| The Markets It was the US's turn to push global equity markets lower, as the world's largest economy revised down its growth figures for the first quarter of 2012. The 1.9% annualised growth reported was down from the 2.2% first thought due to a downward revision in consumer spending. In addition, business activity within the States expanded at a lower place than expected, with the Chicago Purchasing Manager's index falling from 56.2 to 52.7 in May, and jobless claims coming in 10,000 higher than expected at 383,000. Closer to home, president of the European Central Bank, Mario Draghi admitted that the current Eurozone set-up is unsustainable. He added that leaders from across the region need to decide how the bloc will look in the future if they want the problems of today to remain in the history books. At the London close the Dow Jones was down by 148.38 points at 12,432.31 and the Nasdaq was 36.33 points lower at 2,834.66.
In London the FTSE 100 fell 93.86 points to 5,297.28; the FTSE 250 finished 163.05 points lower at 10,494.82; the FTSE All-Share lost 47 points to 2,754.91; and the FTSE AIM Index slipped 9.68 points 691.37. 
Broker Notes Both Peel Hunt and Investec view Chime Communications (CHW) as a "buy", the former with a price target of 200p, as both believe the agreement to sell its public relations division Bell Pottinger for 19.6 million pounds, eight times EBITDA, is at a good price. The agency has seen some adverse trading in recent months, and so the brokers are happy to see the back of it. With its significantly strengthened cash balance exceeding 20 million pounds, the group will now have the resources to focus on its much stronger VCCP advertising franchise as well as its sports marketing operation. Chime shares climbed 10.5p to 160.5p Shore Capital maintained its "hold" recommendation on supermarket chain Morrisons (MRW), noting a recent interview by journalists with chief executive Dalton Philips, in which he commented "It's incredibly tough out there, much worse than last year...the Jubilee, Euros and the Olympics will be a boost, but I can't see any respite in the next year or so." . The broker views this as a 'remarkable statement', which indicates that there is no prospect for an improvement in trading this year. Morrisons shares crept 1.7p higher to 276.7p. ADVERTISEMENT Latest small cap tip out now on WatsHot.com
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Just GBP73 for a year's membership by direct debit (GBP87.60 by card/cheque/Paypal) Click here to join WatsHot.com now Northland Capital Partners reversed its stance on Cape (CIU) from a "sell" to a "buy", reporting that after speaking to Cape's management. Northland is reassured by the board's comments that post last Friday's unimpressive contract update, in which was the industrial services firm realised a 14 million pound charge, that the issues experienced in Algeria should not be repeated. Despite the broker believing it will take some time for investor confidence to be repaired, it commented that a solid wider trading environment suggests the business will recover from recent problems. Cape shares rose 4.6p to 242.6p.
Blue-Chips Vedanta Resources (VED) provided an update on its proposed consolidation and simplification, announcing the share merger of subsidiaries Sesa Goa and Sterlite Industries. In addition, the firm's 70% holding in Vedanta Aluminium will be consolidated in Sesa Goa and MALCO's power business will be disposed of for 27 million dollars. Management believes these initiatives will be improve cash fungibility, result in greater financial efficiency and enhance visibility of earnings and cash flow. Vedanta shares closed 11.5p lower at 929p. Food ingredient supplier Tate & Lyle (TATE) posted 14% growth in sales to 2.1 million pounds for the year to March, as well as a 23% rise in pre-tax profits to 323 million pounds as speciality food ingredients including zero-calorie sweetener Splenda saw a hike in demand. The group saw steady growth across its markets, notably in the developing regions of Latin America and Asia, and despite rising economic uncertainty and increased investment, the board is confident further growth can be achieved this year. The group's shares slipped 5p to 672p. It wasn't such a pretty picture for Kingfisher (KGF) as the home improvements retailer saw sales in the quarter to April 28th slip 3.6% to 2.63 billion pounds and retail profits fall 8.6% to 160 million pounds. The firm, which blamed the figures on adverse weather conditions across the UK and continental Europe, also saw seasonal sales slump 22%. Despite the unfavourable background the B&Q owner commented, "we focused hard on our margin and cost initiatives and we remain confident [of delivering] a solid full year result". Kingfisher shares climbed 5.7p to 282p. Mid-Caps Halfords Group (HFD) meanwhile suffered a 0.8% drop in revenue to 863 million pounds in the year to March and a 20.3% slump in pre-tax profits to 94.1 million pounds as the tough economic environment and rising inflation ate into gross margins. On a divisional level, retail sales across the UK and Ireland fell 2.3% to 752 million pounds but was partially offset by a 12.9% jump in revenue to 110.8 million pounds from car servicing and repair arm Halfords Autocentres. The firm added that since the year ended sales have been 'very disappointing' with the usual seasonal demand for cycling and outdoor leisure products not coming through. Halfords shares slid 34p to 241.9p. A colossal 300 million pound write-down on goodwill at Thomas Cook Group (TCG) forced the ailing travel company to post a 165% rise in pre-tax losses to 712.9 million pounds in the half year to March. On an underlying level losses increased by just under a third to 328.3 million pounds, as the firm struggled with the economic downturn and its increasingly debt-ladened balance sheet. The board noted it is now taking some 'decisive action' to improve its position, which included the disposal of its investment in a Spanish hotel business which would, alongside the sale and lease back of some aircraft, add 239 million pounds its cash balance. Thomas Cook shares fell 1.5p to 18.75p. Small Caps, AIM and PLUS Shares in Biome Technologies (BIOM) dived 0.05p to 0.075p as the biotechnology firm conceded that revenues have been markedly below its expectations during April and May, which will have a significant adverse impact on the group's full year results. Customers of the bioplastics division are said to be reporting subdued demand for their products, particularly in southern Europe. Cash at the end of April stood at 1.4 million pounds, however this has now reduced significantly and thus Biome has been forced to take immediate action to reduce cash costs. XCAP Securities (XCAP) was yet another company to release some dire financial results, as the brokerage posted a 39% plunge in revenue to 3.2 million pounds for the six months to February, while swinging to a loss of 2.05 million pounds having posted a 409,000 profit the year prior. XCAP explained the results were not surprising considering the markets were facing some of the most difficult conditions 'for years'. To make matters worse, chairman Clive Carver, who was only appointed to the position in March, resigned with immediate effect, the group explaining that he had 'other commitments'. Transense Technology (TRT) added to what has already been a good week for the sensor systems company by announcing the successful completion of trials for its temperature and pressure monitoring systems by its customer, 'one of the world's largest mining companies.' Upon the successful completion of field trials the product is now approved for deployment in southern Africa. The customer is initially focused on fitting the system to its haul tracks however is also considering its installation to its ancillary mine vehicles, which would see the the number of systems it orders double. Transense shares closed 1p higher at 9.625p. The strong performance of Hollywood Classics and Metrodome Distribution in the 2011 calendar year saw revenue at film distributor Metrodome Group (MRM) climb 21% to 16.8 million pounds. The firm was however forced to realise a loss of 8.3 million pounds from a 680,000 pound loss in 2010 thanks to the placement of Target Distribution into administration. While the decision to close the subsidiary was seen as regrettable, it was reportedly necessary to safeguard the remaining divisions of the group. The markets reacted warmly to this with the shares rising 0.175p to 0.875p. PetroNeft Resources (PTR) has secured a 15 million dollar debt facility with joint-venture partner Arawak energy, allowing PetroNeft to pursue new opportunities alongside the firm in Siberia. The loan, which commands an interest rate of LIBOR + 6%, is secured on PetroNeft's 50% interest in licence 67 in Arbuzovskoye, and is repayable in one lump sum in May 2015. In addition the group reported it now plans to drill up to ten new production wells at licence 61 at Arbuzovskoye, with the first likely to move into production in the third quarter of 2012. The group's shares inched 0.25p higher to 7.625p. | 
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