North America. Profit before tax, with foreign exchange impacts neutralised, for the year ended 30 September rose to £355.7m from £311.1m in 2009. It was up 5% excluding last year’s restructuring costs.

Elsewhere, miners Fresnillo, Kazakhmys and Xstrata are also on the up.

Holiday firm Thomas Cook is a faller even though winter bookings are going well after a year in which profits were blighted by the volcanic ash cloud in April. Adjusted underlying profit before tax in the year to 30 September was in line with market expectations at £277.0m, down 6.1% from £294.9m the year before.

Finally, state-owned lender The Royal Bank of Scotland Group has completed the sale of its Global Merchant Services business. The business has been sold to a consortium of Advent International and Bain Capital following regulatory and other approvals.

THE FTSE 100 AT 10.00 IS UP 58 @ 5587

THE DOW JONES CLOSED DOWN 46 @ 11,006

THE NASDAQ COMP AT 4.30 IS DOWN 26 @ 2498

Exchange Rates

GBP – USD 1.55 GBP – EUR 1.19