RAMSEY CROOKALL & CO

EVENING REPORT

11 AUGUST 2010

A poor reception for updates from the holiday-related stocks TUI Travel and InterContinental Hotels helped ensure the Footsie closed in the red, while economic worries also weighed on sentiment.

China’s trade surplus hit an 18-month high as exports surged and imports slowed. Imports increased 22.7% in July, but that was down from June’s 34.1% gain, raising concerns that economic activity in the world’s third largest economy is easing.

The news hit miners hardest, with Vedanta, Xstrata and Kazakhmys leading the mining sector lower.

Closer to home, TUI Travel warned profits this year will be at the low end of forecasts after UK bookings faltered. Bookings by Britons are down by 2% over the past 12 weeks with the Netherlands down by 3%. This later booking trend, blamed on good weather in UK and the impact of the emergency Budget, has adversely affected profitability, TUI added. Rival Thomas Cook is down in sympathy.

International Power drifted after it finally unveiled the merger with parts of French electricity giant GDF Suez Energy International. The proposed combination will be effected through a reverse takeover of some of GDF's businesses leaving IPR shareholders with a 30% stake.

Bakery and sandwich chain Greggs delivered a 2.9% rise in half year sales and said despite the recent surge in wheat prices it remains confident for the full year. Pre-tax profit rose to £18.6m in the 26 weeks to 3 July from £16.5m the same time a year earlier.

Services, maintenance and building group Interserve reported an expected drop in half-year profits but is confident the second half will show a significant uplift.

Housebuilders are under pressure after the latest survey from trade body RICS showed surveyors are seeing house prices fall for the first time since July 2009. Few buyers and a rush of new properties onto the market are blamed. Persimmon, Tayor Wimpey, Bellway and Bovis are all under pressure.

The UK's biggest car dealer Pendragon almost tripled interim pre-tax profit as demand at its aftersales and used car operations steps up a gear.

THE FTSE CLOSED DOWN 131 @ 5245

THE DOW JONES AT 16.30 IS DOWN 244 @ 10,419

THE NASDAQ COMP AT 16.30 IS DOWN 4 @ 2222

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