News Corp Chief Executive Rupert Murdoch exited his London home on Sunday with his arm around embattled newspaper chief Rebekah Brooks, and told Reuters that she was his first priority.

Murdoch, who flew into Britain earlier on Sunday to deal with an escalating phone-hacking scandal at his News of the World tabloid that Brooks used to edit, answered: This one, gesturing at Brooks, when asked what his first priority was.

The two, both smiling, then went into the Stafford hotel opposite Murdoch's apartment in the upmarket Mayfair area of London.

(Reporting by Paul Sandle)