RAMSEY CROOKALL & CO

MORNING REPORT

22 SEPTEMBER 2010

Reports that the government is mulling a new bank windfall tax has unsettled share prices this morning.

Vince Cable, the Business Secretary, will say in a speech today that bankers present more of a threat to Britain than trade unions, adding that the corporate world is "murky" and that the capitalist system is tainted and "kills competition". Lloyds and Barclays are both lower this morning.

Miners are the strong sector led by gold specialists as the price of the metal hit a record of $1,280 per troy ounce. African Barrick and Randgold are the best performers.

Imperial Tobacco is still on track to meet forecasts for the year, though growth in tobacco revenues has slowed slightly over the last six months. Tobacco net revenues are expected to be up around 3% in the year to 30 September compared with a 4% gain to £3.4bn for the six months to 31 March. The shares have moved 27pence higher to 1920p.

Elsewhere, Moir Lockhead, the veteran chief executive of FirstGroup, is to retire next March after twenty one years in charge of the bus and train group. His replacement will be his current deputy Tim O'Toole, previously the managing director of London Underground.

Bid target Dana Petroleum has received the go-ahead from the Dutch authorities for its 50% owned Medway integrated oil and gas development. First production from Medway is expected in the fourth quarter of 2011.

And finally, Redhall has agreed to buy Mount Engineering for 70p per share, valuing the oil and gas valve maker at £16m. Redhall said the purchase will boost in its international presence in the oil and gas market and strengthen its specialist manufacturing capability, especially in high hazard markets.

THE FTSE AT 10.00 IS DOWN 37 @ 5538

THE DOW JONES CLOSED AT DOWN 18 @ 10,735

THE NASDAQ COMP CLOSED AT DOWN 3 @ 2352



Exchange Rates

GBP – USD 1.565 GBP – EUR 1.175