RAMSEY CROOKALL & CO

MIDDAY REPORT

1 NOVEMBER 2010

High demand for banks and miners got the week off to a good start, offsetting weakness in the outsourcing sector.

Banks are going well as trading updates loom. Lloyds Banking Group is getting ready for tomorrow’s statement with a 2% jump, while Royal Bank of Scotland and HSBC are also making up ground ahead of Friday’s releases.

Miners are also making the difference today. Rising metal prices have lifted Kazakhmys, Xstrata, Fresnillo, Lonmin, ENRC, Rio Tinto and Randgold onto the blue chip leader board.

Elsewhere, Smiths Group is higher on hopes the latest Al Qaeda bomb threat will increase demand for its cargo-scanning equipment.

Falkland Islands oil explorer Desire Petroleum has failed to reach target depths in the first wireline logging run at its 14/15-1Z sidetrack well on the Rachel prospect.

Finally, BG Group, the oil and gas giant due to declare third quarter results this week, is to get cracking on its Queensland Curtis Liquefied Natural Gas (QCLNG) project after receiving government clearance.

THE FTSE 100 AT NOON IS UP 1 @ 5676

THE DOW JONES CLOSED UP 4 @ 11,118

THE NASDAQ COMP CLOSED UP 1 @ 2507

Exchange Rates

GBP – USD 1. 6055

GBP – EUR 1. 1526

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