THE markets have fallen back steadily this week, mirroring the US, which revealed a sharper than expected downturn in US consumer confidence.
Gordon Brown delivered his pre-Budget speech, which did not announce any real surprises, and said that he expects the UK to grow at a slower rate.
A disappointing trading update from mobile phone giant Nokia also knocked sentiment. The company forecast 420-440 million mobile handsets to be sold globally next year, which is lower than analysts had predicted. It has also reduced this year's sale estimates, which it now reckons will be around 380 million. This sent the telecom and technology sectors into decline.
Further job cuts have been announced this week, with BAe Systems axing another 1,700 jobs. It has been forced to end its regional jet business following the huge fall in passenger numbers, which has led to fewer planes being ordered.
Also ITV broadcaster Granada is to shed 430 more jobs following 630 already going this year. It said that falling advertising revenues had hit profits and announced results showing a fall in full-year pre-tax profit from £270 million to £175 million. It hopes to reduce workers to about 5,000 and cut costs by £60 million by 2003. Granada's main priority is to turn round increasing losses incurred by ITV Digital, which it owns jointly with Carlton and ITV Sport.
The UK's largest tour operator, Airtours, is also to slash a further 1,600 jobs. The company, which plans to rename itself Mytravel, said it will cut capacities in all its markets for all seasons on sale and reduce "discretionary" spending.
Among the banking sector, HBOS internet banking arm, Intelligent Finance (IF) has announced its operating statistics at the end of its first full year. It has taken £8.9 billion in deposits and expects to break even by the end of 2003. It now has 327,000 accounts and 242,000 customers and HBOS reckons IF is attracting around £750 million in new business each month.
Finally, local company Speedy Hire, previously called Allen, completed the sale of Ryan to Alfred McAlpine for around £12.9 million. This disposal completes Speedy Hire's programme of exiting non-core businesses and allows it to focus solely on hire services.
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