The Business: Friday June 13 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Interest rates may rise this year, Mark Carney has hinted. The governor of the Bank of England announced during a keynote speech that a rate rise could “happen sooner than markets currently expect”. The BBC economics editor Robert Peston says that although Carney’s comment suggests an increase this year, any rise “will be small and gradual”. Carney was speaking at the annual Mansion House dinner.
Oil prices soared to a three-year high after insurgents took control of Iraq’s second city, reports The Times. The insurgents have sparked widespread unease by threatening to advance on Baghdad amid fears that the escalating conflict would disrupt oil exports. The price of Brent crude in London sprung $2 to hit $112 a barrel at one point yesterday. The last time such level was seen was at the outbreak of the Arab Spring in 2011.
A senior executive has quit Twitter amid concerns over the group’s growth in users. Ali Rowghani, the social networking website’s chief operating officer, resigned with immediate effect yesterday, joining what appears to be an ongoing exodus of key staff. Twitter, which has yet to make a profit, has seen its share price plunge and numbers signing up to join the service slow. Rowghani had clashed with board members over proposed purchases of other sites.
“There are, on the horizon, things that should give us some cause for concern. If London prices were to continue growing at these rates that would be too fast for comfort.” George Osborne announcing curbs to house price dangers.
Mulberry’s profits have collapsed spectacularly after an attempt to move the brand upmarket failed, reports the Daily Telegraph. Profits at the British handbag maker fell by almost 50%. However, the company insists it has “listened to customers”, after alienating many by increasing prices. Executive chairman Godfrey Davis said the firm will now introduce more products between its core £500 and £800 price range.
FTSE-100: up +0.06 to 6843.11
Dow Jones: down -0.65 to 16734.19
Dax: down -0.11 to 9938.70
Cac-40: down -0.02 to 4554.40
Nikkei: up +0.78 to 15090.98
Hang Seng: up +0.72 to 23342.47
US dollar: buys €0.73710 and £0.58960
Sterling: buys $1.69600 and €1.25020
Oil: $112.59 up +2.9