RAMSEY CROOKALL & CO MORNING MARKET REPORT

2nd JUNE 2010

London’s top stocks have opened lower with Prudential’s failed bid for AIG’s Asian business grabbing the headlines.

Prudential are down 14p at 560p after it scrapped its contentious plans to buy AIG’s Asian arm (AIA). In a statement the Pru took the decision to withdraw after failing to negotiate a cut in the $35.5 billion purchase price for AIA. The Pru’s $21 billion rights issue to finance the deal will now also be abandoned.

BP is down 10p at 420p on news it faces both a civil and criminal probe into the causes of the Gulf of Mexico disaster. The UK company is facing increasing anger over the spill, the biggest in American history.

Scottish soft drinks maker A G Barr said it made a good start to the year, thanks to strong performances by its Irn Bru and Rubicon brands. Total revenue increased by 17.9% and operating margins continue to be in line with expectations.

Water company Northumbrian Water, up 7p at 286p increased full year profits by 11.5%, mainly due to the uplift in tariffs to support ongoing high capital investment.

Barclays fall 7p to 296p after its TAV unit has made a recommended cash offer to buy Stockholm-listed carbon developer Tricorona for about ?98 million. The deal, which is expected to be completed in the third quarter of 2010, would be accretive to Barclays earnings within one year of completion.



THE FTSE 100 AT 9.50 IS DOWN 85 @ 5078

THE DOW JONES CLOSED DOWN 112 @ 10,024

THE NASDAQ COMP CLOSED DOWN 34 @ 2222

Exchange Rates

GBP – USD 1. 466

GBP – EUR 1. 20