| The Markets Shares across Europe bounced higher on Friday as the European Central Bank (ECB) echoed its earlier comments that the next steps it takes to combat the Eurozone crisis would be “adequate to meet its objectives” in curbing Italian and Spanish borrowing rates. Meanwhile, members of German chancellor Angela Merkel’s coalition party announced they would not stand in the way of the ECB’s bond-buying programme, recognising the purchase of troubled nations’ government bonds as a wise move. Across the Atlantic, analyst expectations were beaten as the US economy was reported to add an extra 163,000 jobs in July, according to the US Department of Labor. Despite this, the official unemployment rate rose from 8.2% to 8.3% as more people re-entered the workforce but failed to find a job. At the London close the Dow Jones was up by 245.40 points at 13,124.28 and the Nasdaq was up by 55.68 points at 2,681.20.
In London the FTSE 100 rose by 124.98 points to 5,787.28; the FTSE 250 finished 224.53 points ahead at 11,301.14; the FTSE All-Share gained 62.29 points to 2,999.41; and the FTSE AIM Index climbed by 9.08 points to 676.33. 
Broker Notes Seymour Pierce reiterated its "sell" recommendation for HMV Group (HMV) with a target price of 1p. Despite the home entertainment retailer appointing a new chief executive in Trevor Moore, the broker maintained its view that the firm has too many structural issues. While the group hopes to take advantage of the demise of video game seller GAME, Seymour Pierce expects any resulting profit gains to be short lived, noting little benefit to the company following Zavvi entering administration in 2008. The shares jumped by 0.21p to 3.63p. 
Shore Capital retained its "buy" stance on RSA Insurance Group (RSA) after the company's interim results beat the broker's expectations, with operating profits hitting 316 million pounds. The broker expects the firm to finish the 2012 financial year with a net asset value of 100p and added that the shares trade at a 19.3% discount to the sum-of-parts valuation of 138p. Shore also pointed to the highly attractive dividend yield of 8.6%. RSA shares advanced by 1.5p to 111.4p. Daniel Stewart maintained its "buy" rating for Petroceltic International (PCI) with a 16p target price. The oil and gas explorer is scheduled to provide an update on the commercial viability of its Ain Tsila field in Algeria on 10th August and the broker expects to see a positive result with the declaration of provable reserves. Daniel Stewart added that the firm is enjoying success in Italy with the Elsa discovery containing and estimated 104.2 million barrels of oil and 3.15 billion cubic feet of gas. The shares were unchanged at 8.05p. Blue-Chips Shares in International Consolidated Airlines Group (IAG) crashed 8.3p to 151p as it reported a first-half pre-tax loss of 390 million euros (306.2 million pounds) compared to a profit of 39 million euros (30.6 million pounds) in 2011's comparable period. Despite revenues climbing 9.8% to 8.5 billion euros (6.7 billion pounds), the British Airways owner was unable to cope with the 25% rise in fuel costs. The firm also warned that job losses were inevitable at Iberia, as it looks to cut costs. 
Pre-tax losses at Royal Bank of Scotland Group (RBS) deepened to 1.5 billion pounds for the half year ended 30th June, from losses of 794 million in the first half of 2011, largely attributable to a 3 billion pound own credit adjustment. The firm noted that it achieved a 1.8 billion pound operating profit, down 6.7% year-on-year as it continued to take hits for mis-sold payment protection insurance, as well as setting aside 125 million pounds to deal with the impact of a computer glitch in June that left customers unable to access their accounts. The shares leapt by 11.5p to 216p. As the result of weak US gas prices BHP Billiton (BLT) announced that it will take a 2.84 billion dollar (1.8 billion pounds) impairment charge against the value of its Fayetteville shale gas assets, acquired in February 2011. The mining and oil giant added that it will also suffer a 450 million dollar (289.9 million pounds) impairment against the carrying value of its Nickel West assets, due to deteriorating margins. Shares in BHP Billiton gained 60.5p to 1,918p. Mid-Caps Inmarsat (ISAT) saw pre-tax profits for the six months to 30th June fall 12.5% to 223 million dollars (143.7 million pounds) year-on-year, on broadly flat revenues of 684 million dollars (440.6 million pounds). However, investors were encouraged to hear of the recovery of the firm's Solutions division, which achieved revenue growth of 8.6%, driven by 32% growth of its Broadband and other MSS business. The satellite telecommunications company noted that the performance was helped by the acquisition of Ship Equip in April 2011. The shares soared by 52.7p to 537p. Rentokil Initial (RTO) reported pre-tax profit growth of 56.9% in its first half, ended 30th June, to 46.6 million pounds as it finally noted the beginnings of a turnaround for its City Link courier business. The division achieved an 18.3% reduction in second quarter operating losses and hopes to report a profit in the fourth quarter. Meanwhile, the group's core pest control division gained its first footholds in the South American and Middle East markets, through the acquisitions of Brazilian firm Asseio and Dubai based Totalai. Shares in Rentokil climbed by 4.35p to 76p. 
In order to increase its presence in the US Eagle Ford shale gas region, John Wood Group (WG.) acquired Texas based installation and maintenance company Duval for an undisclosed sum. The target reported sales of 32 million dollars (20.6 million pounds) for the year ended December 2011 on gross assets of 14 million dollars (9.0 million pounds), and will provide complementary services to the oil and gas support firm's existing capabilities. The shares gained 12p to 786p. Small Caps, AIM and PLUS Shares in CAP-XX (CPX) plunged 6.625p to 10.625p as the super-capacitor designer and manufacturer conceded that it was experiencing delays with raising additional finance. As part of a recent placing, a Chinese automotive component company had agreed to subscribe for a significant chunk of shares subject to Chinese government approval, although some undisclosed difficulties with this agreement have now arisen. Discussions are ongoing in a bid to complete the fundraising, although the firm admitted there was no certainty the subscription will be completed. President Petroleum Company (PPC) provided an update on work at its development at the Puesto Guardian concession, confirming it is now in the process of a fraccing campaign and pressure testing at 8 wells in the Pezo Escondido field. The results of this workover on the first three wells to date have been very encouraging, the company noted, and point towards a likely production uplift in the final quarter of 2012. President added that in June, output averaged 235 barrels of oil per day, compared to 160 barrels in the first half of the year while the sale price per barrel had improved year-on-year by 28% to 72 dollars. President Petroleum shares climbed 2.125p to 26.5p. Europe focused mineral development group EMED Mining* (EMED) unveiled the acquisition of the last land plot required for planned operations of the Rio Tinto copper mine, for 5 million euros. The acquisition of the land is required in order to restart and maintain production at the mine, and satisfies all of the project’s needs for tailings deposition from proposed operations. EMED aims to trigger the project restart before the end of the year. Relieved investors bought into the shares, which jumped 1p to 10.25p. 
Allergy Therapeutics (AGY) shares surged 3.125p to 11.75p on news that the Food and Drugs Administration has confirmed the clinical hold in the US dated 2007 has now been lifted on the company’s grass pollen allergy vaccine. As a result of the immediate lift, Allergy has gained approval to progress with a phase three efficacy study, and is now focused on securing a partner to commercialise the drug, Pollinex, Quattro, in the US. Electronic and physical security systems provider Newmark Security (NWT) disappointed the markets as it posted an almost 80% drop in pre-tax profits to 189,000 pounds for the year to April, despite revenue climbing 3.5% to 13.1 million pounds. The heavy reduction in the bottom line was primarily attributed to a 194,000 pound impairment provision against certain development costs and professional fees in relation to the dismissal of two former employees. The firm also blamed the reduction in profit to falling public sector spending, which hampered demand for its products. Newmark shares slipped 0.05p to 0.65p. Hemodynamic monitoring company LiDCO (LID) announced it has selected Nihon Kohden as its exclusive distributor for the LiDCOrapid monitoring kit in Japan. Nihon Kohden will work with LiDCO, and its existing partner Argon Medical Devices, to market and sell LiDCOrapid products in Japan. The deal means LiDCO now has access to the second largest market in the world for hemodynamic monitoring with approximately 860,000 high-risk surgical patients per annum who would benefit clinically from improved intraoperative fluid management. LiDCO shares inched 0.375p higher to 17.375p. * EMED Mining is a corporate client of Rivington Street Holdings, the owner of this website. | 
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