| The Markets Italy's GDP contracted by 0.8% quarter-on-quarter in the three months to June, 10 basis point more than previously expected, as the country saw a drop in consumer spending. This is the fourth quarter of contraction on the trot for the Euozone's third largest economy, as it struggles to cope with austerity measures imposed by the government. Meanwhile, Chinese exports grew by 2.7% in August, year-on-year, falling short of market expectations of 2.9%. Additionally, the country saw imports shrink by 2.6%, signifying that China is also beginning to cut back on its spending. At the London close the Dow Jones was up by 7.76 points at 13,314.40 and the Nasdaq was down by 12.44 points at 2,812.67. In London the FTSE 100 fell by 1.60 points to 5,793.20; the FTSE 250 finished 33.49 points ahead at 11,841.50; the FTSE All-Share lost 0.14 points to 3,023.85; and the FTSE AIM Index climbed by 2.48 points to 699.93. 
Broker Notes Singer Capital reiterated its "buy" recommendation for Debenhams (DEB), with an increased target price of 122p, from 108p. The broker noted that the department store chain achieved good cash generation during the economic downturn and believes that the firm has a unique business development model. Singer forecasts that the successful implementation of the group's growth strategy could increase profits by between 32 and 34 million pounds over the next three to five years. The shares slipped by 0.4p to 100p.  Hybridan initiated coverage of Fitbug Holdings (FITB) with a "buy" rating and 2.6p target price. The health and fitness company has completed its transition from a conglomerate into an B2B business, which the broker believes is easily scalable in the 3.7 trillion dollar (2.3 trillion pound) US market. Hybridan forecasts the firm to achieve profitability in 2014 as it wins deals with large healthcare companies, noting that it already has contracts with The Vitality Group and Healthrageous. Fitbug shares were unchanged at 1.375p. Canaccord Genuity maintained its "buy" recommendation for Dart Group (DTG) with a 118p target price. The broker said that the aviation services firm was trading in-line with expectations, with higher capacity compensating for weaker margins. The broker added that the firm's Jet2.com business is likely to benefit from the demise of BMI Baby. Canaccord forecasts pre-tax profits of 30 million pounds for both the 2013 and 2014 financial years, with the shares trading on a prospective earnings multiple of just 4.8 times. The shares edged down by 1.4p to 308.9p. Blue-Chips Despite complaints from Qatar Holdings, Glencore (GLEN) said that its offer of 3.05 shares per existing Xstrata (XTA) share is final. Xstrata had previously leaked the proposed offer increase on Friday, although Glencore had declined to comment at the time. The mining giant noted that the offer represented a substantial premium, with the shares trading at an exchange ratio of 2.4 times on Wednesday 5th September, the last business day before speculation began. Shares in Glencore declined by 8.05p to 370p while those of Xstrata grew by 12.5p to 1,026.5p. 
Food ingredients manufacturer Associated British Foods (ABF) announced that it expects second half adjusted operating profits to be in-line with market expectations, but noted that it incurred a 100 million pound, non-cash, charge for impairment to equipment at its meat factory in Australia. The group reported strong sugar sales in Europe, with production rising some 30% to 1.3 million tonnes and higher prices. However, the firm noted weaker trading in China, with lower prices resulting in revenues falling year-on-year. Meanwhile, the firm said that it expects to see full year sales growth of 17% from its Primark clothing retail chain, with strong demand in both the UK and mainland Europe. The shares slid by 26p to 1,280p. BG Group's (BG.) chief financial officer, Fabio Barbosa, has taken a medical leave of absence and is undergoing treatment in Brazil. The oil and gas producer added that its financial controller Den Jones will take over Barbosa's responsibilities on an interim basis. The company did not reveal details of Barbosa's condition, but noted that Jones is likely to retain the position for the remainder of the year. BG shares inched up by 10.5p to 1,280p. Mid-Caps Reinforced polymer manufacturer Fenner (FENR) said that it has performed in-line with market expectations, with growth in its Southern Hemisphere and European operations compensating for a weak performance from the US coal market. The group made three bolt-on acquisitions during the year ended 31st August, for its advanced engineered products division, in order to expand its presence in the oil and medical sectors. The shares gained 3.5p to 364p. 
Galliford Try (GFRD) has won 100 million pounds worth of affordable housing development contracts, primarily in East London. The largest deal is for 52 million pounds and involves the redevelopment of the old St Clement's hospital site in Mile End, with the construction of a minimum of 223 homes. Other contract locations include Worcestershire, Blyth and Bristol. The shares lost 3p to 670p. Property investor Hansteen Holdings (HSTN) has acquired three industrial units in Germany, for a cash consideration of 26.2 million pounds, while also disposing of its holding in Leinfelden and Building 110 in Offenburg for a combined sum of 8.4 million euros (6.7 million pounds). The group noted that the new properties provide rent of 2.7 million pounds per annum, giving a yield of 10.3%. Separately, the firm said that it has bought a 26 acre multi-let estate in West Horndon near London, which currently has 43 tenants and a vacancy rate of 32.94%. Hansteen shares rose by 0.8p to 79.5p. Small Caps, AIM and PLUS Shares in Chariot Oil & Gas (CHAR) collapsed by 65.25p to 33p after it reported that the Kabeljou exploration well in offshore Namibia failed to encounter commercial levels of hydrocarbons after drilling to a total depth of 3,150 metres. The well successfully penetrated the Nimrod delta, but it contained fewer resources than the group had originally expected. The well will now be plugged and abandoned and with its flagship prospect proving to be a bust, the firm has some serious thinking to do. SpaceandPeople (SAL) achieved consolidated pre-tax profit growth of 294% to 382,000 pounds for the six months ended 30th June, on revenues rising 19% to 12.5 million pounds, year-on-year. During the period, the marketing company secured contracts with a number of large clients, including Land Securities (LAND) and Capital Shopping Centres (CSCG). The firm's cash position declined by 595,000 pounds, to 555,000 pounds, which it attributed to greater working capital requirements for more long-term projects and the payment of a 564,000 pound dividend. The shares jumped by 7.5p to 79p. Insurance industry investor Tawa (TAW) is looking for a potential buyer, alongside its ongoing strategic review. The group said that this would allow it to benchmark the value that could be created against an immediate offer for the business. The decision may well be a response to a rather dire 2011 performance, when the group suffered a loss of 21.6 million dollars (13.5 million pounds), incurring insurance claims of 84.6 million dollars (52.9 million pounds). Tawa shares climbed by 1.5p to 43.5p. 
DQ Entertainment (DQE) has signed a global promotional partnership with fast food chain Burger King, which will begin in the summer of 2013. The deal will involve in store marketing campaigns, including toys based on "The Jungle Book" animated television series. The TV programme developer noted that the show aired in a number of countries, including the US, UK and Germany. The shares swelled by 1.5p to 36.5p. 
The Jungle Book Advisory firm Lighthouse Group (LGT) has secured a three year contract with the Bakers Food and Allied Workers Union, which has 23,000 members across the UK. The deal follows on from another three year contract to provide advisory services to the Royal College of Nursing, awarded in September, which has over 400,000 members. Lighthouse shares leapt by 0.5p to 4.875p. Continental Coal (COOL) has received a non-binding offer for its South African mining portfolio, including the Vaalbank and Leiden projects, and hopes to finalise the deal by the year end. The group added that following the completion of its phase 1 drilling program in Botswana, which discovered 2.2 billion tonnes of JORC compliant resource, it has received interest from companies looking to acquire an interest in the project. The firm noted that if these deals are successful it will have sufficient funds to meet working capital requirements for the next 1-2 years. The shares gained by 0.15p to 3.4p. | 
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