28/06/2013 World Business Report

News. Now for the latest financial news on World Business Report.

Breaking up is hard to do. The Murdoch Empire splits in two,

separating booming TV and movies from the struggling newspaper

He's been called the rock star of global finance, but can Mark Carney

live up to the hype as he takes over at the Bank of England?

Welcome to World Business Report. Evidence that Japan it has arrested

did inflation problem. We start with this man - a billionaire 11

times over and one of the most powerful people in the global media

business. Rupert Murdoch recently announced he's splitting from his

wife - and today it's break-up time again. The Murdoch media empire -

News Corporation - is splitting into two separate companies. One

will focus on newspaper publishing, and retain the News Corp name. The

other - the film and TV business - will be known as 21st Century Fox.

Samira Hussain reports from New York on what's behind the move.

This is the second largest media conglomeration in the world. It's

also the baby of Rupert Murdoch but it is the screen, TV and movies

that have made News Corp the bulk of its cash and not the newspapers.

A lagging revenue from the private property is dragging down the

overall profitability of News Corp. While there are certainly efforts

to a fault to change the printer and a revamp it to find

modernisation streams, EO endeavours are not going as fast or

as nimble as the shareholders want. People are doing these less and

less, buying newspapers. The shrinking readership means

companies do not advertise as much making newspapers not as profitable.

Further upsetting shareholders is the phone hacking scandal at News

Of The World one of his UK newspapers. That led to

parliamentary hearings into the company behaviour and spent more

than $350 million in settlements and legal fees so far. The

reputation of News Corp has taken a beating. Why would a Saudi

businessman such as Rupert Murdoch want to keep the newspapers as part

of his empire at all? This is his first love. He is passionate. He

often goes with that and he believes in it. He caused many of

the editors to find out what is happening and he wants the news

before anyone else and it's a personal passion of his and he is

always looking for ways to prop this up. Rupert Murdoch is not the

only one. The American famous investors Warren but it has been on

a buying spree of newspapers a sign that these may still have a future.

To Asia now where there's a positive mood on the markets to end

the week. Mariko Oi is in our Singapore office. Some good news

coming from Japan? That's right. As a result the Nikkei has risen 3.5%.

There are some reasons for that first got the efforts to tackle the

decades of falling prices known as deflation seems to be working.

Consumer prices did not fall for the first time in seven months in

the month of May and economists say thanks to the economic reviews and

that aggressive policy from the new government. Factories have been

very busy with industrial output rising 2%. The Chinese Central Bank

said on Friday that it may supply extra funding. There's been

concerns over liquidity shortages in the market and that was rattling

markets in Asia and around the world. That statement is very

positive for the Asian markets. to this place - the Old Lady of

Threadneedle Street, otherwise known as the Bank of England. It is

a hugely important institution. It not only sets UK interest rates and

issues Britain's currency. But under new powers also regulates the

entire financial industry in the UK, from banks to insurers to

investment companies. As of Monday it is under new management. This

weekend the man on the left - Mervyn King - steps down as

governor after ten years in charge. On the right - the new boss, Mark

Carney, until recently the Governor of the Bank of Canada. He'll be the

first foreigner to run the Bank of England in its 300-year history. A

former top Goldman Sachs banker before moving into politics, he's

been described as a financial rock star. Our Economics Editor

Stephanie Flanders, has been to Canada to find out why. By Canada

had a good financial crisis and the recession was quite shallow

compared to others but it bounced back faster and is the only country

in the G7 not spending money to bail-out the banks. No wonder the

finance minister wanted ahead of the Central Bank of Canada to run

the bank of England. We no crisis came in 2000 debate the economy was

affected and they were very helpful. We worked as a team. They had old-

fashioned banks and in the boom years they were teased him Wall

Street for being too cautious but not any more. The banks and the

banking system were quite well managed and as a result the

institutions were exposed to some degree but they managed through the

crisis very effectively. That meant that when interest rates were

slashed it gave a big boost to the economy more so than Britain and

America because the banks were able to lend. That's California star.A

much of the lending went into housing. The head of advantage of

that. Some of them are feeling the pinch but there's a slight increase

in interest rates. I hoped they don't have to pay that price.

Perhaps Mark Carney is lucky as well as clever leaving Canada when

things started to slow down but Britain is not the only place that

could do with a lucky Governor of the Central Bank. Now to Brussels

where European leaders are about to start the second day of their EU

Summit. This time yesterday we were bringing you news of a deal to

protect taxpayers from paying for future bank bailouts. Later on

Thursday leaders were hailing an agreement on EU spending for the

next seven years, only to have Britain refuse to sign off on the

budget deal at the last minute. Some summit watchers have been

quick to point out this only highlights the deep divisions in

Europe over whether to cut or spend its way out of the economic crisis.

Kathleen Brooks is Research Director at forex.com. It's showing

that Britain is a thorn in the side of Europe for its refusal to sign

off but there was a deal reached in the end? There was indeed.

Treacherous negotiations and Britain is in the fighting for the

rebates. We have the eurozone conflict. Austerity and those who

want more spending but it looks like austerity is winning at the

moment led by the Germans. That will be the first ever cut to the

EU spending in history for the next seven years. That will please many

taxpayers around Europe. Yesterday we had news about banking customers

and taxpayers protected if there is any more bank bail-outs and that

has worried many people. It has because of the scale of problems

within the banking sector such as Spain and Italy in the firing line.

It's a big deal especially for German taxpayers and there's an

election in Germany in the next few months and it's good news for

Angela Merkel. In Germany, right across Europe, Spain in particular

with unemployment a real issue. What was said in the summer about

young people in the job market? We look at Spain about 50% find it

difficult find a job. Absolutely. High level things with 6 billion

euros in the Budget towards unemployment spending and I think