RAMSEY CROOKALL & CO

EVENING REPORT

30 JULY 2010

The FTSE hit new lows in the aftermath of disappointing US gross domestic product for the second quarter. Inflation adjusted and gross domestic product rose at an annualised rate of 2.4% in the second quarter, a significant slow down from the 3.7% annualised gain in the first quarter.

Investors turned to utilities after EDF sold its electricity grid operation to a consortium headed by Hong Kong billionaire Li Ka-Shing for ?5.8 billion. United Utilities rose 24p to 585p.

Ash clouds from Iceland and strike action cause losses to grow at British Airways during a tough first quarter, although the airline still expects to break even for the year. The shares are up 3p at 218p.

Losses before tax jumped to ?164 million in the three months ended 30 June from ?148 million a year ago as revenue fell by ?46 million, or 2.3%, to ?1.94 billion.

Anglo American’s interim results came in slightly below analyst forecasts but the mining giant said it remains confident about its prospects. The group also announced that it reinstated its dividend payments with an interim dividend of 25c per share.

Rentokil is to merge its pest control and washrooms businesses to cope with ‘increasing price pressures’, especially in Europe. Profits in the half year to June rose from ?8.2 million to ?30.9 million.

Paper and packaging group Mondi confirmed underlying operating profit for the first half of 2010 will be considerably higher than last year. The shares closed up 3p at 450p.



THE  FTSE  CLOSED DOWN    42    @     5271 THE DOW JONES AT 4.30 IS         DOWN 16     @     10,450

THE NASDAQ COMP  AT 4.30 IS        UP      1    @    2252

Exchange Rates

GBP – USD                                 1. 569

GBP – EUR                                 1. 203