The Business: Monday July 21 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Tesco chief executive Philip Clarke has resigned as chief executive following a profits warning. He will be replaced by Dave Lewis, Unilever executive. Clarke has led the firm since 2011. Only last month, he insisted that he was "not going anywhere", but in a statement this morning he said: "Having taken the business through the huge challenges of the last few years, I think this is the right moment to hand over responsibility."
UK house prices have fallen for the first time this year, says the Daily Telegraph. A triple-trend of stricter lending rules, looming interest rate rises, and the distraction of the World Cup tournament have combined to cool the rampant housing market. The advertised cost of a UK home fell 0.8% from £272,275 in June to £270,159 in July, according to new data from the property portal, Rightmove. The North and the East Midlands suffered the biggest declines – each falling 1.9%.
The UK economy will grow faster in 2014 than that of any other G7 nation, forecasts the EY Item Club. In an influential report, the Item Club also predicts that low wage rises will ensure interest rates do not rise until next year. "The markets are jumping the gun in thinking that rates will rise this year," said Peter Spencer, chief economic adviser to the Item Club. "Low inflation, the strong pound and ongoing risks from the eurozone all suggest caution in raising rates."
Formula One is set to get a new owner by next year, reports the Daily Telegraph. Its largest shareholder, the private equity firm CVC, will be forced to sell its 35% stake in the business within the next 12 months unless the majority of its investors agree otherwise. “The last thing [CVC co-founder Donald Mackenzie] wants to do is to get out but I think the way their company is structured eventually they have to move on,” said F1’s chief executive, Bernie Ecclestone.
“Perception-wise it really hits home - It's very challenging. It's very difficult to fight against negative perception. I can't comprehend of anything they can do to save themselves." Analyst Mohshin Aziz as Malaysia Airline counts the cost of this year’s two tragedies involving its jets.
BSkyB plans to create a European pay TV giant by acquiring 21st Century Fox’s satellite broadcasting assets in Germany and Italy. Amid ongoing negotiations about the group buying Sky Italia and Fox’s 57% stake in Sky Deutschland, reports yesterday suggested that a deal could be struck within a matter of weeks. The deal could return about €8bn to Fox just as it lines up a potential $80bn takeover of Time Warner.
FTSE-100: up +0.17 to 6749.45
Dow Jones: up +0.73 to 17100.18
Dax: down -0.35 to 9720.02
Cac-40: up +0.44 to 4335.31
Nikkei: down -1.01 to 15215.71
Hang Seng: down -0.07 to 23438.56
US dollar: buys €0.73860 and £0.58500
Sterling: buys $1.70940 and €1.26250
Oil: $107.18 down -0.7