:00:17. > :00:20.News. Now for the latest financial news on World Business Report.
:00:20. > :00:22.Breaking up is hard to do. The Murdoch Empire splits in two,
:00:23. > :00:30.separating booming TV and movies from the struggling newspaper
:00:30. > :00:39.He's been called the rock star of global finance, but can Mark Carney
:00:39. > :00:49.live up to the hype as he takes over at the Bank of England?
:00:49. > :00:54.
:00:54. > :00:57.Welcome to World Business Report. Evidence that Japan it has arrested
:00:57. > :01:00.did inflation problem. We start with this man - a billionaire 11
:01:00. > :01:02.times over and one of the most powerful people in the global media
:01:02. > :01:06.business. Rupert Murdoch recently announced he's splitting from his
:01:06. > :01:09.wife - and today it's break-up time again. The Murdoch media empire -
:01:09. > :01:14.News Corporation - is splitting into two separate companies. One
:01:14. > :01:17.will focus on newspaper publishing, and retain the News Corp name. The
:01:17. > :01:25.other - the film and TV business - will be known as 21st Century Fox.
:01:25. > :01:31.Samira Hussain reports from New York on what's behind the move.
:01:31. > :01:35.This is the second largest media conglomeration in the world. It's
:01:35. > :01:41.also the baby of Rupert Murdoch but it is the screen, TV and movies
:01:41. > :01:46.that have made News Corp the bulk of its cash and not the newspapers.
:01:47. > :01:51.A lagging revenue from the private property is dragging down the
:01:51. > :01:57.overall profitability of News Corp. While there are certainly efforts
:01:58. > :02:02.to a fault to change the printer and a revamp it to find
:02:02. > :02:10.modernisation streams, EO endeavours are not going as fast or
:02:10. > :02:14.as nimble as the shareholders want. People are doing these less and
:02:14. > :02:21.less, buying newspapers. The shrinking readership means
:02:21. > :02:25.companies do not advertise as much making newspapers not as profitable.
:02:25. > :02:30.Further upsetting shareholders is the phone hacking scandal at News
:02:30. > :02:35.Of The World one of his UK newspapers. That led to
:02:35. > :02:39.parliamentary hearings into the company behaviour and spent more
:02:39. > :02:44.than $350 million in settlements and legal fees so far. The
:02:44. > :02:48.reputation of News Corp has taken a beating. Why would a Saudi
:02:48. > :02:55.businessman such as Rupert Murdoch want to keep the newspapers as part
:02:55. > :03:00.of his empire at all? This is his first love. He is passionate. He
:03:00. > :03:03.often goes with that and he believes in it. He caused many of
:03:03. > :03:07.the editors to find out what is happening and he wants the news
:03:07. > :03:13.before anyone else and it's a personal passion of his and he is
:03:13. > :03:18.always looking for ways to prop this up. Rupert Murdoch is not the
:03:18. > :03:23.only one. The American famous investors Warren but it has been on
:03:24. > :03:27.a buying spree of newspapers a sign that these may still have a future.
:03:27. > :03:35.To Asia now where there's a positive mood on the markets to end
:03:36. > :03:45.the week. Mariko Oi is in our Singapore office. Some good news
:03:45. > :03:50.coming from Japan? That's right. As a result the Nikkei has risen 3.5%.
:03:50. > :03:55.There are some reasons for that first got the efforts to tackle the
:03:55. > :03:59.decades of falling prices known as deflation seems to be working.
:03:59. > :04:06.Consumer prices did not fall for the first time in seven months in
:04:06. > :04:11.the month of May and economists say thanks to the economic reviews and
:04:11. > :04:19.that aggressive policy from the new government. Factories have been
:04:19. > :04:26.very busy with industrial output rising 2%. The Chinese Central Bank
:04:26. > :04:30.said on Friday that it may supply extra funding. There's been
:04:30. > :04:35.concerns over liquidity shortages in the market and that was rattling
:04:35. > :04:40.markets in Asia and around the world. That statement is very
:04:40. > :04:43.positive for the Asian markets. to this place - the Old Lady of
:04:43. > :04:52.Threadneedle Street, otherwise known as the Bank of England. It is
:04:52. > :04:54.a hugely important institution. It not only sets UK interest rates and
:04:54. > :04:57.issues Britain's currency. But under new powers also regulates the
:04:57. > :05:01.entire financial industry in the UK, from banks to insurers to
:05:01. > :05:04.investment companies. As of Monday it is under new management. This
:05:04. > :05:08.weekend the man on the left - Mervyn King - steps down as
:05:08. > :05:12.governor after ten years in charge. On the right - the new boss, Mark
:05:12. > :05:16.Carney, until recently the Governor of the Bank of Canada. He'll be the
:05:16. > :05:19.first foreigner to run the Bank of England in its 300-year history. A
:05:19. > :05:23.former top Goldman Sachs banker before moving into politics, he's
:05:23. > :05:33.been described as a financial rock star. Our Economics Editor
:05:33. > :05:35.
:05:35. > :05:39.Stephanie Flanders, has been to Canada to find out why. By Canada
:05:39. > :05:44.had a good financial crisis and the recession was quite shallow
:05:44. > :05:49.compared to others but it bounced back faster and is the only country
:05:49. > :05:53.in the G7 not spending money to bail-out the banks. No wonder the
:05:53. > :05:59.finance minister wanted ahead of the Central Bank of Canada to run
:05:59. > :06:05.the bank of England. We no crisis came in 2000 debate the economy was
:06:05. > :06:09.affected and they were very helpful. We worked as a team. They had old-
:06:09. > :06:15.fashioned banks and in the boom years they were teased him Wall
:06:15. > :06:19.Street for being too cautious but not any more. The banks and the
:06:19. > :06:23.banking system were quite well managed and as a result the
:06:23. > :06:28.institutions were exposed to some degree but they managed through the
:06:28. > :06:31.crisis very effectively. That meant that when interest rates were
:06:31. > :06:37.slashed it gave a big boost to the economy more so than Britain and
:06:37. > :06:42.America because the banks were able to lend. That's California star.A
:06:42. > :06:48.much of the lending went into housing. The head of advantage of
:06:48. > :06:57.that. Some of them are feeling the pinch but there's a slight increase
:06:57. > :07:02.in interest rates. I hoped they don't have to pay that price.
:07:02. > :07:05.Perhaps Mark Carney is lucky as well as clever leaving Canada when
:07:05. > :07:09.things started to slow down but Britain is not the only place that
:07:10. > :07:13.could do with a lucky Governor of the Central Bank. Now to Brussels
:07:13. > :07:16.where European leaders are about to start the second day of their EU
:07:16. > :07:19.Summit. This time yesterday we were bringing you news of a deal to
:07:19. > :07:22.protect taxpayers from paying for future bank bailouts. Later on
:07:22. > :07:25.Thursday leaders were hailing an agreement on EU spending for the
:07:25. > :07:29.next seven years, only to have Britain refuse to sign off on the
:07:29. > :07:32.budget deal at the last minute. Some summit watchers have been
:07:32. > :07:38.quick to point out this only highlights the deep divisions in
:07:38. > :07:46.Europe over whether to cut or spend its way out of the economic crisis.
:07:46. > :07:50.Kathleen Brooks is Research Director at forex.com. It's showing
:07:50. > :07:55.that Britain is a thorn in the side of Europe for its refusal to sign
:07:55. > :08:00.off but there was a deal reached in the end? There was indeed.
:08:00. > :08:06.Treacherous negotiations and Britain is in the fighting for the
:08:06. > :08:11.rebates. We have the eurozone conflict. Austerity and those who
:08:11. > :08:16.want more spending but it looks like austerity is winning at the
:08:16. > :08:22.moment led by the Germans. That will be the first ever cut to the
:08:22. > :08:27.EU spending in history for the next seven years. That will please many
:08:27. > :08:32.taxpayers around Europe. Yesterday we had news about banking customers
:08:32. > :08:37.and taxpayers protected if there is any more bank bail-outs and that
:08:37. > :08:43.has worried many people. It has because of the scale of problems
:08:43. > :08:47.within the banking sector such as Spain and Italy in the firing line.
:08:47. > :08:50.It's a big deal especially for German taxpayers and there's an
:08:50. > :08:55.election in Germany in the next few months and it's good news for
:08:55. > :09:03.Angela Merkel. In Germany, right across Europe, Spain in particular
:09:03. > :09:08.with unemployment a real issue. What was said in the summer about
:09:08. > :09:16.young people in the job market? We look at Spain about 50% find it
:09:16. > :09:18.difficult find a job. Absolutely. High level things with 6 billion
:09:18. > :09:28.euros in the Budget towards unemployment spending and I think
:09:28. > :09:35.