RAMSEY CROOKALL & CO

6th May 2011

Afternoon Report

The FTSE 100 down 0.2%, with the ongoing weakness in energy and resource prices weighing across the index. However, the index has moved off earlier lows as crude oil rebounds from softer levels. Mining stocks are also recovering some of their losses. The market is now looking toward the key non-farm payroll announcement from the US.

Part-nationalised lender Royal Bank of Scotland is in demand. It made an underlying first quarter operating profit of £1.05bn, up from £882m the year before. Total income declined to £7.55bn from £8.21bn the year before, as market conditions were not so favorable this time round for the group's investment banking arm, Global Banking and Markets.

Car insurer Admiral has seen strong growth so far this year, although things are tougher at their website business Confused.com. Turnover was up by 56% in the first quarter compared with the same period last year at £539m, Admiral said in a trading statement covering 1 January to 5 May. Engineering group IMI said its first-quarter revenue increased 10% and that it expects first-half results to improve significantly on the year, also adding that the company is appointing Roberto Quarta as chairman.

International Consolidated Airlines (IAG) has taken off after it saw an improved performance in the first quarter as it reported its first results since forming from the merger of British Airways and Spain’s Iberia.

THE FTSE 100 at 12:00         Down 13 @ 5906

THE DOW JONES closed Down 139 @   12584

THE NASDAQ COMP closed Down 13 @     2814

Exchange Rates

GBP – USD           1.63 GBP - EURO          1.12