The Business: Thursday March 27 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Almost a billion dollars was wiped off the value of the maker of the Candy Crush Saga on its Wall Street debut, sparking fears that the technology boom has begun to collapse. King Digital Entertainment priced its shares at $22.50, valuing itself at $7.1bn. However, despite a colourful launch, including a cartoon carrot ringing the opening bell on Wall Street, the company suffered a 15% fall and closed down $3.50 at $19.
The UK economy is still growing strongly, but the pace slowed slightly in March, says the CBI. The group said its growth indicator for this month showed the economy growing at its slowest rate in eight months. However, it said the growth remains above average, and added that the outlook for the next three months is positive. The slowdown in output growth is due in the main to the retail, business and consumer and professional services sectors.
Lachlan Murdoch has been brought back into the fold by his father Rupert, reports the Financial Times. The son of the media tycoon returns to the Murdoch empire as co-chairman of News Corp and 21st Century Fox. He had previously stood aside to concentrate on his own businesses. Rupert’s younger son James has been appointed co-chief operating officer at 21st Century Fox. He quit as executive chairman of News International in 2012.
Regulators will investigate whether the “big six” UK energy suppliers are preventing effective competition in the market, says the BBC. The probe, by the Competition and Markets Authority (CMA), is expected to take 18 months. Ofgem has referred the market to the CMA, “to consider once and for all whether there are further barriers to effective competition”. The move follows months of controversy over energy prices.
“Skye has assured me she’s not that cold. I will, of course, do everything in my power to warm her up.” Airline boss Michael O’Leary quips about one of the female hostesses at the launch of the “new Ryanair experience”.
The former head of the City regulator has warned that the economic recovery may be built on the same factors that led to the financial crisis, says the Daily Telegraph. Lord Turner says the housing boom has left Britain at risk of another major financial shock. The former chairman of the Financial Services Authority says mortgage and commercial property lending has played a “central role” in many post-crisis recessions.
FTSE-100: up +0.01 to 6605.30
Dow Jones: down -0.60 to 16268.99
Dax: down up +1.18 to 9448.58
Cac-40: up +0.94 to 4385.15
Nikkei: up +1.01 to 14622.89
Hang Seng: down -0.23 to 21837.59
US dollar: buys €0.72540 and £0.60330
Sterling: buys $1.65740 and €1.20330
Oil: $107.00 up +0.00