Domestic economic data further dampened market sentiment with the announcement that in September, UK unemployment had increased to 1.79 million, registering its largest rise in 17 years. In addition, pressure from rising energy bills saw UK inflation climb to 5.2 per cent, its highest level since March 1992. As the week progressed, the release of America's worst retail sales figures for three years and heightening fears of a global recession led to large equity markets fall across the world. However, signs of easing in money markets led to some of the lost ground being recovered by the end of the week.

Cape, the international provider of essential support services to the energy and natural resources sectors, provided an update on the group's net debt position as at September 30. The AIM-listed company, which employs 14,000 people in 30 countries, said that over the course of the last three-month period its net debt position, excluding restricted cash and finance leases, had been reduced by £26m to £153.1m, which is in-line with management expectations. The group also reiterated that it was committed to achieving further substantial reductions in net debt during the remainder of 2008 and throughout 2009.

UK Coal, Britain's largest producer of coal which supplies seven per cent of the country's energy needs for electricity generation confirmed in its latest trading update that its full year results would be significantly below market expectations due to a change in production outlook and the recent fall in coal prices on international markets.

Spice, the provider of outsourced support services to the utilities sector, announced to the market that it had completed the acquisition of Morrel Consulting Ltd for an initial cash consideration of £150,000. An additional contingent cash payment of up to £5.07m will become payable depending on the performance of Morrel over the course of the next two years.

Simon Rigby, the chief executive officer, was confident that the acquisition of Morrel will enable the group to provide enhanced value added solutions to its customers. In a busy week for Spice, the board also confirmed that it had renewed a three-year contract with British Airways for the provision of private mobile radio and wireless technology support and services.

Software and IT Services business, Sanderson Group, posted a trading update ahead of the group's preliminary results for the year ended September 30. The company stated that revenues are expected to be in the region of £27.5m, a 52 per cent jump on the previous year, with adjusted pre-tax profits not less than £3m, both of which are below market expectations.

Christopher Hynes, Investment Manager at Brewin Dolphin, Leeds