The problem occurred when BA upgraded the bookings system

The problem occurred when BA upgraded the bookings system.A spokeswoman for BA conceded that a weakening US economy and foot-and-mouth disease would also affect business in April and May.The spokeswoman added, however, that the March figures showed that BA's strategy of focusing on premium traffic was paying off.Club World, its business class, improved over a strong March performance last year, the carrier said, and "the outlook for travel in this cabin continues to be positive".Separately, Avis Europe warned that, after a good start to the year, its UK business was showing signs that the impact of foot-and-mouth was hitting car hire, as tourists and businessmen stayed away or cut down on travelling around Britain.Its shares fell 13.25p to 139.75p.Alun Cathcart, the chairman, said: "Although overall revenues from US inbound business in the first quarter are in line with expectations we remain cautious about demand from US customers which generates some 10 per cent of total annual revenues."Mr Cathcart said that slower economic growth and rising costs across Europe is "leading to somewhat lower volume in 2001". He said the situation in Germany was particularly difficult, though he added that European pricing trends continue to be favourable.A number of brokers sounded caution on Avis Europe stock.ABN Amro said it expected pre-tax profits this year to edge up by just £2m to £109m.. Associated British Foods, whose products include Twinings tea and Kingsmill bread, is planning to use its £1.1bn cash pile to fund acquisitions in its ingredients business Associated British Foods, whose products include Twinings tea and Kingsmill bread, is planning to use its £1.1bn cash pile to fund acquisitions in its ingredients business. ABF, in which the Weston family controls a 60 per cent stake, has been steadily building up its ingredients division over several years but still feels it lacks critical mass."We need to get scale in the sectors in which we are growing," said Peter Jackson, the chief executive. He said the deals could come in food ingredients, healthcare and personal care, such as ABF's contract to provide lotions to Procter & Gamble.However, no acquisitions are believed to be imminent.The comments came as ABF shrugged off concerns over the US slowdown and the impact of foot-and-mouth, to announce pre-tax profits of £226m for the six months to 3 March, up from £167m the previous year. The figures were boosted by profits of £40m from the disposal of non-core businesses such as Burtons Biscuits, maker of the Wagon Wheel. There was also a £33m boost from investment income derived from the group's cash balances of £800m, which are forecast to rise to £1.1bn by the end of the financial year in September.

Stripping out these gains operating profits rose by just 3 per cent to £159m.ABF said a "further significant decline in the general economic climate would almost certainly impact on our business." However, Mr Jackson said there was no sign yet of a material impact. He added that the foot-and-mouth outbreak would have a marginal effect as its animal feeds operations only account for 5 per cent of profits.Elsewhere in ABF, the Primark discount retailing business continues to prosper with operating profits up 15 per cent to £30m. Like-for-like sales in the period were 6 per cent higher than the previous year. The chain trades out of 96 stores with a further 14 planned for late in the year. ABF said the extra stores would add 25 per cent to the sales space as the group opens larger stores of around 50,000 sq ft.ABF shares closed 4.75p higher at 433.5p.. Pubmaster, the tenanted pub operator, is on track to make a formal offer for Wolverhampton & Dudley Breweries as early as tomorrow Pubmaster, the tenanted pub operator, is on track to make a formal offer for Wolverhampton & Dudley Breweries as early as tomorrow. Pubmaster, controlled by the German bank Westdeutsche Landesbank Girozentrale, was completing the final details with its financial backers last night. The group is understood to have won backing from three separate banks, thought to include Royal Bank of Scotland.

It is likely that any offer would be pitched below £470m.W&D has been in a technical bid period since August, when a consortium led by Robert Breare, the leisure entrepreneur, made an indicative offer of 500p a share. That was rejected by the brewer, which said it undervalued the business and was "too uncertain".Since then, a buyout team led by W&D's managing director David Thompson has seen its rival bid collapse after withdrawal of its backers, UBS Warburg and RBS. NM Rothschild, W&D's financial adviser, attempted to lift the uncertainty surrounding pubs and brewing business in February, by asking interested parties to submit formal offers by noon tomorrow.It was unclear yesterday whether Mr Breare, who has said he remains interested in buying W&D, would meet the deadline. A spokeswoman for Mr Breare's Noble House Leisure vehicle, whose main backer is the venture capital group Botts & Co, said she was "hopeful" the team would be ready to submit its bid.However, she added: "A lot of the information we requested from Wolverhampton & Dudley was received very late."One analyst said: "Normally, it takes two months to come up with a solid offer, not eight. So I think [Mr Breare's] welcome has already been extended long enough."If Pubmaster succeeds in acquiring W&D, it would become the country's third-biggest pub company, after Nomura and Punch Taverns.

The group turned its attention to W&D after its joint offer with Candover, the private equity group, for Whitbread's 3,000-strong pub estate failed last month.As well as owning four breweries that produce brands such as Pedigree and Marston's, W&D operates 1,750 managed and tenanted pubs.. Shares rose across Asia today but the momentum spawned by the U.S. interest rate cut ran out in Europe as traders concentrated on continuing poor earnings reports. Shares rose across Asia today but the momentum spawned by the U.S. interest rate cut ran out in Europe as traders concentrated on continuing poor earnings reports.Blue chips were down 0.5 percent in London, 0.3 percent in Frankfurt and 0.4 percent in Paris."Techs and telecoms are flying, with Nasdaq gaining 8 percent yesterday, but ratings have actually risen in the first–quarter because as share prices have gone up earnings prospects have not improved," said Jeremy Batstone, an analyst at NatWest."These stocks are already wildly overstretched on valuation grounds so I would expect a valuation–induced sell off," Batstone said.Asian markets began with some sizable rallies but prices retreated as the day wore on.Analysts said the surprise half–point rate reduction announced by the U.S Federal Reserve on Wednesday could signal the U.S.