| The Markets Spanish Prime Minister Mariano Rajoy unveiled a range of new austerity measures to save 65 billion euros as part of a deal with Eurozone leaders to rescue the country's banks. Alongside an array of slashes in government expenditure, Rajoy announced a rise in the rate of sales tax from 18% to 21%, causing fury among civilians; rightly so as his party's pre-election campaign pledge was to lower taxes. The news coincided with a warning from the International Labour Organisation that continued austerity would see the Eurozone lose a further 4.5 million jobs. The organisation commented that focus needed to shift to job creation, as "it's not only the eurozone that's in trouble, the entire global economy is at risk of contagion". At the London close the Dow Jones was down by 32.43 points at 12,620.69 and the Nasdaq was down by 14.76 points at 2,570.76.
In London the FTSE 100 gained 0.41 points to 5,664.48; the FTSE 250 finished 97.71 points behind at 10,967.78; the FTSE All-Share fell by 3.24 points to 2,933.95; and the FTSE AIM Index declined by 1.08 points to 696.38. 
Broker Notes Seymour Pierce initiated coverage of Messaging International (MES) with a "buy" recommendation and 2.1p target price. The mobile video messaging provider has a history of steady earnings growth and the broker noted that the firm is set to bring out two new products in the second half of 2012, including text to voice software in India. Seymour Pierce forecasts compounded annual revenue growth of 16% over the next three years, bringing revenues to 5.7 million pounds by 2014. The shares jumped by 0.025p to 0.825p. Singer Capital maintained its "buy" stance for Micro Focus International (MCRO) with a 570p target price. The broker believes the software developer's focus on delivering a steady supply of new technology to its clients give it good revenue visibility. Singer noted that the group is the market leader in the 250 million dollar (160.7 million pounds) COBOL programming market and pointed to its Visual Cobol software, which allows companies to reuse their older software in modern environments. Shares in Micro Focus inched down by 4p to 542p. 
Northland Capital reiterated its "buy" rating for Anite Group (AIE) with an increased target price of 153p, from 140p. The broker was impressed by the technology group improving its adjusted EBIT margin by 800 basis points in the year ended April 2012, to 28.1%, as it benefited from higher than expected 2G and 3G equipment sales. Northland added that this could increase to 29% in the 2013 financial year as the company's mix moves more towards software. With a strong cash position, the broker believes that Anite has room to make some small bolt-on acquisitions. The shares crept up by 0.1p to 131.9p. Blue-Chips Fashion retailer Burberry Group (BRBY) reported year-on-year revenue growth of 11% for its first quarter, to 408 million pounds, falling just short of consensus forecasts of 413 million pounds. Retail sales rose by 14% to 280 million pounds, with growth driven by the UK, France Germany and China, while Italy and Korea remained weak. The firm added that its flagship stores in London and Chicago are expected to reopen later in the year. The shares tumbled by 95p to 1,189p. 
Royal Dutch Shell (RDSA) has agreed to buy Norwegian liquefied natural gas company Gasnor for 74 million dollars (47.6 million pounds). The move is in-line with the oil and gas giant's strategy of developing its presence in the LNG market and will give it access to two tanker ships, a fleet of trucks and a network of terminals. The group believes that the switch the LNG will allow it to reduce its emission levels ahead of new regulations which will come into effect in 2015. Shares in Shell edged up by 20p to 2,199.5p. A Phase III study on GlaxoSmithKline's (GSK) one-a-day Dolutegravir HIV treatment, developed in joint venture with Japanese firm Shionogi-ViiV Healthcare, has proven to be more effective that the current market leader Atripla. The news bodes well for the drug gaining regulatory approval, with broker Shore Capital forecasting a modest revenue contribution of around 16 million pounds from the treatment in 2014. HIV treatment has a large market in the US, with Atripla achieving sales of 3.22 billion dollars (2.1 billion pounds) in the 2011 financial year. The shares grew by 11p to 1,465p. Mid-Caps Shares in Britvic (BVIC) crashed by 40.1p to 260.1p after the drinks maker announced that it has had to recall all the bottles of its Robinsons Fruit Shoot and Fruit Shoot Hydro which were fitted with a new cap design. The firm will resupply retailers with market proven caps and delivery is expected to begin in six weeks. The fiasco is expected to cost the firm between 15 and 25 million pounds in pre-tax profits, including between 5 and 7 million in 2013. 
Recruitment agencies continue to struggle, with Hays (HAS) reporting a 10% fall in UK & Ireland net fees during the quarter ended 30th June 2012, year-on-year, with total net fees for the group down by 1%. However, the company noted strong growth in Continental Europe, with Germany reporting a 25% rise in like-for-like net fees. It added that it reduced its net debt position to 135 million pounds from 177.7 million pounds as at 31st December 2011. The shares dropped by 2.5p to 70.55p. JD Wetherspoon (JDW) saw sales in the 11 weeks ended 8th July 2012 rise by 11.9% on 2011's comparable period, boosted by strong contributions from the jubilee celebrations and Euro 2012 championships. Since the start of the year the pub chain opened 40 new pubs while closing three, and noted plans of opening between 20 and 30 in the next financial year. JD Wetherspoon shares swelled by 16.2p to 437.9p. Small Caps, AIM and PLUS Neos Resources (NEOS), the processor of non-edible seed complexes in India, confirmed that as well as processing crude jatropha oil (CJO) it had now commenced with the procurement, processing and sale of oil derived from castor, neem and pongamia. The group also conceded it was currently discussing the sale of very significant quantities of CJO to several major European businesses. As a result of these discussions it has reduced the level of CJO processing to fulfil the potential supply requirements of these clients. Neos shares surged 0.175p to 0.65p. Confidence in the management and investment strategy of Creon Resources (CRO) was evident on Wednesday as the oil and gas infrastructure investment company announced it has raised the maximum possible amount of 12.08 million pounds at 0.5p a share via a subscription offer, the amount raised more than 44 times its pre-announcement market cap of 270,000 pounds. The proceeds will be used to pursue and execute investment opportunities as and when they materialise, with the group admitting it was in the process of examining several opportunities. This includes a potential joint venture investment currently at the 'advanced discussions' stage, which a substantial amount of the proceeds would be channeled in to. Creon shares jumped 0.2125p to 0.8425p. Cognitive behavioral therapist Ultrasis (ULT) has entered into a research partnership with the mental health services department of the hospital at West China School of Medicine Sichuan University, Chengdu. The partnership is aimed at establishing the benefits of using Ultrasis' 'beating the blues' program to alleviate mild and moderate depression within the Chinese population and whether any cultural adaptation is required to develop a China-specific version. Chief executive Nigel Brabbins commented the deal provides the opportunity to "build a credible base from which to address the largest market by population in the world." Ultrasis shares climbed 0.625p to 0.3925p. 
Shares in Afferro Mining (AFF) rose by 4.75p to 46.25p on news that International Mining and Infrastructure (IMIC) has acquired a 3.9% stake in the Cameroon-focused iron ore exploration and development company. IMIC plans to turn this stake into a strategic one by putting forward, through its partner African Iron Ore Group (AIOG), a comprehensive infrastructure package proposal for its operations. "We believe Afferro offers an attractive opportunity alongside our shared interest, with AIOG, in the Simandou South infrastructure related project." International Mining shares closed 2.5p higher at 29p. Packaging design firm Imagelinx (ILI) cut to the chase by admitting May and June revenues saw a marked deterioration, with levels considerably below that seen in the first four months of the year. The business attributed the sudden decline in spending across almost all of its clients to the effects the recent economic uncertainty in Europe has had on confidence. Imagelinx noted it had made significant steps in realigning costs to mitigate the impact of these low trading levels, although it admitted it is unlikely a recovery in turnover will be seen before the third quarter of 2012. Imagelinx shares plummeted 0.1375p to 0.3375p. African Consolidated Resources (AFCR) shares were lifted 0.125p to 2.25p as it unveiled that initial results from work related to an impending JORC-compliant upgrade on the Pickstone-Peerless gold project have demonstrated the likelihood of a significantly higher resource announcement than previously anticipated. The current resource at the prospect is estimated at 1.54 million ounces of gold. | 
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