RAMSEY CROOKALL & CO

EVENING REPORT

3 SEPTEMBER 2010

Dealing rooms across the City strapped on their buying boots ahead of the weekend following a much smaller than expected fall in US nonfarm payrolls.

The number of Americans who lost their jobs in August was 54,000 compared with predictions of over 100,000. The payrolls count in both the previous two months was also revised higher, exciting another round of interest in equities.

All this has moved the FTSE 100 way above 5,400 to its best closing levels since May 13th.

Elsewhere, BP’s bill for cleaning up after the oil spill in the Gulf of Mexico has hit $8bn (£5.2bn), up over £1bn in less than a month, and the relief well is not expected to intercept the broken MC252 well for a couple of weeks. BP shares have closed 9p higher at 402p.

Fears that BHP Billiton might end up in a bidding war in its pursuit of Canadian fertiliser firm Potash receded a little after Canadian pension fund Alberta Investment Management spurned an approach from Chinese investors keen to launch a counterbid to BHP’s $40bn (£26bn) offer. Billiton shares have responded with a 35p gain.

In other corporate news it’s been a tough six months for banana importer Fyffes but conditions have “normalised” over the summer months and the group remains on target to meet forecasts, though profits are well down on last year.

And sports and leisure equipment firm Tandem said it expects full year results to be well ahead of market expectations and will pay an interim dividend. Revenue from its Dawes cycle business showed exceptional growth, well ahead of market performance, and the shares closed 10p higher at 129p.

THE FTSE 100 CLOSED UP 57 @ 5428

THE DOW JONES AT 4.30 IS UP 68 @ 10,389

THE NASDAQ COMP AT 4.30 IS UP 19 @ 2219

Exchange Rates

GBP – USD 1. 544 GBP – EUR 1. 2