| The Markets UK inflation unexpectedly jumped by 0.2 percentage points to 2.6% in July, the Office for National Statistics reported, on the back of higher air fares and housing costs. A lower monthly drop in clothing prices also contributed to the jump in the Consumer Price Index, its first increase since March, which was contrary to analyst forecasts for a fall in the headline figure. On the other side of the English Channel, Eurostat confirmed the Eurozone shrank by 0.2% in the three months to June as growth of 0.3% in Germany failed to offset the shrinking economies of Greece, Italy, Spain and Portugal. While the 17-nation single currency region is not yet officially in recession - after reported zero growth for the first quarter of the year - the outlook for the second half of 2012 remains bleak. At the London close the Dow Jones was up by 39.69 points at 13,209.12 and the Nasdaq was up by 13.70 points at 2,742.38. In London the FTSE 100 rose by 32.90 points to 5,864.78; the FTSE 250 finished 67.49 points ahead at 11,504.30; the FTSE All-Share gained 17.43 points to 3,043.19; and the FTSE AIM Index climbed by 0.16 points to 682.55. 
Broker Notes Canaccord Genuity maintained its "buy" recommendation for Petra Diamonds (PDL) with a 183p target price. The broker feels that the stock has been significantly oversold, having fallen by 22.8% since 31st July, compared to peer Gem Diamonds (GEMD) which has fallen by just 2.4% over the same period. Canaccord noted that the company's mines were all performing as expected as at 31st July and that new guidance figures are scheduled for release on 15th August. The broker added that the firm remains well financed, with cash reserves of 37.4 million dollars (23.8 million pounds). Shares in Petra grew by 1.5p to 99.5p.  Seymour Pierce reiterated its "buy" recommendation for WH Smith (SMWH) with an increased target price of 670p, from 570p. The broker noted that the high street retailer has returned over half its market value to shareholders over the last five years. Seymour Pierce added that the group's business model is becoming more flexible as its travel division accounts for a larger portion of profits, while the high street division is benefiting from consolidation in the sector. The shares inched up by 2p to 574p. Panmure Gordon kept its "buy" rating for Travis Perkins (TPK) with an increased target price of 1,200p, from 1,050p. The builders merchant's strong performance in difficult markets has impressed the broker, Travis having reported top quartile operating margins for a number of years. Panmure noted that the firm achieved this through a combination of organic and acquisitive growth. With a number of its smaller competitors struggling, the broker believes that this is a good opportunity for the business to gain market share. Travis Perkins shares advanced by 13p to 1,094p. Blue-Chips CRH (CRH) reported pre-tax profits of 117 million Euros (92.2 million pounds) for the six months ended 30th June, up 23% on 2011's comparable period, driven by a strong performance in the US. However, operating profits in Europe crashed 43% to 34 million euros (26.8 million pounds), impacted by the heavy rain causing delays and the deteriorating Eurozone. The building materials firm continued its cost cutting strategy, claiming that it has made 2.1 billion euros (1.7 billion pounds) in cumulative annualised savings since 2007. The shares tumbled by 59p to 1,160p. 
Shares in insurance and savings group Standard Life (SL.) surged by 20.7p to 277.4p after it achieved pre-tax profit growth of 15% to 302 million pounds in the six months to June, with assets under administration rising by 2.9% to 204.2 billion pounds. The group enjoyed strong trading in the UK, where pre-tax profits rose by 62% to 141 million pounds, compensating for a decline in profits from Canada. In order to help turn around its Canadian business, the firm appointed a new divisional chief executive in February. AstraZeneca (AZN) has entered into a partnership agreement with US pharmaceutical group Pfizer for the global marketing rights of its gastroesophageal reflux disease treatment Nexium. Pfizer will pay the firm an upfront sum of 250 million dollars (159.3 million pounds) and AstraZeneca will receive royalty payments based on product launches and sales volumes. The group added that it exploring the possibility of forming similar agreements for its other prescription brands. The shares edged up by 19p to 3,012.5p. Mid-Caps Essar Energy (ESSR) announced that throughput at its Vadinar refinery increased by 24% for the quarter ended 30th June, to 4.48 million tonnes, benefiting from the completion of its expansion project. The power company generated a total of 1.94 gigawatt hours in the quarter, up from 1.50GWh in 2011's comparable period, as the 1,200MW capacity Salaya I plant came online. Essar shares slipped by 0.2p to 111.7p. 
Information management company SDL (SDL) reported first half pre-tax profit growth of 4% to 16.4 million pounds, on revenue growth of 20% to 133.6 million pounds. Sales growth was driven by the acquisition of marketing analytics firm Alterian, which generated revenues of 16 million pounds during the six months ended 30th June. However, the business warned that its European customers remained cautious due to the continued Eurozone crisis. The shares gained 10p to 667p. A weak Euro resulted in pre-tax profits at John Menzies (MNZS) falling by 14.5% for the six months to 30th June, year-on-year, to 18.3 million pounds, with sales down by 1.7% at 988.4 million pounds. The aviation and distribution business noted that five of its airline customers ceased operating during the period, costing the firm 7.7 million pounds per annum in revenues and added that the Olympics provided no significant boost to sales. Shares in John Menzies declined by 10p to 620p. Small Caps, AIM and PLUS The directors of Digital Learning Marketplace* (DLM) announced the signing of an agreement with a FTSE 100 company to produce a range of digital learning products with online and video content. These products will be distributed to major corporates worldwide, with the value of the two contracts already secured being in excess of 350,000 pounds. Management is confident that this partnership is the first of several that will be signed, each of which will bring in a number of orders valued over 100,000 pounds over the next six months. The shares surged by 0.0275p to 0.0875p. Healthcare Locums (HLO) shares jumped by 0.275p to 2.0875p on news the healthcare workforce outsourcing company believes charges made against it in the Supreme Court of the State of New York will have no grounding. The company has been fighting a long battle with a group of investors headed by Permian Master Fund that has taken legal action against Locums after it was revealed the firm misrepresented figures in its financial accounts. The only relation the company has with the US is that most of the prosecution is based there - the company shares are UK listed. In addition, Healthcare has been advised by the English Leading Counsel that any judgements made in the US would neither be recognised or enforceable in either the UK or Australia because of the lack of jurisdiction in the US. Pharmaceutical business ReNeuron Group (RENE) has made further progress with the clinical trials of its ReN001 stem cell therapy for disabled stroke patients, announcing it has advanced to the evaluation of a higher dose of the drug with the third cohort set of patients. The company decided to advance the trial after following up with the six patients treated with the drug, who experienced no cell-related adverse events or adverse immune-related responses to it. ReNeuron confirmed that the first patient in this third dose cohort of three patients has now been successfully treated with ReN001 and discharged from hospital with no acute safety issues arising. ReNeuron shares lifted 0.2575p to 3.475p. 
Eckoh (ECK), the speech recognition telephone systems business, has secured a two year contract with Morrisons owned Kiddicare, a UK focused baby products website, to provide card payment services over the phone. The agreement will see Eckoh supply its EckohPROTECT payment product, and is the second deal to be secured in quick succession through the new referral agreement with a global service provider announced in May. "Kiddicare is an excellent win for Eckoh in its own right but it also gives us the opportunity to showcase our capability to the wider Morrisons group" commented chief executive Nik Philpot. News that Obtala Resources (OBT) has received authorisation for its two outstanding forest concession applications from the Ministry of Agriculture in Mozambique sent shares in the natural resource investment company 0.25p higher to 15.5p. The concessions, covering a total land area of 117,618 hectares, are located within well-established forests of Cabo Delgado and Nampula provinces, with management plans indicating annual combined cutting volumes of 8,994 cubic metres. Manganese Bronze (MNGS) has been forced to delay the release of its half-year results for the six months to June due to accounting errors that have come to light. Thanks to a combination of system and procedural errors, arising from the installation of a new IT system in August 2010, a number of transactions in 2010 and 2011 were not properly processed. This problem led to the over-statement of stock and the under-statement of liabilities, the accumulative effect of which leaves the company 3.9 million pounds worse off than before. The firm also provided an update on 2012 trading, noting the year to date has been difficult, with the group continuing to trade at a loss. Manganese Bronze shares plunged by 8.5p to 16.5p. * Digital Learning Marketplace is a corporate client of Rivington Street Holdings, the ultimate owner of this website. | 
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