RAMSEY CROOKALL & CO

MORNING REPORT

23RD NOVEMBER 2010 Renewed hostilities between North and South Korea and fears that the euro-crisis will spread beyond Ireland have made for a poor start on markets across Europe.

Banks and miners are bearing the brunt of the selling so far this morning. Vedanta, Kazakhmys and Antofagasta are the worst of the miners but the whole sector is weak.

Standard Chartered has been knocked by the Korean situation, but Lloyds and Barclays are not faring much better due to worries over Irish exposure.

Mitchells & Butlers' debt reduction programme has cut the pub group’s interest bill, helping boost full-year profit by 26%. The All Bar One and Harvester owner reported profit before tax and exceptional items up to £169m for the year ended 25 September from £134m a year ago. Revenue rose 1.1% to £1.98bn.

Water Group Severn Trent posted a fall in profits in the six months to 30 September despite higher revenues, after facing a number of charges. The company, which serves 8m customers across England and Wales, said pre-tax profits fell to £101.1m from £208.2m the previous year on turnover that rose to £867.9m from £852.1m.

De La Rue’s underlying interim profits tumbled after the well-flagged problems at one of its paper production sites. That cost it £35m and the resignation of chief executive James Hussey. The firm says demand for banknotes was also weak generally in the past six months with revenues falling from £252m to £209m. Underlying profits fell from £48m to £23.8m including the £35m charge, which was in line with previous estimates.

Electrical component maker Laird is acquiring Cattron Group, which makes remote controls for cranes, agricultural machinery and other equipment, for $90m (£56.5m). The acquisition will allow Laird to expand its wireless ‘machine-to-machine’ offering while providing technology, product development and revenue synergies, Laird said.

THE FTSE 100 AT 9.45 AM IS DOWN 32 @ 5647 THE DOW JONES CLOSED DOWN 24 @ 11,178 THE NASDAQ COMP CLOSED UP 13 @ 2532

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