RAMSEY CROOKALL & CO MORNING REPORT

13 SEPTEMBER 2010

Blue chips have moved higher first thing, extending last week’s three-day winning streak to a fourth session following Basle III and bullish data out of China.

Markets in the Far East surged following news that Chinese industrial production jumped a better than expected 13.9% year on year in August, calming fears about the global slowdown.

Meanwhile, a less stringent than feared Basle III decision by the European banking body has got financials moving higher. Royal Bank of Scotland and Lloyds are both in demand.

And 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. The shares have responded with a 20p rise to 620p.

In other news AB Foods is 36p lower at £10.52. The company has said that 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.

Elsewhere, 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.

Soap maker PZ Cussons said it remains cautiously optimistic for the full year despite uncertainty about the global economic outlook and difficult trading conditions in some markets.

Finally, Bluetooth chip specialist CSR is using its cash pile of more than $400m (£260m) to buy back as much as $50m (£32m) of shares. Bosses said they are “very confident” in the company’s investment case and ability to generate shareholder value and the shares have risen 9% to 343p.

THE FTSE 100 AT 10.00 IS UP 56 @ 5557

THE DOW JONES CLOSED UP 47 @ 10,462

THE NASDAQ COMP CLOSED UP 6 @ 2242

Exchange Rates

GBP – USD 1. 547 GBP – EUR 1. 2077