RAMSEY CROOKALL & CO

MIDDAY REPORT 4 OCTOBER 2010

Renewed interest in the insurance sector and strong miners nudged London into positive territory, but Monday morning blues soon kicked in and stocks are now in the red.

Reports in this morning’s papers reveal RSA, Resolution, Switzerland’s Zurich Financial Services and Germany’s Allianz discussed mounting a multibillion-pound break-up bid for Aviva. Its shares are among the early performers.

In mining, Antofagasta, Anglo American and Kazakhmys are up as metal prices improve again. The World Steel Association has also predicted that global steel demand will hit levels next year not seen since before the financial crisis.

However, the banks are weaker with Barclays an early faller. The economic think-tank, the New Economics Foundation (NEF), thinks we could be heading for another credit crunch, with taxpayers having to fill a £25bn-a-month funding gap.

Meanwhile, the market is preparing for chancellor George Osborn’s speech calling on Britain to back spending cuts on 20 October or face “crippling economic instability”.

Elsewhere, Hovis bread and Branston Pickle owner Premier Foods has confirmed reports in the weekend papers that offers have been made for its meat free business that includes Quorn.



THE FTSE AT 12.30 IS DOWN 1 @ 5591

THE DOW JONES CLOSED UP 41 @ 10,029

THE NASDAQ COMP CLOSED UP 2 @ 2370

Exchange Rates

GBP – USD 1. 58

GBP – EUR 1. 154



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