A week ago the company offered a robust trading statement, containing not a hint of lower profits.Burmah Castrol, the oil group, was hit by Cazenove caution, off 25p at 1,041.5p. Merrill Lynch put a 900p target on insurer General Accident, up 6p at 828.5p.There was a smattering of gains among computer shares with CMG leading the pack, up 70p to 1,045p.The hard-pressed spirits sector displayed modest strength.Allied Domecq edged ahead 3.5p to 416p; Grand Metropolitan 6p to 438.5p and Guinness 6.5p to 438.5p.British Building & Engineering moved ahead 5.5p to 55p, a 12-month high, as Britannia, off 3p at 32.5p, said its stake is 6.89 per cent.It was the first time that Britannia, a builder, had disclosed an interest in the hard-pressed building materials group.BB&E could well be receptive to a bid approach It has talked about the possibility of a strategic merger. In recent years it has undergone substantial restructuring and said in October, when announcing a pounds 2.25m loss, it had moved into profits.In a generally firm building sector AMEC was actively traded, gaining 7p to 98.5p Tilbury Douglas was also in demand. A 520,000-trade at 560p inspired a 45p gain.Hay & Robertson, the sports goods group, rose 9p to 138.5p on its merchandising link with Terry VenablesTottenham Hotspur slipped 17.5p to 672p.5p following the latest defeat and “take profits” advice.Ronson, developing as a luxury goods group, was hit by a run of sell orders with one for nearly 80,000 shares going through at 22.25p.The quote was lowered 3p to 23p.Taking StockA rash of buy circulars on Robert H Lowe are expected. The market appears to have got wind of at least three recommendations suggesting profits will hit pounds 2.9m this year (up from pounds 2.4m) with pounds 3.4m likely next year.

The company produces replica football kits for a host of top teams and its shares, up 1.25p to 28.5p, are lowly rated compared with others, from football clubs to retailers, enjoying the sports boom. The group also has packaging and printing interests.Eidos, the entertainment software group, has linked with MGM. It has obtained the European distribution for a series of computer games, including The Ultimate James Bond. Last month the group raised pounds 22m in the US by selling 3 million shares in ADR form The shares are 870p, up 15p..

So now we know. Labour is committed to following broadly the same personal taxation and public spending policies as the present Government. What does this mean for the business and financial community?

There has been an undercurrent of opinion in recent months that, once the election is out of the way, both taxes and interest rates will have to rise. This, it has been argued, would occur whichever side won the election, the import being that pre-set policies are not sustainable. If you believe this, then neither political party has credible policies: the Tories did not have them, and now Labour has fallen into the same trap. But if you believe what Gordon Brown says and the broad shape of British fiscal and monetary policy will be much the same under either party, at least the first question has become very clear: is that undercurrent that Britons face higher taxes and interest rates right?
On interest rates the answer is easy: yes. The UK interest rate cycle is heading upwards and will do so for the next couple of years.