The Week: City news - Google reports profit climb

Google has reported financial results ahead of City analyst expectations and has indicated that the online market is stabilising.

The online giant's revenues grew for the second quarter by 3 per cent to $5.52 billion. Google's UK quarter two revenues rose 4.4 per cent year on year to £410 million, its lowest rate of growth since launching. However, Eric Schmidt, the chief executive of Google, indicated for the first time that its video site, YouTube, would eventually move into profit, though he declined to say when.