| The Markets Those hoping that the UK recession is perhaps not as bad as previously thought were pleased to hear that retail sales jumped by 0.3% in July. The Office for National Statistics (ONS) also revised June's sales figures significantly from 0.1% to 0.8%,with many analysts now of the opinion that the 0.7% contraction figure provided for the economy for the three months to June was an over estimation. The ONS did however explain that the increase was led by an increase in fuel changes, and that excluding this component, sales were actually unchanged. At the London close the Dow Jones was up by 39.80 points at 13,204.58 and the Nasdaq was up by 22.24 points at 2,757.71. In London the FTSE 100 rose by 1.47 points to 5,834.51; the FTSE 250 finished 4.17 points ahead at 11,502.29; the FTSE All-Share gained 0.66 points to 3,029.73; and the FTSE AIM Index fell by 0.38 points to 682.24. 
Broker Notes Citron Research has come out with a damning report against New York listed Nu Skin (NUS), accusing it of performing multi-level marketing and or pyramid sales in China, both of which are illegal in the country. The research house also believes that the personal care products retailer is in violation of Food and Drug Administration regulations in the US and is lying about its relationship with Stanford University. Citron spoke with Dr. Stuart Kim at the university, who said that he had been promised research funding by Nu Skin, but it was never delivered and no data was created. At the London close, shares in Nu Skin were down by 1.24 dollars to 41.26 dollars. Panmure Gordon reiterated its "buy" recommendation for Bodycote (BOY) with an increased target price of 540p, from 505p. The broker is very impressed with the strength of the thermal processing company's balance sheet, claiming it is far superior to those of its larger peers, Cookson (CKSN) and Morgan Crucible (MGCR). Panmure added that the group has improved its product mix, with greater exposure to the higher margin later cycle end-markets. The shares advanced by 5.1p to 346.9p.  N+1 Brewin maintained its "buy" rating for Interserve (IRV) with an increased target price of 400p, from 347p. The construction company achieved pre-tax profits of 35.7 million pounds for the six months ended 30th June, beating the broker's forecast of 35 million pounds, with all three divisions performing well. Additionally, Brewin believes that the firm's investment in Middle East infrastructure is set to benefit from GDP growth in the region, as well as major events such as the 2022 World Cup in Qatar. Interserve shares climbed by 5.8p to 341p Shore Capital retained its "sell" stance for Go-Ahead Group (GOG), raising concerns that the public transport operator will be impacted by subsidy cuts and increased costs in the 2013 financial year. The broker also noted that the firm is on the shortlist for only one rail franchise, Thames-link, which will be awarded in May 2013. Shore believes that this is a must win contract for Go-Ahead, as its current dividend rate cannot be covered by cash flows from buses alone. The shares grew by 16p to 1,326p. Blue-Chips Shares in African Barrick Gold (ABG) jumped by 34.9p to 428.5p after its parent company, Canadian miner Barrick Gold, announced that it is in talks with China National Gold for the sale of its 74% stake in the business. African Barrick noted that if China National Gold were to acquire a holding of over 30% it would be obliged to make an offer for all of the Tanzania focused miner's outstanding shares. 
Mid-Caps Hikma Pharmaceutical (HIK) reported pre-tax profit growth of 45.1% for the six months ended 30th June, to 57.8 million dollars (36.9 million pounds), on revenue growth of 34.8% to 532.3 million dollars (339.8 million pounds). The performance was driven by its injectables division, which saw sales nearly double to 225.2 million dollars (143.7 million pounds). The firm launched 37 products during the period and received approval for a further 33. The shares gained 24.5p to 749.5p. Cinema chain Cineworld Group (CINE) achieved pre-tax profit growth of 94.2% to 13.4 million pounds for the 26 weeks ended 28th June, on revenues of 165.4 million pounds, up just 1.1% on 2011's comparable period. The firm also lowered its net debt position by 1.5 million pounds to 99.2 million pounds and increased its interim dividend by 5.6% to 3.8p. The group noted a strong start to the second half of the year, benefiting from the release of The Amazing Spiderman and The Dark Knight Rises, and has high hopes for the fourth quarter which will see the release of the final Twilight film and the next Bond film Skyfall. Cineworld shares swelled by 7p to 233p. 
Talvivaara Mining (TALV) warned that it will not be able to meet its full year target of producing between 25,000 and 30,000 tonnes of nickel for the 2012 financial year, instead lowering its expectations to 17,000 tonnes. The group blamed low first half production, 3,194 tonnes of nickel and 6,686 tonnes of zinc, on heavy rainfall and flooding at its operations in Finland. As a result the group reported an operating loss of 22.3 million euros (17.5 million pounds) for the six months to 30th June, compared to a profit of 10.4 million euros (8.2 million pounds) in the first half of 2011. Talvivaara shares tumbled 3.3p to 137p. Software developer Micro Focus International (MCRO) announced plans to return 130 million dollars (83 million pounds), or 50p per share, to shareholders through a B and C share scheme. The group noted that its first half performance benefited from a large one-off licence transaction and said that it expects full year revenues, ending 30th April 2013, to be "in the range of +1% to -3% on those reported in the year ended 30 April 2012 on a constant currency basis". The shares inched down by 3p to 541.5p. Small Caps, AIM and PLUS Rialto Energy (RIA) provided its weekly update on drilling operations at its Gazelle-P4 development well offshore Côte D'Ivoire, reporting the well has been drilled to the 13.375 inch casing point at a depth of 2,123 metres. Current operations are drilling out a cement shoetrack which will be followed by performing a formation integrity test. The news was enough to send Rialto shares 1.5p higher to 12.375p. Textile manufacturing firm Leeds Group (LDSG) has made the decision to write-off its 29% holding in cashmere business Dawson International (DWSN) following the appointment of administrators to the company. Leeds' stake in Dawson was valued at 745,000 pounds on 31st May - equal to 5.9% of its net assets - however the value of this stake upon the suspension of Dawson's shares earlier this month was closer to 240,000 pounds. Dawson's demise follows almost a decade of declining performance and an inability to keep its burgeoning pension deficit under control. Leeds Group shares slipped by 0.375p to 15.375p. Investment banking and corporate finance business Marchale Capital (MAC) issued some positive results for the year to March, the business moving from a 26,291 pound loss in 2011 to a 17,664 pound profit as outgoings were cut and sales jumped 10% to 694,400 pounds. During the year the company completed 13 transactions, six of which generated, in addition to the usual cash fees, equity, equity options and warrants. Following a year of strong progress on the back of tough market conditions, the directors believe the company is starting to develop a leading reputation for advisory services, particularly to the renewable, consumer and leisure sectors. Marchale shares closed 0.125p higher at 1.375p. 
Baobab Resources (BAO) now believes that the iron ore at its Tenge asset in Mozambique can be upgraded to smelter-feed specification through crushing and dry magnetic separations. The development follows the continuation of metallurgical and benefication test work at the 85% owned prospect, part of its pre-feasibility study to determine its commercial potential. The business noted that the simplification of the benefication process, by eliminating milling, wet magnetic separation and agglomeration stages, will significantly reduce the initial capital expenditure burden. Baobab shares climbed 0.875p to 10.75p. In his letter to shareholders, Kevin Foo, Chairman of Victoria Oil and Gas (VOG), issued an update on how its 95% owned Logbaba project in Cameroon is now substantially derisked. The company has now commissioned the initial 4km section of pipeline to central Douala, and has make its first delivery of gas to a customer in the Magzi industrial estate. Foo added that with continuous production operations there is a lot to look forward to. The shares rose 0.275p to 2.45p. Shares in Orchid Developments Group (OCH) halved by 1.625p to 1.625p as the Bulgaria-focused residential property developer admitted it can no longer stay afloat unless additional capital is raised. The economic environment in which the business is operating remains 'extremely difficult', resulting in free cash flow in the short and medium term remaining very difficult to predict. Meanwhile, the sale of a significant asset which management had recently anticipated did not go ahead as expected. The board is currently considering the best manner in which to address its immediate working capital needs. | 
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