The Business: Thursday June 12 2014

Company news, markets and financial talking points, available from 8am Monday to Friday

IMF WARNS OF GLOBAL HOUSING RISK

The world must act immediately to avoid the risk of another devastating housing crash, the International Monetary Fund warned yesterday. As it published new data showing house prices are well above their historical average in many countries, the IMF said the tools for containing housing booms were “still being developed” but that “this should not be an excuse for inaction”. The IMF is concerned about economies as diverse as Hong Kong and Israel.

‘EXTRAORDINARY’ JOBS MARKET BOOMS

More people are in work than ever before after record numbers of jobs were created in the three months to April, prompting top economists to describe the British labour market as “extraordinary” and “booming”. In the largest quarterly rise since records began in 1971, the Office for National Statistics said employment had surged by 345,000. The increase pushed employment up to 30.54 million, another all-time high.

IRAQ VIOLENCE ‘COULD KILL GLOBAL RECOVERY’

Disruption of oil production in Iraq could kill the global economic recovery, warn analysts. Experts are warning that crude at $130 per barrel would cause economic chaos worldwide. A recent upsurge in violence has seen al-Qaeda forces seize control of Mosul, Tikrit and Samarra. Ole Hansen, vice-president and head of commodity strategy at Saxo Bank told the Daily Telegraph he fears the situation could see some parts of the world fall back into recession.

OSBORNE VOWS TO TACKLE MALPRACTICE

George Osborne will pledge to take more action against wrongdoing in the financial sector, reports the BBC. The chancellor will vow to make the manipulation of the foreign currency markets by banks a criminal offence. During his annual Mansion House speech, he will promise to target "the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them". He will connect the reputation of the City to the economic health of Britain.

QUOTE OF THE DAY… KING LOOKS FOR A BRIGHT SIDE

“Of course, I’d have preferred sales to be growing, but I don’t think I’m leaving on a low. I think if my tenure were judged on one quarter, that would be a little sad.” Justin King denies he’s checking-out of Sainsbury’s on a low. 

ROONEY TOPS ENGLAND WEALTH LEAGUE

Three England players appear in a ranking of the richest 10 players taking part in the World Cup. As The Guardian reports, this makes England the strongest performer in the tournament’s wealth league. Wayne Rooney, Steven Gerrard and Frank Lampard appear in the top 10, which was compiled by Wealth-X. No other country has three players in the list. Ivory Coast has two: Yaya Toure and Didier Drogba. Portugal’s Cristiano Ronaldo tops the list with an estimated worth of $230m.

THE NUMBERS... AT 0715 BST


FTSE-100: down -0.50 to 6838.87
Dow Jones: down -0.60 to 16843.88
Dax: down -0.79 to 9949.81
Cac-40: down -0.87 to 4555.11
Nikkei: down -0.75 to 14957.00
Hang Seng: down -0.37 to 23170.20
US dollar: buys €0.73870 and £0.59520
Sterling: buys $1.68000 and €1.24120
Oil: $110.08 up +0.5