RAMSEY CROOKALL & CO

MIDDAY REPORT

11 AUGUST 2010

Leading equities moved further into the red over the lunch time session as investors remained concerned about slowing growth in the Chinese economy and signs closer to home that the Budget spending cuts are starting to have an effect on the mood of UK consumers.

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

International Power have 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.

Technology firm Smiths Group is the brightest stock among those blue-chips on the rise. The company is a perennial favourite among those looking for the next big takeover target and today UBS has suggested that the company might beat predators to the punch and break itself up.

Cairn Energy is higher on hopes the oil explorer will find something special from its planned drilling activity in Greenland.

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.

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 news has not done much for mortgage lender Paragon, either.

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.

Support services firm Cape has secured a contract valued in excess of £22.5m in Algeria.

THE FTSE AT 12.30 IS DOWN 81 @ 5293

THE DOW JONES CLOSED DOWN 64 @ 10,644

THE NASDAQ COMP CLOSED DOWN 28 @ 2277

Exchange Rates

GBP – USD 1. 57

GBP – EUR 1. 207