The Business: Wednesday August 13 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
All eyes will be on the Bank of England today as it publishes its latest quarterly outlook for the UK economy. Homeowners and savers will be scanning the report for any hints on when interest rates may begin to rise. November this year or February 2015 are popular forecasts for the move. However, economic recovery remains imbalanced with only the services sector back above its pre-recession peak.
The British games company behind the Candy Crush Saga lost more than $1.4bn in value last night, after its flagship title began to run out of steam. The Daily Telegraph reports that King saw revenues slump 5% to $611m in the second quarter, promoted by a slowdown in the amount of money Candy Crush players are willing to splash on short-cuts, extra playing time and virtual goods.
Britain’s recession was not as deep as previously thought, says the Office for National Statistics. Data published by the ONS yesterday showed that economic output fell by just 4.6% between 2007 and 2009. It had previously estimated that GDP shrank by as much as 6%. However, the recession will still go down in the history books as the worst downturn since the Second World War.
Chinese tourists spend an average of £650 per day on foreign high streets – but the complexity of British holiday visas mean they are staying away from these shores, warn business leaders. With research showing that a quarter of Chinese holidaymakers chose their destination based on shopping opportunities, pressure is growing on the government to make it easier to obtain a British visa.
“The scale of the turnaround was much greater than I thought. But if you love doing turnarounds then this is the dream gig, whether it’s going well or badly.” Ladbrokes chief Richard Glynn vows to fight on despite a 34% profits slump on his watch.
The income gap between America’s richest and poorest metropolitan areas has reached its widest on record, reports the Financial Times. The rebound from the most recent financial crisis has seen the ratio hit its most unequal since records began 45 years ago. Boston – ranked at 10 – reported a per-capita income 1.61 times that of Cincinnati ranked at 90.
FTSE-100: down -0.01 to 6632.42
Dow Jones: down -0.06 to 16560.54
Dax: down -1.21 to 9069.47
Cac-40: down -0.85 to 4162.16
Nikkei: up +0.23 to 15195.86
Hang Seng: up +0.03 to 24697.83
US dollar: buys €0.74800 and £0.59430
Sterling: buys $1.68240 and €1.25840
Oil: $102.93 down -1.7