RAMSEY CROOKALL & CO

MORNING REPORT 14 JULY 2010

The FTSE has made progress after a cautious start, though BP’s recent good run has come to an end while derivatives broker ICAP is lower after a cautious statement.

BP has delayed a pressure test on the newly installed well cap in the Gulf of Mexico while reports today said US politicians now want to look into the company’s activities in Libya.

Shares in derivatives giant ICAP fall 16p to 420p as it increased quarterly revenues by 8% and profits by 5%. Business, though, dropped off sharply in June after a bumper April and May when the sovereign debt crisis in Europe sparked a huge demand for currency and credit default derivatives.

Rio Tinto has warned investors to expect further volatility in commodity prices in fears of a double-dip recession and concerns about Chinese demand. In a second quarter update, chief executive Tom Albanese said operations are close to capacity and markets for most products are strong and the overall long term demand outlook is positive.

Pub group JD Wetherspoon fall 14p to 423p on news of a 1% rise in like for like sales in the 11 weeks to July 11 and said it is confident of a resilient future despite economic worries.

London Stock Exchange shares rise 15p to 620p. It’s decision to cut its dealing tariffs helped to increase market share in the core cash equities business, but meant a mixed performance overall in the last three months.

Barratt Develpoments’ underlying profits this year will beat expectations after the housebuilder increased prices by 18% and kept costs under control.



THE FTSE AT 10.15 IS DOWN 4 @ 5266

THE DOW JONES CLOSED UP 146 @ 10,363

THE NASDAQ COMP CLOSED UP 43 @ 2242

Exchange Rates

GBP – USD 1. 525

GBP – EUR 1. 200