| The Markets The Office for National Statistics reported a 13.1% drop in construction activity in the UK this September compared with the same month in 2011. In particular, there were big drops in new buildings in both the commercial and public sectors, with house building down 12% on a year ago. In Europe, the German finance minister, Wolfgang Schauble, has asked a panel of advisors to look into possible reform proposals in France, cautious that weakness in the Eurozone's second largest economy could come back to haunt Germany and even the rest of Europe. This comes amid fears in Germany that there has been a lack of action in France regarding labour market reforms. Over in China, the world's second largest economy, there was more of a positive slant on economic figures as factory output rose by 9.6% and retail sales grew by 14%. This domestic growth consumption is key for China, as demand for its exports has considerably slowed as the markets in the US, Europe and Japan have all suffered. At the London close the Dow Jones was up by 30.93 points at 12,842.35 and the Nasdaq was up by 24.04 points at 2,596.61. In London the FTSE 100 fell by 6.37 points to 5,769.68; the FTSE 250 finished 53.24 points down at 11,842.42; the FTSE All-Share dropped 4.87 points to 3,014.98; and the FTSE AIM Index decreased by 3.15 points to 693.50. 
Broker Notes Seymour Pierce maintained a "buy" recommendation on WH Smith (SMWH) with a target price of 720p. The broker notes that WH Smith's shares always tend to underperform at this time of year and thinks the retailer, along with the high street in general, is well positioned for Christmas with a much better book release schedule this year than in 2011. This, coupled with 10% growth in profit before tax in the last financial year and the momentum that illustrates, is used as justification for the brokers "buy" stance. The shares were down by 4p at 606.5p Canaccord Genuity reiterated its "buy" recommendation on video search engine Blinkx (BLNX) with a target price of 107p. The broker believes that online video is one of the most dynamic and fastest growing areas of digital media, driven by fundamental changes in the format and consumption of data and video content. Spending on online video advertisements is forecast to treble over the next four years to more than 9 billion pounds and Canaccord believes that Blinkx is well positioned to exploit this. The shares remained flat at 68.25p. 
N+1 Singer kept to its "buy" recommendation on landlord Grainger (GRI) with a target price of 145p. The broker is impressed with the way the company has recently reduced its net debt despite challenging market conditions, especially for its German operations. The broker also notes the firm's strategy to improve fee income, which should lead to improved returns on capital. The shares gained 1.8p to 115.3p. Blue-Chips International Consolidated Airlines (IAG) reported a 25% dip in operating profits to 270 million euros (215.5 million pounds) for the nine months ended 30th September 2012. Although passenger revenue was up by 9.1%, the primary driver of the drop in profits was a hefty 23.5% increase in fuel costs to 4.633 billion euros (3.7 billion pounds). The British Airways and Iberia operator also experienced a rise in non-fuel costs such as industrial action, which helped to dent profits even further. As a result , the firm is planning to cut 4,500 jobs at Iberia in an attempt to improve efficiency and profitability. The shares were up by 2.6p at 170.6p Property group Hammerson (HMSO) announced has completed the transition from an office property manager to a retail property manager after selling 627 million pounds worth of office property and investing in 551 million pounds worth of retail property. The firm had a 97.3% level of occupancy as at 30th September this year and UK tenant sales increased by 3.2% in the period 1st July to November 8th, boosted by good performances in the Bullring shopping centre in Birmingham and High Cross shopping centre in Leicester. The shares dropped by 0.5p to 467.5p. 
Rolls Royce (RR.) expects to deliver a good level of growth in full year profit, despite downgrading its revenue expectations for its marine operations amid delays. Since its half year results in July, the engine producer has seen some significant developments, including a $2.6 billion (1.63 billion pounds) contract with Singapore Airlines to power 20 Airbus A350s and 5 Airbus A380s. The shares gained 16p to 877p. Mid Caps Rentokil (RTO), the facilities management company and rat-catcher, reported a 2.2% increase in group revenue to 626.7 million pounds and a 9.9% increase in pre-tax profits to 36.3 million pounds for the three months ended 30th September 2012. However, the firm's City link courier business continues to make loss, impacted by a reduction in revenue per consignment as a result of an adverse customer mix and volume decline during the Olympics. The shares lost 1.05p to 87p. Platinum producer Lonmin (LMI) reported a 19% drop in revenues to 1.6 billion pounds, coupled with an operating loss of 702 million pounds for the year ended 30th September 2012. The deterioration comes as a result of the tragic events surrounding the Marikana miner's strike in which 47 people were killed in August this year. The estimated impact of the events was a loss of 110,000 ounces of mined platinum. The shares were up by 2.5p at 455.3p. 
Construction firm Galliford Try (GFRD) posted a 7% increase in sales in its house building division to 460 million pounds for the period 1st July 2012 to 8th November 2012, driven by an encouraging autumn selling season. The construction sector of the business reported a 1.6 million dollar order book, which is in line with expectations. This comes after the company has gone through a three year transformational plan focusing on improving margins .The shares increased by 9.5p to 734.5p. Small Caps, AIM and PLUS Visitor attraction business Paragon Entertainment (PEL) has opened its new licensed attractions at the Westfield Merry Hill Shopping Centre in the West Midlands. The attraction, occupying 20,000 square feet, includes features such as the "quest for adventure extreme" which will be the UK's highest indoor ropes course, including a 17 metre summit. Purpose-built rope, capable of withstanding the weight of a full-grown rhino, has been shipped in from America to create the indoor feature. The shares were flat at 6.75p. 
Quest For Adventure Graphite mining company StratMin Global Resources (STGR) announced the acquisition of the remaining 85% of shares in Graphmada Equity Pte Ltd not already owned by the company, for 25.5 million pounds, to be satisfied through the issue of new ordinary shares. The logic behind the acquisition is that global demand for graphite is increasing due to high end technology and green energy applications, as well as the scarce nature of the commodity. The shares remained flat at 5p. Residential property company Northacre (NTA) reported a break-even position for the first half of the year ended 31st August 2012. The company expects its developments to be fully sold by the end of the year as there are only 5 units unsold at present. The company's interiors business, Intaya, is making good progress having delivered several new show apartments at the Lancaster sites for the first half of the year. The shares went up by 3.5p to 75.5p. 
Engineering specialist Kentz (KENZ) revealed has been awarded a $45 million (28.25 million pounds) contract for the 75MWp Kalkbut Solar Photovoltaic Project in the Northern Cape area of South Africa. The project is scheduled to be completed in January 2014 and is a key step in the phase 1 of the South African Department of Energy's Renewable Energy IPP procurement Program. The shares fell by 1.5p to 391.6p. Wynnstay (WYN), the agricultural and specialist retail group, has acquired Banbury Farm & General Supplies Limited, a hardware and agricultural inputs supplier based in Oxfordshire for 650,000 pounds. Of this, 450,000 pounds is payable on completion and 200,000 is payable over the next two years. The acquisition gives Wynnstay a first physical presence in this prominent farming area. The shares decreased by 5p to 406p. Sefton Resources (SER) produced an average of 115 barrels of oil per day from its California project in October, compared to 108 barrels of oil per day in September. In addition, the oil and gas exploration firm reported that the drilling of a new water well is planned at its Tapia Canyon Oil Field in an attempt to raise production levels. The shares were up by 0.025p at 1.4p. Competition The UK-Analyst competition will return next week after we stock up our prize cabinet. | 
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