RAMSEY CROOKALL & CO

EVENING REPORT

29 JULY 2010

The stream of positive second quarter company updates has picked up pace today giving traders plenty to ponder.

Astrazeneca shares are up 86p at ?32.89. The group’s potential blockbuster heart drug Brilinta has received the backing of a US advisory panel just as the drug giant increased 2010 earnings targets for the second time this year following a strong performance from emerging markets and key drugs in the second quarter.

Shares in Reed Elsevier are up 20p at ?5.52 after it said advertising and promotional markets are stabilising as underlying revenues increased 1% in the first half.

Royal Dutch Shell has trumped forecasts by almost doubling earnings in the second quarter and has exceeded targets set last year for costs and staff cuts. Earnings on a current cost of supplies basis came in at $4.5 billion up from $2.3 billion a year ago.

BT reported a 17% rise in pre tax profits in the first quarter and reiterated its full year outlook. The firm also said it is in talks with the government over plans to cut public spending.

Shares in defence firm BAE Systems rose 3p to 320p as the company continues to expect revenue growth in 2010 despite the threat of cutbacks in government spending. The company saw sales grow 9% in the first half of 2010.

British Sky Broadcasting posted slightly better than expected full year figures but warned that the economic outlook remains uncertain. Underlying operating profits were up by 10% in the 12 months ended 30 June to ?855 million.

Aero engines developer Rolls Royce fell 2p to 585p but expects 2010 profit to be modestly higher than 2009 after a ‘robust performance’ in the first half of the year. First half profit was ?594 million.

THE  FTSE  CLOSED DOWN    5    @     5313 THE DOW JONES AT 4.30 IS     DOWN 60      @     10,437

THE NASDAQ COMP  AT 4.30 IS         DOWN       5    @    2254

Exchange Rates

GBP – USD                                 1. 5588

GBP – EUR                                 1. 1931