Business

Morning business round-up: News Corp shares hit low

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Market Data

Last Updated at 22:47 GMT

Market index Current value Trend Variation % variation
Dow Jones 21858.32 Up 14.31 0.07%
Nasdaq 6256.56 Up 39.68 0.64%
FTSE 100 7309.96 Down -79.98 -1.08%
Dax 12014.06 Down -0.24 -0.00%
Cac 40 5060.92 Down -54.31 -1.06%
BBC Global 30 10108.11 Down -8.97 -0.09%

News Corporation's share price falling to a two-year low was the main business headline.

The decline comes as its UK newspaper business, News International, continues to be mired in phone hacking allegations.

And on Tuesday, News Corporation's chairman and chief executive Rupert Murdoch is to appear before the UK Parliament's Culture, Media and Sport Committee to answer MPs' questions.

The second main focus of global investor attention is the continuing concerns over eurozone debt.

Banking shares in Europe have fallen sharply in the first day of trading after the European Union released the results of its bank stress tests.

Eight European banks failed the test on their finances, while a further 16 were said to be near the danger zone.

UK travel operator Thomas Cook announced a one-year extension to its banking facilities.

The arrangement, comprising a £200m loan and an £850m credit facility, which can be called upon if required, now runs until May 2014.

There was bad news from Dutch electronics group Philips, which reported a 1.3bn euros loss.

The company is now set to cut costs by 500m euros ($700m; £437m) in the face of falling sales.

The unusual headline of the day was provided by oil group Cairn Energy.

It came as Greenpeace activists dressed as polar bears to protest inside Cairn's headquarters in Edinburgh.

The protesters are opposed to the company's work in Greenland.

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In Asia, Taiwanese mobile phone company HTC said it would appeal against a US ruling that it infringed two Apple patents.

If Friday's ruling by the US International Trade Commission is not overturned, the US may ban imports of some HTC phones.

HTC and Apple are rivals in the smartphone market and analysts said the ruling may have industry-wide implications.

The main story from mainland China was the government intervening to try to reduce a big rise in pork prices.

Beijing is to do this by releasing supplies of pork onto the market

At the same time it is planning to build up its reserves of pork, which is the country's most widely consumed meat product.

The price of pork in China has jumped by almost 60%, helping to push the country's rate of inflation towards a three-year high.

In Japan, the aftermath of the radiation leak at the Fukushima Daiichi nuclear power plant is continuing to affect the economy.

The government said it is set to suspend all cattle shipments from the Fukushima area as concerns over radiation-tainted beef escalate.

It is just the latest health scare linked to the plant which was damaged by March's earthquake and tsunami.

At the BBC World Service's Business Daily radio programme, Monday's show takes a closer look at naked credit default swaps, the financial incentives which may make a eurozone debt disaster more likely.

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