RAMSEY CROOKALL & CO MORNING REPORT

7 SEPTEMBER 2010

London’s seven-day run of gains is under threat as blue chips are struggling in the early exchanges.

Barclays is 10p lower after it confirmed Bob Diamond, head of its investment banking arm, Barclays Capital, will take over as chief executive when John Varley steps down at the end of March next year. Diamond, who’s been running the division since 1997 when it was BZW, becomes president and deputy group chief executive at the beginning of next month.

Tullow Oil is going well again up 21p after the vague bid talk yesterday that mentioned a £20 per share price. While British Airways is also in demand as investors seemingly approve chief Willie Walsh's world domination plan.

Costa Coffee and Premier Inns owner Whitbread said like for like (LFL) sales growth has accelerated since June. Year on year sales growth in the 24 weeks to 19 August was 7.9%, up from 7.6% in the 13 weeks to 3 June. The share are little changed at £15.11.

Good sales of food through its managed outlets are keeping pub operator and brewer Greene King on track. After 18 weeks to 5 September, like-for-like sales at Greene King Retail were up by 4.4% and sales at Scottish arm Belhaven 3.3% ahead. The shares are 5p easier at 425p.

Equipment rental group Ashtead trumped the market’s profit expectations handsomely in the first quarter of its financial year. Underlying profit before tax in the three months ended 31 July was £11.9m, up 35% (18% at constant exchange rates) from £8.8m in the company’s first quarter of 2009. That figure beat the most optimistic broker forecast of £7.4m and the shares trade marginally higher.

Finally struggling social housing maintenance group Connaught has asked that its shares be suspended as its financial situation becomes ever more precarious. It doesn’t think it will be able to prise additional funds from its lenders and, although it’s still talking to other parties, admits “the ability to provide an adequate solution to the funding issues the group faces has become increasingly uncertain”.

THE FTSE 100 AT 10.00 IS DOWN 31 @ 5407

THE DOW JONES WAS CLOSED FOR LABOR DAY

THE NASDAQ COMP WAS CLOSED FOR LABOR DAY

Exchange Rates

GBP – USD 1. 537 GBP – EUR 1. 204