YP75: Markets suffer as debt-crisis fears spread across Europe

Fears of a debt crisis across much of southern Europe led to another week of losses for global equity markets with London's FTSE 100 finishing the week 2.5 per cent lower.

While attention has been focused primarily on Greece over recent weeks, attention is now turning to both Spain and Portugal as questions are asked over their ability to manage spiralling budget deficits. The concerns prompted a week of selling for the majority of risk assets and investors sought the relative safe haven of US Treasuries and other dollar assets.

Here in the UK, the Monetary Policy Committee kept interest rates on hold for yet another month and put a stop on the Quantitative Easing programme for the time being, preferring to wait and monitor the strength of the economic recovery before extending the programme any further than the 200bn already committed.

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Sales at Cranswick, a food production company, are well ahead of last year, according to the latest trading update from the group.

Cranswick, which primarily produces pork products, witnessed demand for bacon increase by more than 60 per cent while sausage sales gained by more than 20 per cent year on year. Other products, such as cooked meats and sandwiches, also saw sales growth, and total sales for the group topped 200m in the final quarter of 2009.

Cosalt, a leading provider of safety products to the marine and oil and gas markets, announced a loss of nearly 3.5m over 2009, despite an increase in revenue to nearly 108m.

The company blamed a number of one-off charges such as redundancy costs, re-negotiation of banking terms and re-evaluation of various investment properties, for the loss, and warned that further job losses were possible.

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Net debt has been reduced to a little under 19m from 27m a year earlier, and annualised cost savings of 3m have been achieved.

The company also confirmed a number of new contract wins as well as renewals of several existing deals which they believe should contribute to improved trading going forward.

International engineering service firm Redhall, whose companies include Booth Industries, Jordan Nuclear and Chieftain Group, confirmed that first-quarter trading was in line with expectations, with the energy division performing particularly strongly.

Redhall is also the preferred bidder on a major construction project for biorefinery operator Vicerfo Fuels Ltd, based in Hull. The contract is potentially worth 18m and will significantly strengthen Redhall's order pipeline.

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Leeds Group, the fabric importer, has reaffirmed its commitment to expanding into China as it announced that the existing China subsidiary is now contributing to Leeds Group's profitability. The subsidiary, Hemmers-Itex has also reduced debt by a greater than expected amount.

David Cadwallader, Assistant Investment Manager at Brewin Dolphin, Leeds