RAMSEY CROOKALL & CO

MIDDAY REPORT

18 OCTOBER 2010

London has made a cautious start to the day with miners weak though a burst of M&A has lifted the mood elsewhere.

Mining giants BHP Billiton and Rio Tinto have confirmed that their proposed $116bn Pilbara iron ore joint venture is dead in the water. The companies had agreed in December of last year to establish a production joint venture covering the entirety of both companies' Western Australian iron ore assets, but the hook-up has run into regulatory opposition, prompting the companies to abandon the idea.

Other miners are also in the doldrums following a mixed day's trading on Asia. Lonmin, Antofagasta and Vedanta are now the worst performers, though all in the sector are under pressure.

BP has sold its upstream businesses and associated interests in Venezuela and Vietnam to TNK-BP for a $1.8bn. TNK-BP, Russia's third largest oil company, is owned equally by BP and the AAR consortium, which is comprised of Alfa Group, Access Industries and Renova.

Finally, SABMiller, one of the world’s largest brewers, traded in line with expectations during its first half as slight volume growth, price increases and lower raw material costs offset a mixed performance in key markets.

` UP 11 @ 5714

THE DOW JONES CLOSED DOWN 31 @ 11,062

THE NASDAQ COMP CLOSED UP 33 @ 2468

Exchange Rates

GBP – USD 1. 5888

GBP – EUR 1. 1418 ??

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