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Markets News Afternoon: Aer Lingus delays 2009 results because of staff ballots; OECD unemployment rate falls to 8.7% in January driven by US and Japan
By Finfacts Team
Mar 8, 2010 - 4:55:17 PM
The unemployment rate for the OECD area fell slightly to 8.7% in January 2010, reflecting drops of 0.3 percentage points in the United States and Japan. However, the latest figures for the United States show that the unemployment rate remained unchanged at 9.7% in February.
Rates in the Eurozone stabilised in January at 9.9% and in many countries, notably France and Italy, rates continued their recent upward trend. In Canada, the unemployment rate was 8.3% in January 2010, 0.1% lower than in the previous month. The unemployment rate rose sharply in Korea, from 3.6 % in December last year to 4.8 % in January, as a result of a large rise in the labour force which, however, is likely to be temporary. In November 2009, the latest data available, the unemployment rate in the United Kingdom was 7.8%, the same as in the previous month. Ireland's rate is 13.8%.
Separately, Switzerland reported today that the unemployment rate stood at 4.4%, down 0.1% on January. This is the first drop in nine months. Overall there were 172,999 registered unemployed in February, down 2,766 on the month before.
In all OECD countries rates remained at higher levels than a year ago, varying from 0.3% higher in Australia to 4.4% in Ireland, with the OECD rate 1.4% higher.
Aer Lingus:
Aer Lingus Group plc announced this afternoon that it is deferring the release of its preliminary results for the year ended 31st December 2009. The preliminary results which had been scheduled for release at 7am tomorrow contained a restructuring charge that is consistent with the agreements reached with union representatives, and recommended by them to their members, in relation to the company's planned €97m cost savings programme. Following the outcome of recent staff ballots it is necessary to revise the provision for restructuring costs and amend the preliminary results accordingly.
Italian Commissioner Tajani said the European Commission may discuss the possible creation of a European monetary fund when it meets Tuesday. "What we haven't seen so far is cash to support the adjustment programs of Greece and elsewhere," Paul Mortimer Lee from BNP Paribas said Monday:
Aer Lingus said it has been notified of the results of four of the five staff ballots on the cost reduction proposals. The airline said it gratefully acknowledges the support of its Pilots (IALPA), Middle Management (IAESA) and SIPTU (Ground Operations/Support areas/ certain Cabin Crew) for the restructuring that is needed to return the airline to profitability. However, cabin crew represented by IMPACT have rejected the proposals. The ballot result for the craft union, which represents maintenance staff, is expected late this evening.
The airline said despite the outcome of the IMPACT ballot, it is determined to achieve the annualised cost savings of €97m targeted by the cost reduction programme over the period to 2012. These savings are vital to realign the cost base of the company and position Aer Lingus for a successful future. The Company's Board of Directors will meet tomorrow to formally approve the steps that will now be taken to achieve these cost savings.
A brief trading update for the year ended 31 December 2009 will be released tomorrow morning and a revised announcement date for the preliminary results will be issued in due course.
Discussing the future of the Fed with CNBC's Steve Liesman and Randall Kroszner, a former Federal Reserve Board Governor.
US markets
In New York, the Dow has dipped 14 points or 0.14% to 10,552.
The S&P 500 has fallen 0.12% and the Nasdaq has climbed 0.09%.
Iceland's referendum results showed the country rejected a $5.3 billion plan to repay the UK and Netherlands for swaps spawned by the collapse of Icesave. "The UK and the Netherlands have an interest in seeing Iceland prosper without help from the IMF," Daniel Gros, director at Centre for European Policy Studies, said Monday.
Oil
On the New York Mercantile Exchange, oil for April 2010 delivery is trading at $81.20 down 30 cents from Friday's close. In London, Brent crude for April delivery is trading at $79.93 a barrel.
Currencies
The euro is trading at $1.3613 and at £0.9049.
For live currency updates, check the right-hand column of the Finfacts home page.The dollar traded at a record low $1.6038 per euro on July 15, 2008.
