From UK-Analyst.com: Friday 4th January 2013
The Markets Car sales in the US rose by 13.4% to 14.5 million in 2012 - the best year for the industry since 2007. Sales were boosted by the recovering economy and increased availability of credit. Volkswagen saw the biggest jump in sales in the country with an increase of 35%, while Japanese cars in general did particularly well. Jim Lentz, chief of Toyota Motor Sales in the US, said, "As we move into 2013 and the market sees continued growth we expect to outperform the industry with another nine product launches on the horizon." Meanwhile, retail sales in Germany grew by 2.1% in 2012 according to the Federal Statistical Office despite the Eurozone debt crisis. Germany has mostly escaped the worst effects of the crisis that has plagued the 17 nation block in recent years and unlike most of its EU partners the country's economy grew for most of 2012. Back in the UK, activity in the service sector fell for the first time in 2 years in December adding to fears that the UK may be sliding back into recession. The PMI services index from Market/CIPS fell to 48.9 in December, down from 50.2 in November. This comes after the UK emerged from a double dip recession last summer with growth of 1% in the three months to September. Chris Williamson, chief economist at Markit said "The first fall in service sector activity for two years raises the likelihood that the UK is sliding back into a recession" At the London close the Dow Jones was up by 21.12 points at 13,412.48 and the Nasdaq fell by 7.71 points to 2,742.55. In London the FTSE 100 increased by 42.50 points to 6089.84; the FTSE 250 finished 43.65 points up at 12,694.90; the FTSE All-Share gained 14.44 points to 3184.70; and the FTSE AIM Index crept up by 1.81 points to 718.98.  Broker Notes Canaccord Genuity reiterated its "buy" recommendation on equipment rental group Ashtead (AHT) with a target price of 433p. The broker is impressed that rental revenue growth at the firm's Sunbelt business is growing faster than originally forecast and believes that Sunbelt, a business which makes up 85% of the group's EBITDA, continues to gain significant market share. The broker goes on to state its admiration for the positive impact of the group's investment in its fleet. The shares fell by 1.1p to 435.7p. Panmure Gordon maintained its "buy" stance on Asian Plantations (PALM) with a target price of 380p. The broker believes 2013 will be a year of significant development for the developer of palm oil plantation land and sees its newly opened mill as a vehicle which will deliver a ten-fold increase in revenues. The broker envisages high demand for the shares this year, potentially generating interest from Malaysian pension funds and larger industry players. The shares remained flat at 230p. N+1 Singer reiterated its "buy" recommendation on kitchen appliance supplier Aga Rangemaster (AGA) with a 13% increase in target price to 95p. The increase in target price from 84p comes on the back of a prospective price earnings ratio of 9 times for 12 months time. Despite trading at a substantial discount to the wider appliance market, according to the broker, there is room for this to narrow on evidence that the top line is growing. The shares climbed by 6p to 78.75p. 
Blue-Chips Engineering giant Rolls Royce (RR.) has secured a 52.2 million dollar (32.54 million pounds) contract to support AE 1107C engines for V-22 aircraft which are operated by the US Marine Corps and Air Force. Under the agreement Rolls Royce will provide repair and support services and the majority of work will be carried out at facilities in Indianapolis, Indiana and Oakland, California. This contract builds upon an already strong relationship between the firm and the US military. The shares jumped by 6p to 918p. Mining firm Anglo American (AAL) has secured the sale of its 70% interest in the Amapa Iron Ore operation in Brazil to Zamin Ferrous Ltd with the terms of the deal not being disclosed. This follows the announcement by the company in June 2012 that it was exploring the possibility of divesting its interest in the site. Since Anglo American acquired the site in 2008 it has overseen a production increase from 1.2 Mt in 2008 to 4.8 Mt in 2011. The shares fell by 12.5p to 2,002p. 
Mid Caps Infrastructure group Balfour Beatty (BBY) has been awarded a five year maintenance contract worth 150 million pounds by Wiltshire Council. The specifications of the agreement include highway maintenance, grass cutting, litter collection and street lighting. Previously this work was undertaken by four different companies, with Balfour Beatty responsible for the street lighting only. The decision was revealed yesterday in a cabinet meeting but is still subject to formal legal procedures. The shares were up by 6.1p at 288.2p. Travel operator TUI Travel (TUI) posted a 2% decline in revenues to 14.46 billion pounds for the year ended 30th September 2012 but reported an 8% increase in underlying pre-tax profits to 390 million pounds. The increase in profitability was driven by the group expanding its "unique" holidays portfolio which book earlier and provide higher margins. Business in the UK did particularly well over the year as underlying operating profit increased by 32% to 197 million pounds. The shares were down by 2.1p at 286.9p. 
Small Caps & AIM Online travel group Travelzest (TVZ) posted a reduced pre-tax loss of 1.6 million pounds for the year ended 31st October after reporting a loss of 2.9 million pounds the previous year. This narrowing of losses came despite a 5.1% fall in revenues to 24.1 million pounds. The overall improvement in performance was attributed primarily to lower promotion costs. The shares remained flat at 0.05p. Surveillance technology provider Digital Barriers (DGB) has secured 1,050,000 pounds worth of new contracts for its products. Firstly, it has secured a 400,000 pound contract with a "major US government agency" to support its existing video technology products. Secondly, the firm has agreed a 300,000 pound deal with an unnamed US consumer for products based on its ThruVision passive screening technology. Lastly, a 350,000 pound agreement has been struck with a UK based firm working in specialist sectors in the Middle East for the same ThruVision passive technology. The shares increased by 6p to 162p. Oil and gas exploration company Magnolia Petroleum (MAGP) has acquired 985 net mineral acres in Montana for a cash consideration of 546,000 dollars (340,000 pounds). The acquired land is in the Montana section of the Bakken/Three Forks Sanish formation bringing the total acreage acquired in the district to 7,866. The company has undertaken the acquisition in attempt to significantly increase production potential from the Bakken/Three Forks Sanish formation. The shares lost 0.15p to 3.725p. 
Mining firm Eurasian Resources (ENRC) announced that its exploration license at Monchetundra in the Kola Peninsula area of Russia has been extended for another year up until December 2013. The extension was granted to enable the company to continue to progress the exploration work at the site in an attempt to gain a production licence by the end of the year. In recent years, traces of gold, platinum , palladium, nickel and copper have been found to be present at the site. The shares slipped down by 0.9p to 304.6p. Business support services company Johnson Service Group (JSG) announced that it expects its results for the year ended 31st December 2012 to be in line with market expectations. The firm also revealed that its net debt should now be under the 59 million pounds mark, lower than expected, positively impacted by the disposal of its Alex Reid dry cleaning business for 2.1 million pounds last month. The shares grew by 0.02p to 0.39p. Bio energy fuel company Gem BioFuels (GBF) released an announcement in the afternoon stating that the company was not aware of any reason for the sudden upwards share surge of 92% in the morning. Separately the company added that, as first announced last week, it is still completing a subscription for new ordinary shares, further details of which will be published next week. The shares rocketed by 0.63p to 0.93p. | 
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