Vodafone, which plunged into the red yesterday as hefty acquisition costs filtered through its accounts, indicated that its blockbusting shopping spree was halting and that its focus would shift to increasing profit margins and introducing new services. Vodafone, which plunged into the red yesterday as hefty acquisition costs filtered through its accounts, indicated that its blockbusting shopping spree was halting and that its focus would shift to increasing profit margins and introducing new services. Vodafone is thought to be planning a consumer launch of its next-generation mobile phone service GPRS "very soon". It is also still planning to launch third-generation (3G) services in the second half of next year, although the company said that could slip back.Chris Gent, Vodafone's chief executive, said: "Following the recent introduction of changes to our commercial policies, the focus in this financial year, as we transition to new data services, will be on continued margin improvement and cash-flow growth, rather than customer growth and market share."Mr Gent said the cost to Vodafone of building 3G infrastructure across Europe would total £8bn to £10bn, including a £1bn-£1.5bn spend in the UK.In the year to 31 March, Vodafone reported a pre-tax loss of £8bn after having to account for an £11.9bn goodwill charge from acquisitions, mainly from buying Mannesmann Last year the company reported profits of £1.3bn. Shares in Vodafone closed down 3.5 per cent at 188.5p.While Mr Gent did not rule out further acquisitions, he said future purchases were unlikely to match recent scales. He indicated that Vodafone would not be making any short- term moves to increase its 15 per cent stake in Cegetel, the French telecoms business, because the major shareholder, Vivendi, was showing no signs of relinquishing control.Vodafone is not looking to make a move on Singapore's MobileOne mobile operator, either, Mr Gent said, but was "keeping its options open" on taking control of Japan Telecom.Vodafone's underlying profits for the 12 months, or proportionate Ebitda earnings, came in at £7bn, from £5.5bn last year Sales rose to £21.4bn from £16.6bn. The figures were in line with analysts' estimates.Andrew Beale, an analyst at Deutsche Bank, said the story at Vodafone was now one of "trying to leverage the revenue side with new services and increased usage" as well as getting "operating efficiencies."Vodafone reported yesterday that non-voice services ­ including text messaging, data and internet services ­ now accounted for 8 per cent of service revenues..

Confidence among US consumers mounted an unexpectedly strong recovery this month, boosting hopes that the US will avoid a recession. Confidence among US consumers mounted an unexpectedly strong recovery this month, boosting hopes that the US will avoid a recession. An index of consumer attitudes, published yesterday, showed that people were more optimistic about the long-term jobs outlook, despite a flood of corporate layoffs.The Conference Board said none of its consumer indicators showed signs that consumers planned to cut back on their spending plans. Lynn Franco, director of the board's consumer research centre, said: "The underlying driver seems to be that while consumers are rating current employment conditions as difficult, they do not see us headed for a recession."Separate figures showed that households are still spending more than they are saving every month. The savings rate fell to minus 0.7 per cent, from minus 0.6 per cent in March.Personal income data showed earnings were up 0.3 per cent in April, against a rise of 0.5 per cent in March, while personal spending rose 0.4 per cent, against 0.3 per cent the month before.Consumer spending, which makes up two-thirds of the US economy, has been identified by the US Federal Reserve chairman Alan Greenspan as helping the US to avoid recession.Analysts said yesterday's figures put forecasts of another interest rate cut by the Fed in doubt.

Christopher Low, chief economist at First Tennessee Capital Markets, said: "The Fed has done a good job in holding the consumers. It does reduce the chance of further easing."The outlook pushed up the dollar, which came within half a cent of its strongest level against the euro this year.The euro had already been undermined by comments from the head of Germany's prestigious Ifo research institute, Hans-Werner Sinn. He said the outlook for Germany, the world's largest economy, was looking "shaky".. The political row over UK membership of the euro descended into farce yesterday, as Germany's most senior banker had to backtrack after intending to urge Britain to join the single currency. The political row over UK membership of the euro descended into farce yesterday, as Germany's most senior banker had to backtrack after intending to urge Britain to join the single currency. Ernst Welteke, the president of the Bundesbank, had been expected to tell a London business audience that UK membership of the euro would be a "mutually beneficial deal".Although an advance copy of his text was made public in the morning by the Frankfurt-based bank, Mr Welteke cut most of the references to UK membership when he came to deliver his speech.According the Bundesbank's website, Mr Welteke had planned to say that the UK would gain from joining the euro. "It makes sense for both sides, the UK's joining the euro looks like a mutually beneficial deal," the script said "In terms of geography, Great Britain may well be an island. In terms of economics, it is not."In fact, Mr Welteke said Britain's economy was "closely linked" to that of the eurozone, but added: "I am not in a position to provide the UK with advice." After his speech, at the German-British Chamber of Industry & Commerce, Mr Welteke explained his deletions by saying he had not wanted to interfere in the UK's election campaign.ECB board members, who include Mr Welteke, have earned a reputation for sending contradicting signals.