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The Markets
Prices in the UK are growing at their slowest rate since 2009 official figures from the Office for National Statistics have shown. The consumer price index, the UK's leading inflation measure, slipped to 2.4% in June - from 2.8% in May - as discounts from early summer sales kicked in. The largest contributor to the fall was a 4.2% reduction in clothing and footwear prices, with lower fuel, transport and food prices also aiding the slide. The news will no doubt provide monetary policy committee members with comfort that they made the right decision to increase quantitative easing to 375 billion pounds earlier this month. At the London close the Dow Jones was down by 30.73 points at 12,696.48 and the Nasdaq was down by 6.80 points at 2,570.25.
In London the FTSE 100 lost 33.34 points to 5,629.09; the FTSE 250 finished 56.03 points behind at 11,019.23; the FTSE All-Share fell by 20.40 points to 2,916.20; and the FTSE AIM Index declined by 2.93 points to 685.47. 
Broker Notes Canaccord Genuity reiterated its "buy" recommendation for Dialight (DIA) with a 1,200p target price. The LED lighting company will report first half results on 23rd July and the broker expects it to have achieved revenues of 60.8 million pounds, with an operating profit of 7.3 million pounds. Canaccord noted that the company's lights are up to 70% more efficient than traditional lighting and expects cell tower operators to accelerate their replacement of conventional strobes. The broker also pointed out that Dialight is the only Federal Aviaiton Administration (FAA) approved supplier to this market. The shares inched down by 3p to 997p. Panmure Gordon kept its "sell" stance for SThree (STHR) with a target price of 158p. The recruitment agency reported adjusted first half pre-tax profits of 9.3 million pounds, falling short of the broker's forecast of 10.2 million pounds. Panmure noted that the firm's performance is usually weighted towards the second half and raised concerns over a weakening of the macro environment leading to reduced placements and fees. Shares in SThree edged up by 0.75p to 260.75p. 
Shore Capital maintained its "buy" recommendation for London and Stamford Property (LSP), noting that the real estate company has available funds of 900 million pounds, offering significant scope for acquisitions. The broker expects the group to focus on residential properties in London with the possible long-term goal of creating a specialist real estate investment trust. Shore added that the company has already made some attractive purchases, such as the Marlow office building yielding 9% and the Leatherhead asset offering 11%. The shares crept up by 0.5p to 110.2p. WH Ireland retained its "buy" rating for William Sinclair (SNCL) with a 200p target price. The broker said that the horticultural company plans to triple production of its SuperFyba peat substitute by investing 1.5 million pounds in new machinery. WH Ireland noted high demand for the product and expects the expansion to be completed by November 2012. On the broker's forecasts, the shares trade on a prospective multiple of 10.7 times for the financial year ending September 2013 and offer a dividend yield of 4.7%. William Sinclair shares were unchanged at 157.5p. Blue-Chips Rio Tinto (RIO) reported record iron ore production in its first half, of 120 million tonnes, with shipments of 115 million tonnes up 4% on 2011's comparable period. The miner also achieved a 5% rise in copper production in the second quarter, year-on-year, as processing efficiencies at Escondida, Chile, came into effect and higher copper grades were enjoyed. However, the firm suffered a 12% fall in aluminium production in the second quarter as it was forced to shut down two thirds of the capacity at its Alma project in Quebec due to strikes. Shares in Rio Tinto tumbled by 69.5p to 2,916.5p. 
Fashion retailer Burberry Group (BRBY) announced that it has served notice to terminate its license agreement with fragrance company Interparfums at the end of the 2012 calendar year. The firm noted that it remained in discussions with the French business with regards to potentially establishing a new business model but there was no certainty of an agreement being reached. On the day of termination, Burberry would pay Interparfums 181 million euros (142 million pounds). The shares slipped by 11p to 1,196p. Shares in Wolseley (WOS) dropped by 45p to 2,283p after it said that difficult trading conditions in mainland Europe during its third quarter continued into the final quarter. As a result, the building materials distributor noted that it is likely to suffer an impairment on the 393 million pounds of goodwill and intangible assets associated with its Danish business. The group added that it is also like to suffer an impairment to its French operations and that it may decide to dispose of the division altogether. Mid-Caps CSR (CSR) announced that electronics giant Samsung has agreed to buy its mobile technology business for a cash consideration of 310 million dollars (198 million pounds), as well as invest a further 34.4 million dollars (22 million pounds) for a 4.9% stake in the semiconductor manufacturer. The group announced plans to return 285 million dollars (182 million pounds) of the sum to shareholders. The firm also noted that the sale will allow it to focus on its high growth markets of Voice & Music, Automotive Infotainment, Imaging and Bluetooth. The shares soared 73.7p to 292p. 
Specialist healthcare company BTG (BTG) reported that revenues from its Licensing & Biotechnology business were ahead of expectations after it received a 22 million dollar (14.1 million pound) royalty payment for its BeneFIX hemophilia treatment. As a result, the firm raised its revenue target for the year ending 31st March 2013 from between 180 and 190 million pounds to between 190 and 200 million pounds. Meanwhile, the group noted that the roll-out of its Voraxaze treatment for methotrexate toxicity has been completed in the US and is trading in-line with expectations. BTG shares advanced by 2.8p to 406.7p. Dairy Crest Group (DCG) said that it was confident of meeting its full year targets, although noted that trading conditions in the first quarter were challenging. In order to mitigate costs, the milk and cheese company noted plans to close two of its dairies. During the period, the firm received a 430 million euro (344 million pound) binding offer for its St. Hubert business in France, which it will use to reduce its net debt position. The shares leaked 4.4p to 336p. Small Caps, AIM and PLUS Creon Resources (CRO) has entered into a joint-venture agreement with China based shipbuilding giant Yangzijiang Shipbuilding, which will see the two parties design and construct marine offshore oil and gas vessels. Resources focused investment company Creon will invest 15.33 million dollars into the the new business, YZJ Holdings, while Yangzijiang will inject 14.67 million dollars, leaving Creon with the majority stake. The development excited the markets as Creon shares surged by 0.225p to 1.225p. Industrial machines manufacturer Somero Enterprises (SOM) reported the strong trading seen in the first quarter of 2012 had continued into the second quarter, meaning first half revenue will be around 50% ahead of its 2011 comparable. Impressively, Somero expects this increased sales volume to translate into a EBITDA figure for the first half which will be slightly ahead of the market's forecast for the entire full year performance. North America showed strong growth thanks to mild weather conditions and a benign economic environment while its Chinese business grew rapidly, benefiting from the investment previously made in this region by Somero. The company's shares rocketed by 6p - just over a third - to 23.75p. Lamprell (LAM) shares jumped by 11.5p to 114p on the back of a 120.9 million dollar contract win with Seajacks 4 Limited to design, construct and deliver a self-elevating and self-propelled jackup for offshore oil and gas and offshore win turbine installation. The engineering and contracting services company will construct the 'Seajacks Hydra' vessel at its Hamriyah facility in the United Arab Emirates, which will be delivered in 2014. 
Gold Fields Limited is to purchase Orsu Metals Corporation's (OSU) 40% interest in the Talas gold-copper-molybdenum project in the Kyrgyz Republic for 10 million dollars in addition to agreeing to subscribe for 6.3 million pounds worth of Orsu shares at 25p each. The company will used the proceeds for the sale and subscription to fund its equity portion of the Karchiga project capital expenditure. Orsu Metals shares raced 2.75p higher to 8.875p. The board of Titan Europe (TSW) has noted the recent press speculation surrounding a potential bid for the company, confirming that it has received an approach from Titan International Inc. The vehicle components engineering firm noted that there can be no certainty a formal offer will arise from any discussions, but noted that under the City Code on Takeovers and Mergers, Titan International has until the 14th August if it wishes to make one. Titan shares left 17p higher to 130p on the news. Shares in Tanfield Group (TAN) slipped 2.2375p to 42.5p on news the aerial lifts manufacturer raised 2.2 million pounds via the issue of shares at 42p to provide 24% owned Smith Electric Vehicles with a six month loan. Tanfield will issue the short-term lending facility to Smith to provide liquidity support prior to its planned IPO in the US later this year. Simultaneously the group provided a brief update on trading noting that demand for power access products has continued to hold up with lead times dropping, which should see order intake rates increase. Tanfield remains optimistic it can reach break-even volumes during the second half of 2012. | 
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