| From UK-Analyst.com: Friday 2nd August 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 Consistent with data released earlier this week that showed US GDP had grown by 1.7% over the April-June quarter, 162,000 jobs were added to the nation's economy in July. The pick-up in employment brought the unemployment rate down from 7.6% to 7.4% and shows that, like many global economies, the economic picture in the US is slowly improving. The figures - which actually mark the lowest level of hiring in the US since March - are unlikely to be enough to prompt the US Federal Reserve to cut back on its quantitative easing programme any time soon. A breakdown of the figures reveals that the job gains were mostly in lower-paying industries, such as retail, hotels and restaurants. Douglas Borthwick, Managing Director at Chapdelaine Foreign Exchange, said, "Any misconceptions that the Fed was looking to taper in September have been blown out of the water today after the nonfarm payrolls number disappoints to the n'th degree." According to a new survey by market research group Markit, the UK construction industry has hit its highest level of activity in over 3 years. The Markit/CIPS Construction Purchasing Managers' Index (PMI) rose to 57.0 in July from 51.0 the month before, powering well above the 50 mark which separates contraction and expansion. Residential construction has driven the growth, while commercial construction and civil engineering also swung back into growth in the month. Howard Archer, Chief European and UK economist for IHS Global Insight, commented, "More good news for the UK economy, with the construction sector seemingly increasingly shrugging off its long-term problems and now contributing to growth." A new study on the finances of people in the UK has uncovered some worrying truths on the state of their financial well-being. Research from the Money Advice Service has suggested that growing numbers of people are struggling to get by, with real income falling by over 6% since 2006. The figures also revealed that only 58% of us could cover a 300 pound unexpected bill, while one third of respondents did not understand the impact that inflation was having on their savings. Caroline Rookes, Chief Executive of the Money Advice Service, said, "This report reveals just how difficult it is at the moment for so many of us, but also highlights ways we are adapting to manage financially." 
At the London close the Dow Jones was down by 33.21 points to 15,630.32 and the Nasdaq inched up by 1.55 points to 3,127.85. In London the FTSE 100 was down by 34.11 points to 6,647.87 and the FTSE 250 grew by 70.76 points to 15,131.97. The FTSE All-Share slid by 14.14 points to 3,529.55 while the FTSE AIM Index edged up by 1.13 points to 723.83.  Broker Notes Beaufort Securities stuck with its "buy" stance on Fastjet (FJET), impressed with yesterday's July trading update. Results from the Africa focussed budget airline pleased the broker, with passenger revenues thought to be up around 10% despite the month coinciding with Ramadan - a period when travel and business activity traditionally tails off. On this basis, Beaufort remains optimistic that the company will be able to harness the strong growth potential in the African aviation sector and thus maintains a speculative buy rating on the stock. The shares soared by 0.21p to 1.26p. Panmure Gordon maintained its "buy" recommendation on estate agent operator Countrywide (CWD), increasing its target price from 600p to 700p. On the back of the interim results yesterday, the broker has increased its earnings estimates for the next couple of years as it envisages a pick up in both volumes and house prices. Panmure cites economic growth, government support measures and renewed bank lending as reasons for its positive upgrades and therefore sticks with its "buy" recommendation for now. The shares fell by 4p to 600.5p. Shore Capital retained its "sell" recommendation on Direct Line (DLG), despite the insurance firm reporting interims which were ahead of both the market and the broker's expectations. Shore Capital's concerns on the stock remain industry specific given the plethora of issues within UK motor insurance industry such as telematics, periodic payment orders and legal aid changes. Moreover, Shore Capital cites the group's reliance on ancillary income - which accounts for 32% of all revenues - as further reason for its sell recommendation. The shares climbed by 6.7p to 236.2p. ADVERTISEMENT Get free trading guides from Evil Knievil (How to successfully short stocks), Zak Mir (Top AIM market picks for 2013) and other top financial commentators by CLICKING HERE 
Blue-Chips Bookie William Hill (WMH) announced a 20% increase in revenues to 751.6 million pounds for the first 6 months of the year, while operating profits grew by 8% to 181.4 million pounds. William Hill - which has 2,400 stops in Britain - reserved special praise for its recent acquisition spree, which has included a deal to buy rival gambling company Sportingbet, giving it access to the Australian market. The group also attributed its success to its improved online offering as it attempted to attract the "recreational customer". The shares dropped by 36p to 458.5p. British Airways owner International Consolidated Airlines (IAG) revealed that it generated 245 million euros (212.8 million pounds) worth of operating profit over the April-June quarter compared to the 4 million euros (3.5 million pounds) loss it made last year. The primary driver in this improvement was the impact of the restructuring of Iberia, the group's Spanish Airline business, as IAG endeavoured to make the carrier more competitive against low cost rivals and high speed trains. The update comes a day after Deutsche Bank retained its "buy" recommendation and 330p target price on the group. The shares flew by 19.9p to 317p. Packaging giants Rexam (REX) announced a 1% increase in sales to 1.97 billion pounds for the first half of 2013 but underlying pre-tax profits slipped by 2% to 169 million pounds. Rexam explained that a combination of adverse weather conditions and poor underlying economic conditions In Europe came together to offset continued growth and a recovery in market share in the US. Looking ahead, the group re-affirmed its intention to grow its presence in emerging markets such as the Middle East, India and South East Asia. The shares were up by 9p at 515p. Mid Caps Satellite communications specialist Inmarsat (ISAT) announced a fall in pre-tax profits from $222.8 million (193.5 million pounds) to $185.5 (161.1 million pounds) for the six months ended 30th June. The company - which provides communications facilities to worldwide shipping and aircraft - blamed the ongoing defence cuts in the US for the shortfall. Looking ahead, the group admitted that it expects further contract losses before the end of the year and in 2014. In response to the update, Jefferies retained its "buy" recommendation and 750p target price on the company. The shares grew by 44p to 720p. Investment firm Man Group (EMG) declared that its assets under management fell by 8.8% to $52 billion (34 billion pounds) in the six months to June after fund redemptions and averse FX movements. Man Group explained that investors had pulled back on their investments, spooked by the renewed volatility in the markets in recent months. In fact, Man Group does not envisage any pick up in trading over the short term as management feels "Investor appetite remains muted as renewed market volatility tempers investors' willingness to put their money to work.". The shares increased by 7.95p to 91.5p. Car dealer Inchscape (INCH) reported a 6.6% increase in sales to 3.3 billion pounds for the six months ended 30th June, pushing pre-tax profits up by 10.7% to 147 million pounds. The group said that it benefitted from its geographical spread and also from the acquisition of Trivett, an Australian automotive group. Moreover, Inchscape claimed that it prospered as a result of a "strong sales and profit performance" in the Asia-Pacific and emerging markets. The shares swelled by 58p to 645p. Small Caps Cadson (CDY), the toy makers, posted a 23% increase in revenues to 6.49 million pounds for the year ended 30th June after the group managed to secure a high level of new business from the US. Cadson lauded its own performance at a recent trade fair where its discount offers for orders helped to boost sales by 40% on the previous year. Other trade fairs in Hong Kong, Nuernberg and New York were also apparently "lucrative" for Cadson. The shares jumped by 3p to 57p. Antenna specialist MTI Wireless Edge (MWE) narrowed its pre-tax loss from 401,000 pounds to 3,000 pounds for the six months ended 30th June. MTI cited the impact of increased demand from the military sector as a factor in the improvement - a revenue source which now accounts for 20% of all turnover. The firm did however admit that results could have been even better if it had not been for the ongoing court case issues in relation to Alvarion, a major customer. The shares edged up by 0.25p to 6.88p. Orange grower Asian Citrus Holdings (ACHL) warned that its turnover for the year ended 30th June is likely to be 20% below last year's levels, while net profit could be 40% below levels achieved last year. The company was keen to stress that any potential change in the value of its biological assets would be non-operational and would not have any effect on its cash flow for the year. The market now awaits the firm's full year results which are due to be published next monthly. The shares soured by 2p, finishing the day at 19.125p. 
Mobile financial services provider Vipera (VIP) has entered into a commercial agreement with KPMG Advisory Spa, a consulting company based in Italy. Under the terms of the deal, KPMG will integrate and market Vipera's mobile products with a view to commercialisation. Vipera management argued that KMPG's global reputation should help it to gain business from large financial institutions. The shares soared by 1.25p to 4.375p. Ultrasis (ULT), the mental health specialists, confirmed that its US joint-venture has secured a new contract with Park Center Inc, an Indiana-based Community Mental Health Service Provider. Ultrasis argued that, on the back of this deal, it now expects to see increased interest and further contracts in the short-medium term. The news comes a day after Ultrasis revealed that it entered a business partnership with the Cheshire and Wirral Partnership NHS Foundation Trust. The shares were up by 0.005p to 0.91p. | 
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