By Rob Arkwright, Hargreave Hale Ltd THE Markets have undergone further suffering this week with the US issuing another spate of profit warnings. Wall Street has taken a battering following increasing rumours that the US economy is moving closer to a recession. Around 900 of its leading companies hit new 52-week lows.

Further panic followed rumours that Lucent Technologies, the US telecommunications equipment group, and formerly one of the world's biggest companies, may be heading towards bankruptcy. The company denounced the speculation as "baseless and irresponsible". The company shares have fallen more than 90pc since the start of last year, its value plummeting to a mere $23 billion.

All this is obviously taking its toll on the UK and latest statistics show manufacturing is suffering its worst performance for nearly two years. With the added pressure of the foot-and-mouth crisis reducing activity in Britain's crucial services sector to a six-month low, the Bank of England's Monetary Policy Committee was forced into reducing base rates by a further quarter point to 5.5pc. The markets reacted well.

As well as all the technology and telecoms going through their usual turmoil, Railtrack has been hammered this week. This followed the Government's announcement of tougher controls over the company. Railtrack will not be as involved in big improvement projects and also disclosed £1.2 billion of unexpected costs. Fears are that the stock could fall below its 1996 flotation level.

Local company Allen is currently going through a disposal program in an attempt to focus on its hire services activities. It has entered into a contract for the sale of its entire issued share capital of its Building Contracting Division to Montpellier Group plc, on approval of shareholders.