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Mr Portillo was recently seen on television consulting a therapist about his love

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Mr Portillo was recently seen on television consulting a therapist about his love of Wagner. We have a government that functions without a credible opposition. Yet in several policy areas its policies, or lack of them, raise important questions A possible military attack against Iraq is one of them. The effectiveness of its reforms of public services is another. A decision on whether to hold a referendum on the euro looms this autumn or early winter. Ministers will act in these policy areas without having to pay much attention to the Shadow Cabinet.

This is partly because Conservative front-benchers pay too much attention to each other, to those they like and those they loathe. As a result of this the media have become the main opposition This is damaging for several reasons The Government has always been obsessed by the media. It will become more so if newspapers become its only opponent More importantly, no one has elected the Daily Mail. GWR said a recent decision by Sony to begin manufacturing portable digital radio receivers "confirms the view that mass market consumer uptake of digital radio in the UK is inevitable and will accelerate"..

The Chancellor Gordon Brown brushed aside protests from motorists yesterday by announcing that next month's 6p-a-gallon increase in fuel duty would go ahead, despite fears that higher crude oil prices could lead to even more expensive petrol. He added that "the big question remains as to what value to attach to the group's digital assets". It predicted that local stations, making up about two-thirds of its total revenues, would increase turnover by 10.4 per cent for the six months to 30 September but that this would be offset by a 12 per cent fall at Classic FM, leaving total group revenues "broadly comparable with the same period last year".The company said it was "beginning to see improved short-term visibility of revenues" but that the trading outlook for the group "remains unchanged".Mr Menzies-Gow said he felt that although GWR "forecasts will be increased by most analysts", its "dependence on big lumpy contracts" made the situation for Classic "overly volatile". A spokesperson for the company said Capital had "always been cautious" and that the continued difficulties in the national radio market, which accounts for three-quarters of the company's revenues, had been to blame for the gloomy outlook.Richard Menzies-Gow, an analyst at Dresdner Kleinwort Wasserstein, said Capital had been "more cautious than some of its peers" and he added that it was "too early to start factoring in more positive assumptions for 2004".Capital has the added uncertainty surrounding the future of its star breakfast DJ, Chris Tarrant, with most expecting Mr Tarrant to leave the station in November.GWR also reported difficult trading at its flagship national station, Classic FM, although it did forecast strong results for its local operations. Capital Radio predicted a 4 per cent drop in revenues this year, seeing only "limited signs of improvement" in the advertising environment. Canary Wharf revealed it had lured it with the equivalent of a 3.1 years' rent-free period - worth £100m, according to analysts.Mike Prew, an analyst at Citigroup, said of the Lehman news: "This is not satisfactory conduct But at least they've now come clean about it ... Rival GWR said it has seen "strong growth" in revenues from its local radio stations.

Outdoor advertising group Maiden said demand was strengthening and forward visibility had improved, though margins have continued to come under pressure.Capital, in a trading update, said "it is still too early to tell when the UK advertising sector will recover". Sir Martin Jacomb, the non-executive director leading the committee evaluating the bids, said: "We are now actively reviewing indicative proposals.". "It's no-one favourite company," he said.Lehman, a US investment bank, signed up for Canary Wharf in March 2001 Its building is now virtually complete. The company reported that its net asset value had dropped by 33 per cent to 344p a share for the year ended June.There was outrage among many analysts that the company, which saw its share price plummet last year when it admitted that some tenants had the right to "put back" space to the developer, had hit investors with a new surprise.

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