RAMSEY CROOKALL & CO

MORNING REPORT

15 OCTOBER 2010

The FTSE 100 has made an unconvincing start to the day but has just about reversed the weaker trend seen at the death yesterday.

Banks are going well and have recouped most of yesterday's losses. Barclays, Royal Bank of Scotland and Lloyds are all in demand this morning.

HSBC is ready to step away from its planned bid for Nedbank in South Africa, after a two-month period of exclusive talks with majority owner Old Mutual expires this weekend. Standard Chartered may step in.

Resolution, the insurance sector consolidator run by entrepreneur Clive Cowdery, is buying Bupa Health Assurance for £102m.

Reckitt Benckiser has been fined £10.2m for abuse of the dominant market position of its heartburn treatment Gaviscon in 2005.

Bus company Stagecoach is to re-enter the London market after acquiring the third largest bus operator in London. Stagecoach is paying £59.5m in cash for the bus business formerly owned by East London Bus Group, which is in administration. The acquisition is expected to modestly boost Stagecoach’s earnings in the first year of ownership.

Finally, Desire Petroleum's 14/15-1 well on the Rachel prospect in the North Falkland Basin, has reached a total depth of 2,877 metres, but initial wireline logging showed no oil or gas.

THE FTSE 100 AT 10.00 IS ` DOWN 7 @ 5719

THE DOW JONES CLOSED DOWN 1 @ 11,094

THE NASDAQ COMP CLOSED DOWN 5 @ 2435

Exchange Rates

GBP – USD 1. 6051

GBP – EUR 1. 1378 ??

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