Sharewatch: Pearson Falls On Weak Guidance

Pearson was seen in the spotlight after Morgan Stanley predicted a weak set of results for the group. Shares fell 3.8% week on week after the broker forecast that advertising revenues at the Financial Times are not expected to show any recovery until 2005 (see Weak Advertising Expected At FT In Pearson Results).

ITV partners, Carlton and Granada (see ITV Merger Set For Competition Commission Referral), also remained in focus, ahead of their planned £2.6 bn merger. Reports suggest the broadcasters are expected to make further savings by combining their regional, national and international news operations. This will provide further fuel to consumer groups seeking to block the deal on the basis that it will erode regional programming. The stocks were seen up 4.65% and 3.23% week on week respectively.

Broader market sentiment was seen shaken by the prospect of weak earnings for blue chip companies over the coming weeks and the impact of industrial action on British Airways.

The closing prices of media company shares on Friday were: