| The Markets It was bad news from the UK, as both Industrial and manufacturing production figures came in lower than expected at -1.2% for August, year-on-year. Additionally, the trade deficit widened to 4.2 billion pounds, from 1.7 billion pounds, according to figures from the Office for National Statistics. Meanwhile, on a visit to Athens, the German chancellor Angela Merkel voiced her support for Greece, claiming that the debt ridden nation is making positive steps towards a recovery. The announcement came as Greece prepares to introduce 13 billion euros (10.5 billion pounds) worth of new spending cuts in order to qualify for another bailout package. At the London close the Dow Jones was down by 88.16 points at 13,495.49 and the Nasdaq was down by 43.30 points at 2,743.62. In London the FTSE 100 fell by 31.49 points to 5,810.25; the FTSE 250 finished 62.87 points behind at 11,911.76; the FTSE All-Share lost 18.94 points to 3,032.68; and the FTSE AIM Index climbed by 2.13 points to 703.65. 
Broker Notes Shore Capital reiterated its "sell" recommendation for WM Morrison Supermarkets (MRW), raising concern that Aldi is well positioned to capture its market share. The broker provided an example of Aldi's new store opening in West Kirby, while noting that the Morrison's store in the region has no room to expand. Shore also believes that the supermarket chain is hampered by the lack of a reward scheme, giving it less consumer insight than its peers. Morrison shares declined by 5p to 278.9p.  Panmure Gordon downgraded its stance on Capita (CPI) from "hold" to "sell" with a reduced target price of 620p, from 775p. The broker noted that the outsourcing group's shares trade at a significant premium to its peer group, but warned that its above average margins will be difficult to maintain. Panmure said that the firm has undertaken an aggressive acquisition strategy, having spent 170 million pounds so far this year and believes that total expenditure could reach between 200 and 250 million pounds. The shares fell by 28.5p to 740p. Blue-Chips Barclays (BARC) has agreed to buy the deposits, mortgages and assets of ING Direct UK and will integrate it into its existing UK retail and business banking division. The target's deposit book stands at 10.9 billion pounds, with a mortgage book of 5.6 billion pounds, as at 31st August 2012. The bank noted that the mortgage book is being purchased at a 3% discount while the deposit book is being bought at par. The shares slipped by 0.8p to 221.55p. 
Mining giant Rio Tinto (RIO) warned that there are still high levels of uncertainty in the short term macroeconomic outlook, but remains confident in long-term stabilisation. In order to compensate in the mean time, the firm announced plans for further cost reductions, having already saved 500 million dollars (311.9 million pounds) per year. The group also noted that iron ore prices have seen a partial recovery since a sharp decline earlier in the year, but pointed out that around 100 million tonnes of production has been unprofitable. Rio Tinto shares advanced by 45.5p to 3,030p. Pennon Group (PNN) will buy paper processing company Pulp Friction for a consideration of 9 million pounds, in a move which is expected to enhance its presence in waste management activities. The target processes around 100,000 tonnes of paper per year and the acquisition is forecast to be earnings enhancing in the first full year of operations. The shares leaked by 9p to 724.5p. Mid-Caps Recruitment agency Hays (HAS) reported a 4% decline in net fees, year-on-year, for the quarter ended 30th September as continued contraction in the UK, Ireland and Asia Pacific overshadowing growth in Continental Europe and the rest of the world. Like many of its peers, the firm suffered from significantly reduced demand for permanent placements, with fees falling by 11%. Broker Seymour Pierce moved its stance from "hold" to "buy" on the announcement, believing the business "has a more resilient business model compared to Michael Page given its more balanced temp/perm exposure". Hays shares jumped by 4.3p to 79.5p. 
In order to enhance its presence in the digital market, Informa (INF) has agreed to buy Zephyr Associates for a cash consideration of 62 million dollars (38.7 million pounds) in cash. The publishing and exhibition company noted that the target serves over 800 customers in the investment management sector and expects the acquisition to be earnings enhancing from 2013. The shares crept down by 2.8p to 401.9p. Inmarsat (ISAT) announced that it performed in-line with expectations during its third quarter ended 30th September, installing 2,100 net Fleet Broadband terminals, bringing the total to 32,000. The mobile satellite company also noted that it secured a number of new contracts for its XpressLink product and that trading momentum across its other product ranges had continued on from the second quarter. Inmarsat shares declined by 9.5p to 572p. Small Caps, AIM and PLUS Conroy Gold & Natural Resources (CGNR) has discovered two new targets at its Slieve Glah site in Ireland, covering 3 kilometres in length, and enlarged the area of two existing gold targets by a further 1 kilometre. The firm noted that tests performed on soil samples revealed that the gold content ranged from 4 parts per billion (ppb) to over 300 ppb. The shares surged by 0.125p to 1.325p. Oil and gas engineering services group Plexus Holdings (POS) said that trading since the end of March has been ahead of expectations, as it saw rising demand for its high pressure/high temperature wellhead products. During the period, the firm continued to expand its business, with more consulting partners to its HGSS subsea wellhead design and securing a licensing agreement with Breda for the supply of equipment. The company now believes that its full year profits will be well ahead of previous consensus forecasts. Plexus shares soared by 22.5p to 172.5p. Motive Television (MTV) has successfully launched its TV Anytime Anywhere platform across the United States, providing on-demand video to a set-top boxes and mobile devices. The TV software developer said that its technology allows users to download content from set-top boxes into portable devices, eliminating buffering interruptions and reducing bandwidth requirements. The shares leapt by 0.01p to 0.05p. 
Utility cost management consultant Utilitywise (UTW) reported proforma pre-tax profit growth of 23% to 4.3 million pounds for the year ended 31st July 2012, on revenues rising 25% to 14.6 million pounds. The group saw the number of contracted meters rise 33.4% to 20,013 and increased its headcount by 48 to 181. Separately, the firm announced that it has appointed Michael Dent as its new Sales and Marketing Director, who joins the company from a similar position at Total Gas & Power. Utilitywise shares swelled by 8p to 86.5p. dotDigital Group (DOTD) reported revenue growth ahead of market expectations for the year ended 30th June, up by 34% to 12 million pounds, with cash reserves rising to 4 million pounds, from 2.5 million pounds. However, investors were disappointed to hear that the firm expects to see a modest decline in revenue growth for the 2013 financial year as it plans to increase investment in long term growth. The shares dropped by 1.125p to 11.75p. Network monitoring company Endace (EDA) expects to announce revenues of 19.2 million dollars (12 million pounds) for the six months ended 30th June, up 3% on 2011's comparable period. The group said that it made good progress towards its goal of increasing recurring revenues, which rose 16% year-on-year. The firm noted that its international revenue mix remained unchanged, with 60% coming from North America, 30% from Europe and 10% from Australasia. Endace shares grew by 7.5p to 285p. | 
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