RAMSEY CROOKALL & CO MORNING REPORT 29 JUNE 2010

The FTSE 100 has dropped below the 5,000 mark in early trading as investors react to falls in US and Asian markets overnight.

Astrazeneca has been suggested as a possible takeover company for a US company by Standard & Poor’s, along with BAE Systems and Balfour Beatty.

US companies are clearly interested in UK assets judging from Emerson’s 375p per share or ?1 billion bid for Chloride this morning. It trumps an agreed 325p offer from ABB by 15%.

Outsourcing specialist Serco remains on course to meet guidance given in May, although it gave no clue as to the possible impact of spending cuts announced in last week’s Budget. Financial guidance for 2010, is for continued strong organic revenue growth and further progress this year.

Bus and train group National Express expects first half pre tax profits to show good progress after trading was in line with forecasts through the second quarter. Revenue trends have been resilient, whilst progress on cost saving programmes and delivery of a stronger operational focus across the business has accelerated.

Shares in Carpetright are 9% lower at 642p even though revenues and profits both improved last year. Total group revenue in the 52 weeks to 1 May 2010 rose to ?516.6 million from ?482.8 million the year before.



THE FTSE 100 AT 9.50 IS DOWN 98 @ 4972

THE DOW JONES CLOSED DOWN 5 @ 10,138

THE NASDAQ CLOSED DOWN 2 @ 2220

Exchange Rates

GBP – USD 1. 503

GBP – EUR 1. 233