The President’s position is undermining his stature in the world

The President’s position is undermining his stature in the world.”After Mr Mandela’s visits to the townships, he received a telephone call from the President’s office, reportedly making it clear Mr Mbeki might see the comments as critical.Mr Mandela played down any split. He said: “Sections of the press are mischievously trying to drive a wedge between me and my President. They know I never criticise my President.”Mr Mbeki did not attend any World Aids Day functions and spent the day with his party’s national executive committee.. Marks & Spencer is this week expected to announce a £325m fundraising by issuing bonds backed by a portfolio of stores. The number and location of the stores involved will also be announced.

It is not thought to include flagship city centre stores, which the company is committed to keeping in its core portfolio.The issue is being sold to institutional investors by Morgan Stanley.The deal comes at the end of a year of upheaval at M&S, which is selling or closing most of its overseas stores. It disposed of its US subsidiary Brooks Brothers for $225m last month and is close to selling King’s, its US supermarket chain. The company is raising £2bn to return to shareholders next March.Separately, John Lewis believes that consumers have delayed their Christmas shopping until the last minute this year with “Christmas running about a week late”.Luke Mayhew, managing director of John Lewis department stores, attributed the lag in sales to the warm weather, the 11 September terrorist attacks and Christmas falling on a Tuesday which was giving the illusion of an extra week. “I don’t think it is the prelude to economic doom but I think we will have a solid Christmas rather than a bumper one.”Clothing sales have been hit, with fashion retailers left with surplus stock.

Mr Mayhew predicted that some clothing retailers would hold one-day sales before Christmas.. The once-booming service sector has become gripped by falling prices, prompting calls for the Bank of England to be prepared to cut interest rates further when it meets this week. The findings come in research published today by the Confederation of British Industry and the accountancy firm Deloitte and Touche.Firms servicing consumer industries suffered the most severe fall in output prices for three years, confounding expectations of a rise.The CBI warned that deflation would persist in the service sector over the coming three months. It also said that the trend of rising employment in services was set to go into reverse. Sudhi Junankar, the CBI’s chief economist, said: “The events of 11 September compounded an already deteriorating situation, especially for those firms reliant on the consumer. Confidence has taken a hard knock with hotels, bars and restaurants feeling the worst of this.”The Bank’s Monetary Policy Committee meets this week to consider whether to change interest rates from their present 38-year-low of 4 per cent. Roger Bootle, economic adviser to Deloitte & Touche, said: “While some members of the MPC think their battle is with inflation, this survey makes it clear that for most business people their battle is with deflation.”Other research published today shows British manufacturing companies suffer from significantly poorer levels of productivity than US-owned companies operating in the UK.The Engineering Employers Association, which conducted the research, says US-owned companies make greater use of “lean manufacturing” – waste reduction pioneered in Japan – and workplace initiatives such as staff performance appraisals..