| From UK-Analyst.com: Tuesday 18th June 2013 IMPORTANT: Are your UK-Analyst emails being delayed? Add UK-Analyst@news.t1ps.com to your safe senders/contact list to help resolve the problem The Markets Plans for "the biggest bilateral trade deal in history" between the EU and the US have been announced by Prime Minister David Cameron, with negotiations set to begin next week. Under the new deal, it is expected that trade tariffs will be eliminated and regulations across a broad range of industries will be synchronised. However, there have been some initial objections, with France adamant that the nation's film industry should be excluded from the treaty. Nevertheless, US President Barack Obama is hopeful that regardless of the "sensitivities on both sides", a "high standard comprehensive agreement" can be achieved by the end of 2014. UK inflation increased by more than forecast in May, in an uplift driven by a rise in air fares and a hike in the cost of fuel. The rate of Consumer Price Inflation (CPI) increased from 2.4% in April to 2.7% in May - still below the Bank Of England's prediction of a 2.9% average rate over the second quarter but well above the Banks' long-term 2% target. Economists do not seem to be to concerned with the discrepancy between the actual rate and the long-term target, with Ross Walker, an Economist at Royal Bank of Scotland, commenting, "Looking over a two or three month horizon, which I think you have to do, the inflation picture is a little better. But it is still above target and still a little bit sticky." Car sales in Europe for May fell to their lowest level in 20 years, with most of the major markets suffering. According to figures from the Society of Motor Manufacturers and Traders, sales were down by 5.9% against May 2012 and at their lowest since 1993. Sales plummeted by 9.9% in Germany and 10.4% in France but revved 11% higher in the UK, the only major market to exhibit growth. The figures come amid growing unemployment and cut-backs combining to squeeze disposable incomes. Carlos da Silva of IHS Automotive commented, "May brought some worrying figures, notably for the German and French markets. It Seems as if April was nothing more than a bright spell in the horrendous European sky of car sales." 
At the London close the Dow Jones was up by 122.95 points at 15,302.80 and the Nasdaq grew by 28.23 points to 2,999.49. In London the FTSE 100 was up by 43.72 points at 6,374.21 and the FTSE 250 increased by 87.04 points to 13,994.39. The FTSE All-Share increased by 19.64 points to 3,364.40 while the FTSE AIM Index slipped by 3.12 points to 710.56.  Broker Notes Panmure Gordon retained its "buy" recommendation on outsourcers Serco (SRP) with a target price of 700p. The broker feels that the shares look interesting from a valuation perspective at present, with the discount versus rival Capita much larger than its historical average. Panmure goes on to argue that the strong balance sheet should also help underpin future growth prospects and therefore believes that the potential rewards more than outweigh the associated risks at present. The shares increased by 2.5p to 606p. N+1 Singer stuck with its "buy" recommendation on marketing group St. Ives (SIV) with a target price of 174p. The broker is impressed with today's trading update and feels that it is indicative of a company which is well on track. N+1 Singer feels that now is a particularly good entry point as the shares have dropped slightly since major shareholder Silchester sold some of its stake. The shares lost 10.25p to 138.75p. Shore Capital stuck with its "buy" recommendation on housebuilders Crest Nicholson (CRST), arguing that the shares continue to offer value despite their strong run since IPO back in February. The broker feels that the group will continue to benefit from improving market conditions in the South East of England. Furthermore, Shore Capital cites Crest's 2015F P/E ratio of 10.2 times as attractive given that it represents a significant discount to the sector average of 12.6 times. The shares inched up by 1.5p to 339.5p. 
Blue-Chips Temporary power provider Aggreko (AGK) expects results for the first half of 2013 to be in line with expectations, with revenues and trading profits predicted to be around 5% ahead of last year. Aggreko's local business, which accounts for around 60% of group sales, has seen revenues grow by 9%, with increased margins. However, Aggreko's Power Projects division grew revenues by just 1% and suffered from squeezed margins due to mobilisation costs incurred in Mozambique and the Ivory Coast. The shares fell by 39p to 1,752p. Premier Inn and Costa Coffee owner Whitbread (WTB) posted a 3.1% increase in like-for-like sales for the 13 weeks ended 30th May. The figures were boosted by a 8% jump in like-for-like sales at Costa as sales were driven by the prolonged cold period at the start of the quarter. The Lenny Henry-endorsed Premier Inn business also performed well, with like-for-like sales up by 2.7% as the business continued to grow its London estate. The update has had a mixed reception, with broker Shore Capital retaining its "buy" recommendation on the group, while Investec stuck with its "sell" stance. The shares climbed by 106p to 3,031p. Airline operator easyJet (EZJ) has agreed to acquire 35 current generation A320 Aircraft from Airbus for delivery between 2015 and 2017 under its existing agreement and 100 new generation A320neo Aircraft for delivery from 2017 until 2022, under a new agreement. The firm went on to explain that it had chosen to do business with Airbus because it offered a "a highly attractive price" and that it had "offered the best deal". The new aircraft will be used to replace ageing aircraft but will also help in delivering on the group's strategy of growing capacity by 3-5% per year. The shares flew upwards by 27p to 1,279p. Mid Caps Construction firm Galliford Try (GFRD) declared that it has been chosen by Manchester Airports Group for its new Capital Delivery Programme in a deal that, according to the firm, could be worth up to 500 million pounds over the next five years. The contract initially runs for 3 years but includes two potential 12 month extensions. Under the deal, Galliford Try will complete building and infrastructure works at airports such as Manchester, Stansted, East Midlands and Bournemouth. The shares lost 8p, finishing the day at 926p. SDL (SDL), "a leader in Customer Experience Management solutions", conceded that its trading performance for the first half of 2013 has remained below its expectations. Subsequently, SDL has warned that profit before tax for the current financial year is likely to come in at around 15-20 million pounds, well below the 35.5 million pounds it generated in 2012. The software group blamed the macro-economic climate for a downturn in its language division and pointed the finger at a lack of sales and marketing for a slump in its technology arm. The shares plummeted by 115p to 271p. Defence technology firm Chemring (CHG) announced an 11% fall in revenues to 297.44 million pounds for the 6 months ended 30th April, swinging the company into an 8.8 million pounds loss before tax after it recorded a 19.7 million pound profit in the previous year. Chemring attributed this deterioration in performance to lower revenues and profits from its Countermeasures and Pyrotechnics & Munitions operations, which suffered from production delays. Looking ahead, the group also warned that it expects the global defence market to continue to contract over the next two years, driven by reduced defence budgets and the withdrawal of US troops from Afghanistan. The shares inched up by 0.9p to 266.6p. Small Caps Independent stockbroker Share (SHRE) claimed that it has had a strong start to the year, performing above its initial expectations over the period. The group cited improved investor sentiment as a driver for its performance while a 1% increase in market share to 7.19% indicates that it has outperformed the recovering sector. Separately, the group confirmed that Sir Martin Jacomb will step down as Chairman at the end of the year and will be replaced by founder and CEO, Gavin Oldham. Shares in Share inched up by 1p to 24p. Scientific camera manufacturer Andor Technology (AND) has warned that it expects this year's second half performance to be below current expectations. The company explained that market conditions have continued to be challenging since it last updated the market in April, particularly in relation to obtaining funding to support scientific research. The company admits that this "represents a revision to its growth plan" but stressed that it remains confident in the longer term prospects of the group. The shares plunged downwards by 67.25p to 295p. Surface coating specialist Hardide (HDD) announced an 18% fall in turnover to 1.26 million pounds for the 6 months ended 31st March 2013, swinging the company into a loss of 102,000 pounds after it generated a pre-tax profit of 201,000 pounds in the previous year. Hardide revealed that its results had been materially affected by a sudden decrease in business from one major customer. Management went on to try and convince investors that these results only represent a "short term dip" in its progress. The shares slipped by 0.025p to 1.2p. Housebuilder Mar City (MAR) has signed three further contracts with Mar City Developments Limited (MDL) worth a combined 5.8 million pounds. The work includes building houses/apartments in Birmingham, Coventry and Leicester and is expected to be complete by the end of next year. As the two parties have common directors, the contracts are deemed to be related party transactions under AIM Rules. The shares plummeted by 2.75p to 8.625p. Electronics group Solid State (SSP) announced a 22% increase in revenues to 31.5 million pounds for the year ended 31st March, while pre-tax profits were up by 17% at 1.87 million pounds. The group explained that that the results benefitted from an increase in market share in its Steatite business, as well as a 3.5 million pound export contract. As a result of its success, management recommended a 10% uplift in dividend to 8p a share. The update was adequate enough for analysts at WH Ireland to re-iterate their "buy" recommendation on the group and 285p target price. The shares jumped by 5p to 230p. Oil and gas explorer Nighthawk Energy (HAWK) revealed that production has commenced from its Taos 1-10 well in the Arikaree field in Colarado, with initial production rates between 400 and 500 barrels a day. The group also confirmed that the other two producing wells on the Arikaree field, Steamboat Hansen and Big Sky, continue to produce around 700 barrels per day combined. The update prompted broker Westhouse Securities to retain its "buy" recommendation on the group with a target price of 10.7p. The shares crept upwards by 0.35p to 5.79p. | 
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