RAMSEY CROOKALL & CO  20th July 2012

Evening Report

The FTSE 100 ends 1.1% lower at 5651.77, but faring better than its major European counterparts. Worries about the euro zone crisis are back with a vengeance after Spain's GDP estimates for next year are revised down and on news that the Valencia region will seek central government help with its debt refinancing. Banks and mining stocks are the worst performers, with RBS down 3.6% and Rio Tinto off 3%.

Shares in UK life insurance and asset management group Resolution dropped sharply after the group cancelled the cash return of 250m pounds set for the first half of 2012 due to "uncertainty" in the markets.

The group said that the decision was based on its estimated capital position as at the end of June after working out the expected future capital requirements of Friends Life Group "against a backdrop of heightened investment, economic and regulatory uncertainty."

Telecoms group Vodafone also declined after reported revenues fell by 7.7% (up 1% on an organic basis) in the first quarter with unfavourable foreign exchange movements in Europe providing a drag.

Meanwhile, United Utilities rose slightly as investors abandoned riskier sectors such as miners and financials. Evraz, Kazakhyms, Barclays and RBS were all fallers by late afternoon. This came amid oncerns Spain may be forced into requiring a full bailout after the government gave the thumbs up for the EUR100bn aid package for Europe's fourth largest economy's banking sector, as passed by the EU a few weeks ago.

Non-life insurer Beazley soared into the black in the first half of 2012, delivering a return on equity of 18 per cent and a combined ratio of 91 per cent. During the six months the firm generated a profit of $112.9m, compared to a loss of $24.2m the previous year, while gross written premiums rose to $1,013.1m (2011: $924.8m) and net premiums written rose to $650.8m from $635.5m.

THE FTSE 100             closed          Down      62       @      5,651 THE DOW JONES            @ 17:00         Down      88       @     12855 THE NASDAQ               @ 17:00         Down      27       @      2938 Exchange Rates GBP – USD        @      17:00           1.5626 GBP - EURO      @      17:00           1.2835