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"That said, those sectors which were able to continue showing some progress despite the difficult economic background also performed well: the portfolio benefited from strong performance in the housebuilding and non-life insurance sectors," the investment managers said, The poorest returns in the portfolio in the half year came from the mining sector where its holdings in Aquarius Platinum, African Barrick Gold and Petropavlovsk were hit by rising mining costs and falling platinum and gold prices. The net return on ordinary activities before tax in the half-year period was positive at £74.53m, of which £17.87m was revenue and £56.66m was capital appreciation. A year earlier, the group had reported a loss before tax of £15.63m with revenue of £15.88m more than wiped out by a £31.51m dive in the value of the portfolio. "Despite the ongoing macroeconomic uncertainty, equity markets have continued to move higher through the first half of the year, albeit on low volumes as investors have lacked conviction ahead of a resolution to the issues in Europe and lower global growth prospects. In this environment of low growth and investor uncertainty the board feel that there are likely to be opportunities for stock pickers to outperform and are confident that the strengthened management team's approach, which relies heavily on meeting and engaging with company management teams, will be well placed to benefit from such conditions," said the trust's Chairman, Hamish Melville. "The board continues to believe that UK mid and small cap equities remain attractively valued and will provide investors with solid returns over the long term," Melville declared.

The Mercantile Investment Trust, one of the oldest and largest investment trusts in the UK, showed a decent turn of foot for a 128-year-old company in the first half of the company's financial year. The trust, which aims to provide income and capital growth through opportunities in UK mid and small cap stocks, saw a net asset value total return in the six months to the end of July of 6.7%, four-fifths of a percentage point better than the return of the FTSE All-Share, the index against which it benchmarks its performance. Net asset value per share at the end of July stood at 1,176.5p, down from 1,209.5p a year earlier but up from 1,124.9p at the end of January 2012. During the reporting period, 95,000 shares were repurchased for cancellation at a total cost of £970,373. These purchases added around 1.3 pence to the net asset value (NAV) per share. The share price discount to NAV, with debt assessed at fair value, ranged between 9.8% and 14.6% in the period from February 1st, 2012 to September 14th, 2012, with an average discount during the period of 12.9%. The income received from investments in the first half of the current fiscal year was marginally above that of corresponding period of 2011, reflecting a gradual increase in dividend income for underlying investments. As for the trust's own dividends, a second interim dividend of 6.0p has been proposed, bringing the total dividend for the year to date to 12p. The board anticipates that there will be a third dividend of 6.0p paid in early February 2013. However, as in previous years, the board's decision on the generosity of the fourth interim dividend will depend on the level of revenue received. Mercantile benefited from takeovers for Cove Energy, Cable and Wireless Worldwide, Logica, Misys, Aegis and Nautical Petroleum.

ICAP, which on Wednesday warned of subdued trading levels in its core business, has bought CTI Shipbrokers (India) from Captain Jaideep Kapoor and Tradex Chartering & Trading Private Limited. The assets acquired have a gross value of $2.464m, the inter-dealer broker disclosed. CTI India's main business is in dry, tanker and sale and purchase broking. The acquisition provides ICAP Shipping with a subsidiary in India with offices in New Delhi and Mumbai employing 28 people.

Investment company 3i Infrastructure said European assets continue to perform well however difficult macroeconomic conditions and currency movements have hit the valuation of the 3I India Fund. Chairman Peter Sedgwick said: "European assets continue to perform well, while adverse macroeconomic conditions and foreign exchange movements continue to have a negative impact on the valuation of the 3i India Infrastructure Fund." He added: "The Investment Adviser continues to develop the pipeline of opportunities and has made good progress in the Thameslink transaction." The group, which invests in infrastructure projects worldwide, said its European portfolio generated income of £30.8m in the period compared to £36.8m the year before, with the decline mostly due to the lower dividend received from AWG. The mark-to-market valuation of Adani Power and the exchange rate between sterling and the Indian rupee were broadly unchanged September 26th 2012 from the last company statement. At September 26th 2012 the company had cash balances of £169.7m, up from £144.2m reported in the last interim statement, reflecting the investment activity, income and proceeds received and costs paid in the period. 3i Infrastructure expects to announce its half yearly results on November 8th 2012.

The firm also announced that its Accommodation & Destinations sector has acquired MalaPronta.com, which at the 2011 year-end had gross assets of £0.4m. The purchase is part of its strategy to build its offering and positioning globally particularly in the emerging markets. Full year results are due out on December 4th. The consensus estimate for full-year earnings before interest and tax (EBIT) is £480m and TUI's management is confident of achieving this despite foreseeing a large negative foreign exchange impact. Broker Jefferies Hoare Govett thinks that a weaker euro could hit fourth-quarter EBIT by up to £40m, implying underlying upgrades of 8%. Peel Hunt, meanwhile, thinks the group will have had a solid end to its trading year, with stable demand and pricing in all core markets with the exception of France.

In Germany, bookings are up 7% with long haul destinations performing particularly well, while booked load factor is currently 27%. In France, the company has re-mixed the programme by reducing capacity to long-haul destinations which tend to book earlier. As a result of this, volumes are down -26%, in line with its expectations and is, the group said, consistent with the booking patterns for the remixed offering. Booked load factor is currently 27%. In the UK, the company has seen early bookings for summer 2013, which are up 10% on the same period last year, "significantly" outperform the market, particularly for its differentiated product. Average selling prices are up 3%. Sales of differentiated product are up 15% compared with this time last year, accounting for 68% of holidays sold to date, up one percentage points on the prior year. To date 11% of the programme has been sold. Peter Long, Chief Executive of TUI, said: "We are very pleased with our summer 2012 performance, with most of our programmes now almost fully sold. High demand in the peak summer period, driven by our strategy of differentiated and exclusive product distributed online, has resulted in strong lates margins and load factors. "We remain on track to meet our full year expectations, with strong underlying trading offset by the impact of re-translation of fourth quarter Eurozone earnings. Our continued outperformance in a challenging macroeconomic environment demonstrates our robust strategy is delivering clear results."

Package tour operator TUI Travel has said it remains on track to meet its full year expectations, following strong trading in the summer high season, with improved margins and load factors versus the prior year. The summer 2012 progamme is now almost fully sold, with load factors ahead of the prior year in its major markets. The firm has fewer holidays left to sell than at this stage last year, which it said has allowed pricing levels to be maintained in the lates market with strong margins. The company also reported an "encouraging start" to the winter season, saying it has a strong differentiated product and online sales performance, particularly in the UK and Nordics. In the UK, bookings are up by 2% against a flat capacity. The average selling price is up 3%, partly reflecting the successful pass-through of inflationary cost increases of 2%. Booked load factor is currently 31%. Sales of differentiated product are up 9% compared with this time last year, accounting for 63% of holidays sold to date, up four percentage points on the prior year. Online sales continue to grow, accounting for 41% of winter holidays booked, up by four percentage points on the prior year. In the Nordic region, bookings are up 4% in line with capacity. Sales of differentiated product are up 16% compared with this time last year, accounting for 69% of holidays sold to date, up seven percentage points on the prior year. Online sales continue to grow, accounting for 62% of winter holidays booked, up by three percentage points on the prior year. Booked load factor is currently 49%.

"Overall, while recognising the current level of uncertainty around the wider economy and volatile corn markets, we continue to expect to make progress this financial year," the group said.

Bulk Ingredients Operating profit in the Bulk Ingredients division, which supplies ingredients such as high fructose corn syrup, is expected to be up year-on-year, with a strong performance from liquid sweeteners in both the US and Europe more than offsetting tough times in the US ethanol market. Income from co-products, such as corn gluten meal used in pet food, returned to more normal levels during the period. "While US corn prices have eased slightly since publication of the USDA's latest supply and demand estimates on September 12th 2012, prices remain high as a result of tight market conditions and continued uncertainty about the size and quality of this year's harvest following the severe drought in the mid-west. European corn prices have followed a similar pattern to the US," the T&L statement said. Outlook Things are expected to remain tough in Europe for the Speciality Food Ingredients business, but the group still expects to achieve steady volume growth across all its major product categories and solid sales growth for the full year. In Bulk Ingredients, T&L expects the firm demand for liquid sweeteners in the US to continue and demand in other food markets to remain stable. In Europe, higher corn prices are expected to reduce isoglucose margins in the second half. Market conditions in US ethanol are expected to remain challenging.

First half profits will be level rather than heaped at sweeteners firm Tate & Lyle (T&L). "Overall, we expect to report adjusted operating profit for the group for the first half in line with our expectations and the prior year period, which benefited from an exceptionally strong performance from co-products," the group said in a trading update. Speciality Food Ingredients Operating profit in this division, which primarily focuses on the food and beverages markets with products such as the Splenda sweetener, will be lower than in the first half of last year. This is because of lower volumes shipped this time round - though T&L notes that the first half of last year included an unusually large volume from customers' new product launches - as demand in Europe remains subdued. The impact of the strike in Turkey and the previously announced step change in fixed costs associated with its business transformation initiatives have also put a dent in operating profits for the division. On the upside, the group saw an upturn in performance in the second quarter, with "good growth" in Sucralose volumes, although overall volumes in the first half are expected to be lower than the comparative period. Sales are set to be ahead of the prior year period with solid growth in the US and emerging markets offsetting a weaker performance in Europe.

Germany's defence minister, Thomas De Maizière, reckons the October 10th deadline for thrashing out details of a merger between EADS and BAE Systems might be on the optimistic side. "Perhaps we need more time. It depends on the answers for our questions and so I think we need more time," Thomas de Maizière told reporters in Nicosia, when asked about the proposed tie-up between Airbus owner EADS and British defence firm BAE. De Maizière revealed he had constructive discussions with his French and British counterparts on Wednesday evening, but the proposed merger is a complex issue, not least because of national security concerns. Under the current proposal, France's EADS would be the senior partner of the combined entity, which might not sit well with some of BAE Systems' military customers. De Maizière said it was not for him to determine whether the currently proposed 60/40 post-merger weighting in favour of EADS was appropriate. EADS and BAE Systems have said they will offer France, Germany and Britain a "golden share" in the new company, enabling them to veto any future takeover.

Shares of media and digital publisher Future leapt ahead as it underlined its confidence of meeting full year expectations and said its US business is close to moving back into profit. The publisher of magazines such as Classic Rock and Guitar World said: "Trading in the fourth quarter has been encouraging in both the UK and the US, Future's two biggest markets." "This has reinforced our confidence that the full year numbers for 2012 will be in line with our expectations and also give us a good trajectory into the next financial year," it added. In the US Future said it continues to make strong progress and it is close to returning to profitability. It hopes to be profitable in the US in FY 2013. Future said it also continues to make progress towards a predominantly digital business. Sales of digital editions on Apple devices surpassed £5m in the period since the Apple Newsstand was launched in October 2011. Meanwhile visits to Future websites surged over 50% this year and now total more than 45m users a month. "At our full year results in November we will outline our plans to grow and monetise our global digital audiences, leverage our position as a global leader in tablet products and software and diversify Future's revenues further," it said in Thursday's company update.

Anglo American Platinum (Amplats) has said that it has had no choice but to initiate disciplinary action the 80 per cent of its workforce at its Rustenburg mines that continues to strike illegally. The firm has made repeated calls for the strikers to return to work since it re-opened the mines on Tuesday 17th September, having previously halted operations amid a wave of labour unrest. Chris Griffith, Chief Executive Officer of Anglo American Platinum, said: "Despite repeatedly urging our employees to come back to work, attendance at our Rustenburg operations remains low. We have been left with no choice but to initiate disciplinary action, which could lead to dismissals."

Shares in mining giant Bumi dropped even further on Thursday on the back of reports that the Bakrie family has come to blows with Samin Tan, the business tycoon who nine months ago rescued the Bakrie Group when he invested one billion dollars in Bumi in return for a 47.6 per cent stake split evenly between Tan and the Bakries. Since Tan made the investment, shares in Bumi have fallen around 80%, causing Tan to be "furious" with the Bakries, who are one of Indonesia's wealthiest and politically connected families. According to Reuters, six unidentified sources have given details of the rift, with one reported as saying: "He [Tan] was furious with the Bakries, as you would be if you had borrowed $1bn to invest in their company and found yourself in this mess." The battle between the two could risk the $3.0bn deal that was signed in 2010 with the aim of making Bumi one of the world's largest coal exporters. Shares in Bumi have been hit this week after Bumi said it was investigating allegations of financial and other irregularities at its Indonesian operations. The investigation centres on PT Bumi Resources, in which the company has a 29% interest, with particular focus on that firm's development funds.

Seymour Pierce has turned less positive on Compass Group, despite the contract caterer's fourth quarter numbers coming in ahead of expectations. "Compass reported organic revenue growth of over 6% in the quarter and of around 5.5% for the twelve month period to September 30th 2012 driven by good levels of new business wins and high contract retention rate. With the impact of acquisitions this is expected to result in constant currency growth of 8% which is in-line with our expectations," Seymour Pierce's Kevin Lapwood writes. "Group margin improved slightly and, as a result operating profit is expected to be up by around 8%. This is in-line with our current estimate," Lapwood added. According to the broker's calculations, the company's £0.5bn budget to buy back shares should be blown by the end of the year, at which point the questions becomes: "is there more to come?" Although the net debt to equity ratio is still healthy, by the broker's reckoning, at less than 30%, the need to spend money to sort out Southern Europe may make the company more cautious over announcing a further buyback. The group has announced a restructuring of its Southern Europe operations which should yield £95m of cost savings a year a couple of years down the line. The restructuring will lead to exceptional cash charge of £150m over two years and a non-cash exceptional charge of £195m. The broker is making no change to its forecasts for the current financial year, which puts the shares on an earnings multiple of 15.5.

if relative strength is one of your key investment metrics then packaging giant Rexam might be a stock for you, reckons merchant bank Beaufort International. Kenneth Pio D'Mello, a senior analyst at the bank, said Rexam has been added to the Beaufort top relative strength buy list. The chart-gazer recommends an entry point of between 430p and 440p and to get out quick if the shares dive below 400p. In D'Mello's view, 420p is a support level while a reading of the runes suggests an exit point for short term traders of 490p. Restructuring and cost reductions should improve operating profits, D'Mello suggests, in a nod of the head towards fundamental analysis. Those of you who put more stock in technical analysis might want to note than the moving average convergence-divergence indicator - which is designed to spot momentum changes and shows the relationship between two moving averages of prices - is positive, and the relative strength index is above 50.

Seymour Pierce has turned less positive on Compass Group, despite the contract caterer's fourth quarter numbers coming in ahead of expectations. According to the broker's calculations, the company's £0.5bn budget to buy back shares should be blown by the end of the year, at which point the questions becomes: "is there more to come?" Although the net debt to equity ratio is still healthy, by the broker's reckoning, at less than 30%, the need to spend money to sort out Southern Europe may make the company more cautious over announcing a further buyback. The group has announced a restructuring of its Southern Europe operations which should yield £95m of cost savings a year a couple of years down the line. The restructuring will lead to exceptional cash charge of £150m over two years and a non-cash exceptional charge of £195m. The broker is making no change to its forecasts for the current financial year, which puts the shares on an earnings multiple of 15.5.

Positive Points Trading in the fourth quarter was summarized as "good." Positive trading momentum for its North American and Emerging Market regions had continued. For North America, management highlighted that "the outsourcing culture is vibrant and we have excellent momentum in the business there." In the Emerging Markets, organic revenue continued to grow at a fast pace, driven by good new business wins and like for like revenue growth across most countries. While trading, particularly in Southern Europe, had deteriorated, actions to try and counterbalance the decline were being taken. Group diversification continues to provide a key ingredient, with a 'balanced portfolio' of client industries – both cyclical and defensive – combined with a wide geographical spread playing a significant part in the group’s business model. Management retains a tight rein on costs, with the group's efficiency programme ongoing. Small bolt-on acquisitions are being pursued, while management also continues to push the group's services into non-food support services. Compass has invested £200 million in acquisitions in the financial year to date. Investor returns continue to be increased. A £500 million share buy-back programme is currently being pursued. Hopes that additional share buy-back scheme(s) will be announced persist. A progressive dividend policy is being followed. A 10.8% increase in the half year dividend was previously announced.

Negative Points Trading for the group's Europe & Japan business remains challenging. Management highlighted increasingly negative like for like volume trends, which had accelerated in the second half, and are now running at minus 2% to 3%. Within this, the Southern European countries of Italy, Spain and Portugal had seen like for like volume declines of around 5%. The challenging European conditions were also putting some modest pressure on contract retention, with a small increase in client closures seen. While the recovery in Japan was highlighted as "ongoing", management also noted that "prior year comparatives were now becoming stronger." Food cost inflation has previously been highlighted by management. The printing of money by many Central Banks across the world has arguably pushed up soft and hard commodity prices across the board. Unseasonal weather is also creating volatility. Volatility in currency markets can work against the company. Competition across the global industry remains intense.

Financial Highlights: Organic revenue growth of 5.5% expected. In the fourth quarter, organic revenue growth is expected to be around 6%, up from 5.7% in the third quarter. Operating profit increase of approximately 8% forecast. Profit margin expected to be slightly ahead of last year. Its Europe & Japan business had seen increasingly negative like for like volume trends, which had accelerated in the second half and are now running at minus 2% to 3%. The accelerated efficiency programme across Europe will incur an exceptional cash cost of £100 million in 2012 and £50 million in 2013.