Jo quits her job in protest at losing the promotion and moves in with Pete as she cannot now afford her higher rent. She begins an aerobics class and Pete drums up custom for her - despite throwing up at his first class. He is starting to fall for her and is upset when she dates colleague Suggs. Adam and Rachel show Laura the room they have prepared for her but when Ruth from the adoption agency hears of Rachel's pregnancy the adoption is withdrawn from them on the grounds that Laura would feel excluded by the baby. They consult a solicitor but have to concede defeat. Karen gets a job with publisher Mark Cubitt,editing a book by his wife Geraldine,with whom Karen soon clashes. Karen is about to quit but Mark takes her to lunch and persuades her to stay.