RAMSEY CROOKALL & CO

MORNING REPORT

2 SEPTEMBER 2010

Shares are slightly lower in early dealings as traders pause for breath following yesterday’s strong gains.

In company news, AstraZeneca has received approval from the European Commission (EC) for its schizophrenia and bipolar drug Seroquel XR as an add-on treatment for major depressive episodes where antidepressants haven’t worked.

Tullow Oil is to buy a half-share in five licences in the East African rift basins of Kenya and Ethiopia. Africa Oil Corp has sold Tullow 50% stakes in blocks 10BB, 10A, 12A and 13T in Kenya and the South Omo block in Ethiopia, an area covering 97,000 square kilometres.

And Xstrata Zinc’s proposed acquisition of Toronto-listed Noranda Income Fund has fallen through after the pair were unable to agree a price. Madrid-based Xstrata Zinc had increased its offer for the fund to C$3.90 for every priority unit, worth $146.3m (£90.2m), up from an initial offer of $3.40, or $127.5m.

Investors have an appetite for Restaurant Group. The company, which operates the Chiquito and Frankie and Benny’s chains mostly seen in out of town shopping centres and cinemas, posted a rise in profits and revenues in the 27 weeks to 4 July despite tough economic conditions. It saw adjusted pre-tax profits rise to £24.6m from £21.7m over a comparable period the previous year as revenues rose to £229m from £210m.

Global recruitment firm Hays is another strong performer. It saw a return to growth in the second half of its financial year, which softened the blow of a 53% slide in pre-tax profits. Profit before tax and exceptional items in the year to 30 June tumbled to £71.1m from £151m the year before, beating market expectations. Broker Charles Stanley’s above consensus forecast had been for a figure of £70m.

And finally, DSG International, soon to become Dixons Retail, bumped up both total group revenue and like for like sales by 3% in the first quarter as shoppers responded well to Apple'siPad and the electrical retailer's World Cup promotion. The Curry's and PC World owner grew like for like sales by 6% in the UK & Ireland during the 12 weeks ended 24 July. Televisions were in demand in the run up to July’s premier football tournament.

THE FTSE 100 AT 10.00 IS DOWN 1 @ 5365

THE DOW JONES CLOSED UP 254 @ 10,269

THE NASDAQ COMP CLOSED UP 62 @ 2176

Exchange Rates

GBP – USD 1. 54

GBP – EUR 1. 20