RAMSEY CROOKALL & CO EVENING REPORT 22 JUNE 2010

The FTSE closed in the red after chancellor George Osborne’s first Budget, which contained a huge raft of tax and benefit changes, most of which will raise revenue for the government.

VAT is going up from 17.5% to 20% and capital gains tax is rising to a flat rate of 28%.

The sectors most directly affected are taking the new measures in their stride, with retailers Marks & Spencer up 5p and Morrison up 7p.

Lloyds Banking rose 2p to 59p despite the banks being hit with a levy based on their balance sheet.

British Airways, up 1p at 214p has taken a major step towards restructuring its huge pension liabilities after the trustees of is two pension funds agreed a recovery plan that avoids their closure to members.

Premier Inn and Costa Coffee were the star performers for hotel and restaurant chain Whitbread as it posted a record 7.6% like for like sales rise.

Electronic sensors form Halma has produced record results for the seventh year in a row with an increase in adjusted profit of 9%.

Distribution and outscourcing group Bunzl said overall trading is in line with full year expectations with revenue growth of 2%.

THE FTSE 100 CLOSED DOWN 52 @ 5246

THE DOW JONES AT 4.30 IS UP 28 @ 10,470

THE NASDAQ COMP AT 4.30 IS UP 17 @ 2306

Exchange Rates

GBP – USD 1. 484

GBP – EUR 1. 207