The Business: Tuesday July 22 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Outgoing boss of Tesco Philip Clarke could walk away with around £10m after being replaced for presiding over a disastrous period at Britain’s biggest supermarket chain. The payoff was defended by Tesco’s chairman Sir Richard Broadbent, who described Clarke as a man with a “tremendous commitment to Tesco”. Shares in the retailer rose by more than 2% in early London trading following news of Clarke’s departure.
We should work three days a week and retire later – that’s the suggestion of Carlos Slim, the world's second richest man. The Mexican tycoon has called for a three-day working week, insisting that a shorter week, offset by longer hours and later retirement, would boost productivity and improve our quality of life. "People are going to have to work for more years, until they are 70 or 75, and just work three days a week- perhaps 11 hours a day," he said.
Time Warner has changed its bylaws in a move designed to block a potential hostile takeover from Rupert Murdoch, says the FT. The media company, which last week knocked back a $73bn approach from Murdoch’s 21st Century Fox, has scrapped a rule allowing investors to requisition an investors’ meeting, to strengthen its ability to resist Murdoch’s overtures even if its shareholders want a deal to be considered.
Yahoo has bought the app analytics firm Flurry in the hope of boosting its advertising revenue from smartphones. Flurry helps app developers understand data about their users and deliver more targeted and personalised advertising to them. Yahoo is following in the footsteps of many of its rivals who have also bought mobile advertising technology firms in recent times. It is rumoured that Yahoo paid between $200m and $300m (£117m and £ 175m) in the deal.
“The medicine will be painful at first – hence why Tesco’s share price didn’t go up as much as some thought it might on Monday – but it needs to be administered without further delay.” Allister Heath, in the Daily Telegraph, on the treatment Tesco is crying out for from its new boss, Dave Lewis.
Netflix reported profits of $71m (£42m) in the second quarter, more than double compared with the same period a year ago. The online video firm said revenue from its streaming content service rose nearly 50% to $1.2bn, compared to $837m a year earlier. Announcing the data, Netflix said it added 1.69m users during the period from March to June. The BBC reports that shares in Netflix - which are enjoying a healthy year - rose nearly 2% in trading after US stock markets had closed.
FTSE-100: down -0.31 to 6728.44
Dow Jones: down -0.28 to 17051.73
Dax: down -1.11 to 9612.05
Cac-40: down -0.71 to 4304.74
Nikkei: up +0.95 to 15360.68
Hang Seng: up +1.28 to 23686.56
US dollar: buys €0.73940 and £0.58540
Sterling: buys $1.70800 and €1.26290
Oil: $107.92 up +0.5