RAMSEY CROOKALL & CO  26th June 2012

Morning Report

The FTSE 100 trades flat, paring gains after data showing that the UK government borrowed more than expected in May. Serco is the biggest loser, down 2.7% after its pre-close update.. Resource firms and banks partly recovered from a recent sharp selloff, while Royal Bank of Scotland is still suffering from a tech glitch.

Mining firms helped ensure the index traded in positive territory in morning action, with heavyweights Rio Tinto PLC 1.6% higher, BHP Billiton PLC up 1.2% and Anglo American PLC adding 1.5%. Metals prices were, however, mostly lower.

Oil prices, on the other hand, inched higher after dropping 0.7% the prior day. BP PLC followed the prices higher and added 1.4%, while BG Group PLC gained 1.1%.

Moody's lowers its long-term ratings on 28 Spanish banks by one to four notes and lowers two issuer ratings, pointing to the country's reduced creditworthiness.

Ocado Group PLC said Duncan Tatton-Brown will join as chief executive officer from Sept. 1, as the online grocer reported slight growth in half-year profit.

THE FTSE 100             @ 10:00      Down       1       @      5,449 THE DOW JONES            closed       Down       138     @     12640 THE NASDAQ               closed       Down       56      @      2836 Exchange Rates GBP – USD        @      10:00            1.5604 GBP - EURO      @      10:00            1.2493