RAMSEY CROOKALL & CO

MORNING REPORT

3 NOVEMBER 2010

Leading shares are mixed in London as traders get to grips with the implications of yesterday’s US mid-term election results as well as sitting on the sidelines ahead of the US Federal Reserves meeting to discuss monetary policy later today.

The Republicans took control of the House of Representatives, but not the Senate, raising the prospect of the next two years of President Obama’s tenure in the White House being even more confrontational than the last two years.

Later today the US Federal Reserve will make its announcement on whether to resume quantitative easing.

Next will raise its prices by 8% early next year due to soaring cotton prices, the high street fashion giant said this morning. Next shares head lower, taking fellow clothing retailer Marks & Spencer with them.

Elsewhere, insurer Standard Life enjoyed a 60% increase in net inflows during the first nine months of 2010, lifting assets under administration (AUA) by 13%. Net inflows increased to £7.2bn over the nine months ended 30 September from £4.5bn in 2009. That sent AUA up to £192.4bn from £170.1bn at the end of last year thanks to the strong net inflows, a stock market rally and a significant increase in fee business, up 14% at £157.7bn and £12.1bn better in the third quarter.

Finally, online gaming group 888 kept income steady in the last three months as a good performance in bingo offset sharp falls in its casino and poker income.

THE FTSE 100 AT 9.30 IS UP 3 @ 5760

THE DOW JONES CLOSED UP 64 @ 11,188 THE NASDAQ COMP CLOSED UP 28 @ 2533

Exchange Rates

GBP – USD 1. 6067

GBP – EUR 1. 145

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