The Week: City news - Google profits disappoint

Google's pre-tax profits rose 35 per cent year on year to $1.25 billion (£628 million) for the second quarter of 2008, but were down 5 per cent from the first quarter of the year, when they stood at $1.31 billion.

The results failed to meet analysts' expectations, and the search giant's share price fell dramatically before rallying. Revenues were $5.37 billion, a 39 per cent year-on-year increase and a 3 per cent increase on the first quarter of 2008.