RAMSEY CROOKALL & CO
EVENING REPORT
29 OCTOBER 2010
London finished in the red followed by a solid start on Wall Street after the first estimate of
third quarter GDP came in line with expectations. Figures showed the US economy grew at an annualised
rate of 2% in the third quarter.
British Airways ended the day 2% lower even though it swung to a profit in the first half as the
airline improved yields and cut costs. It made a pre-tax profit of £158m in the six months ended
30 September compared a loss of £292m a year ago. Revenue jumped 8% to £4.45bn due to improved yields.
Metal prices are on the wane today and as usual that means mark-downs for the mining shares. Xstrata
is the sector’s worst performer after its subsidiary, Xstrata Zinc, said its A$274m ($246m) expansion
of the George Fisher mine to grow the production rate by almost 30% from 2013 has been approved by
the Queensland Government.
Elsewhere in the sector Antofagasta, Rio Tinto and Anglo American are the next hardest hit after
Xstrata.
Finally oil company BP has received a lift from an official US commission report into the fatal
explosion at the Macondo well in the Gulf of Mexico, which said that US oilfield services contractor
Halliburton was culpable for the use of a sub-standard cement mixture on the well. The report did not
absolve BP, as owner of the well, of all blame relating to the use of the cement, but the verdict
suggests that BP alone will not be asked to carry the can for the Gulf of Mexico tragedy.
THE FTSE 100 AT CLOSED DOWN 2 @ 5675
THE DOW JONES AT 4.30 IS DOWN 2 @ 11,111
THE NASDAQ COMP AT 4.30 IS UP 2 @ 2510
Exchange Rates
GBP – USD 1. 6009
GBP – EUR 1. 1529
??
??
??
??
Friday 29th, October 2010 05:11pm.
