RAMSEY CROOKALL & CO MIDDAY MARKET REPORT 18 JUNE 2010

The FTSE is still in positive territory though prices have come off their highs following the release of public sector borrowing requirements figures, despite the date being better than expected. The net cash requirement for the public sector came in at ?11.963 billion, against expectations of ?20.25 billion.

BP is up 9p at 369p despite CEO Tony Hayward receiving an eight hour verbal assault from US politicians. Hayward was up in front of a US congressional Committee to explain how the Gulf of Mexico catastrophe arose.

They accused the oil man of ignoring the risks his company was taking drilling a mile down in the Gulf of Mexico. Hayward said he was “deeply sorry” for the spill, the worst environmental disaster in US history.

Spain’s Santander has confirmed that it has entered a bid for 319 high street branches being sold by the Royal Bank of Scotland. The banking giant didn’t comment on any financial details, but market speculation earlier this week suggests a deal could be worth about ?1.8 billion.

Shares in Capita down 12p, and Serco down 5p are subdued on news yesterday that the new government has put the brakes on ?11.5 billion of projects casting doubts on growth prospects for two of public sector’s favourite outsourcing companies.

BT shares fall 2p on reports it faces a long drawn out strike with its blue collar workers.

Fund manager Henderson has scrapped its planned acquisition of fund boutiques run by US asset manager RidgeWorth Capital Management after failing to agree terms with owner SunTrust Banks.

THE FTSE 100 AT 12.40 IS UP 16 @ 5270

THE DOW JONES CLOSED UP 24 @ 10,434

THE NASDAQ COMP CLOSED UP 1 @ 2307

Exchange Rates

GBP – USD 1. 483

GBP – EUR 1. 198