RAMSEY CROOKALL & CO MIDDAY MARKET REPORT

1st JUNE 2010

The London market slides 2% this morning as investors return from a long holiday weekend.

BP plunges 15% in reaction to its failed attempts to stop the oil leak into the Gulf of Mexico. The next plan is to attach a cap to the well to trap the escaping oil.

Prudential’s $35.5 billion bid for American International Group’s Asian business looks in disarray after the US insurer refused to renegotiate the price down to nearer $30 billion. Pru’s shares are up 22p at 564p.

The negative mood has not been helped by the European Central Bank’s warning of nearly €200 billion of bad loans sitting in European banks’ balance sheets. Royal Bank of Scotland is a penny lower at 46p.

A disappointing Chinese PMI number hurts mining shares with BHP Billiton and Anglo American shares down 3%. Irish no-frills airline Ryanair soar 6% following stronger than expected revenues and profits as well as the declaration of its first dividend.

World Markets

THE FTSE 100 AT 12.25 IS DOWN 113 @ 5074

THE DOW JONES CLOSED DOWN 122 @ 10,136

THE NASDAQ COMP CLOSED DOWN 20 @ 2257

Exchange Rates

GBP – USD 1. 454

GBP – EUR 1. 196