RAMSEY CROOKALL & CO EVENING REPORT

13 SEPTEMBER 2010

The leading index finished firmly higher following a strong start on Wall Street, fuelled by new Basel III bank rules and impressive Chinese factory output.

London was up for the fourth session in a row and trading higher for the eleventh day out of twelve, up at a new four-month high. Stocks haven’t been this high since 30 April.

Banks are among the top risers after a less stringent than feared Basle III decision by the European banking body. Royal Bank of Scotland and Lloyds are both in demand.

Prudential is also going well on a weekend report that a group of Chinese investors is in the early stages of considering a takeover bid.

Miners are now the best performers in line with commodity prices, which were boosted by news that Chinese industrial production jumped a better than expected 13.9% year on year in August, calming fears about the global slowdown. Xstrata, Kazakhmys, Rio Tinto, Anglo American and Antofagasta are going well.

In other company news, BP believes the true cost of the Gulf of Mexico disaster could be less than the $20bn (£13bn) it has parked in an escrow account to cover claims from victims of the oil spill. Analysts at Citigroup, who met with Bob Dudley, due to take over from Tony Hayward as chief executive on October 1, report that the figure “probably exceeds calls”.

AB Foods is lower. It expects its underlying results this year to be well ahead of last time as retail business Primark continues to power ahead, while sugar profits have recovered, but it said inflation may be a concern next year for Primark.

BAE Systems has confirmed an auction for a chunk of its commercial aerospace business for as much as $2bn. JPMorgan Chase and Wells Fargo will advise on the potential disposal.

THE FTSE 100 CLOSED UP 63 @ 5565

THE DOW JONES AT 4.30 IS UP 85 @ 10,548

THE NASDAQ COMP AT 4.30 IS UP 39 @ 2281

Exchange Rates

GBP – USD 1. 5432 GBP – EUR 1. 1995