Long-term warning by Murdoch

RUPERT Murdoch today predicted a sharp and prolonged downturn for the advertising sector as he warned the market had entered an unprecedented period of uncertainty.

The News Corporation chairman told reporters at BSkyB's annual meeting that in recent months his global operations had experienced the fastest downturn in advertising revenues he had ever seen.

Murdoch said a prolonged war on Afghanistan, with the possibility of more attacks on the US, threatened a protracted recession, but his operations were well prepared to endure a lengthy downturn.

Murdoch, who said he had no intention of retiring despite the arrival of his wife's baby in two weeks' time, admitted his aspirations to add Hughes' American satellite television unit DirecTV to his global portfolio had effectively disappeared unless regulators block rival EchoStar's bid.