RAMSEY CROOKALL & CO

MORNING REPORT

30 JULY 2010

London’s top stocks have opened lower with the focus on the latest earnings reports and GDP data due out in the US later today.

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 6p at 221?p.

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.

Utilities are also going well after EDF sold its electricity grid operation to a consortium headed by Hong Kong billionaire Li Ka-Shing for ?5.8 billion. Severn Trent, National Grid and United Utilities are all ahead.

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  FTSE  AT 10.00 IS DOWN    22    @     5291 THE DOW JONES CLOSED         DOWN 30     @     10,467

THE NASDAQ COMP  CLOSED         DOWN       12     @    2251

Exchange Rates

GBP – USD                                 1. 5621

GBP – EUR                                 1. 1983