The Business: Wednesday June 18 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
The Bank of England shouldered a £200,000 bill to move Mark Carney and his family from Canada to their new home in London, reports The Times. The one-off payment was given on top of the £586,010 he received for his first eight months in the job. The Canadian is on an £874,000 annual package which comprises of a basic salary of £480,000, a £250,000 living allowance and £144,000 of pension contributions.
YouTube will embark on a mass cull of music videos by artists including Adele and Arctic Monkeys after a raft of independent record labels refused to agree to licensing terms for its new subscription service. Record labels representing 95% of the music industry have signed up to the new terms, says the video-sharing website, and moves to block videos from the remainder of the industry will begin “in a matter of days” as YouTube bids to enter the fast-growing market for music subscription.
Mark Carney says the Bank of England "will not hesitate" to take further steps to cool our booming housing market and stop the economy from boiling over. As it was revealed that the average UK house price is ten times bigger than the average salary, the governor said the Bank was prepared to use its so-called macro-prudential toolkit to support the steps it has taken to block people from taking out unaffordable mortgages.
Warren Buffett has dismissed rumours that he is working on a takeover of Coca-Cola. America’s most prominent investment guru denied the suggestions made by an US investment manager that he is seeking to take Coke private. "Absolutely no chance of that," Buffett said in a TV interview yesterday afternoon. Shares in Coca-Cola, the world’s biggest drinks company, rose by almost 1% after the rumour had first arisen.
Supermarket Morrisons is to slash 2,600 jobs in a management overhaul as it scrambles to revive its fading fortunes, reports The Independent. Chief executive Dalton Philips, who faced stinging criticism earlier this month from former boss Sir Ken Morrison, said: "This is the right time to modernise the way our stores are managed. These changes will improve our focus on customers and lead to simpler, smarter ways of working.”
“Amazingly, not every family jetting in from Ottawa — or anywhere else for that matter — lands the Bank of England with a £200,000 relocation bill. So, you’d think Mark Carney might show a bit more gratitude for such help on the property front.” The Times’ Alistair Osborne argues that an interest rates rise will not blow the roof off housing.
FTSE-100: up +0.18 to 6766.77
Dow Jones: up +0.16 to 16808.49
Dax: up +0.37 to 9920.32
Cac-40: up +0.58 to 4536.07
Nikkei: up +0.92 to 15113.38
Hang Seng: up +0.01 to 23206.30
US dollar: buys €0.73830 and £0.58930
Sterling: buys $1.69670 and €1.25270
Oil: $113.40 up +0.4