RAMSEY CROOKALL & CO MORNING REPORT

14 SEPTEMBER 2010

The FTSE 100 has moved lower this morning following UK inflation data that came in above forecast.

In company news, Rio Tinto is spending $803m ramping up the block cave project at its Argyle diamond mine in Western Australia to take advantage of strong demand in emerging markets. The shares are trading 14p higher in early dealings.

And Bus and train group National Express has been given a seven month extension on its East Anglia rail franchise.

Elsewhere, Department store Debenhams sounded a cautious note on consumer confidence but expects its strategy of lifting margins by selling more of its own label products to result in strong profits. The company saw flat like-for-like sales in the year to 28 August, with a recovery in the last 10 weeks making up for a 1.5% fall throughout the earlier part of the year. Debenhams shares are slightly higher.

And, Telecoms firm Cable&Wireless Worldwide has convinced the government to spend £82m on a five and a half year global telecoms framework contract. The largely UK focused part of the old Cable & Wireless, split off in March, believes the deal with the Foreign & Commonwealth Office (FCO), which also includes a suite of IP services, will pave the way for similar contracts with other government departments.

Finally, Ultra-trendy fashion chain SuperGroup's sales jumped by nearly 60% in the three months to August, as the group expanded both in the UK and abroad. The shares are 3% easier on profit taking.

THE FTSE 100 AT 10.00 IS DOWN 1 @ 5563

THE DOW JONES CLOSED UP 81 @ 10,554

THE NASDAQ COMP CLOSED UP 43 @ 2285

Exchange Rates

GBP – USD 1. 5437 GBP – EUR 1. 1968