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Thursday Newspaper Review - Irish Business News and International Stories - - August 28, 2014
By Finfacts Team
Aug 28, 2014 - 3:38 PM
Tanaiste Joan Burton has dropped a Labour Party plan for a
valuable tax break for squeezed middle-income families with children.
Her predecessor, Eamon Gilmore, put a child tax credit on the table as a key
Budget demand from the junior coalition partners to ease the burden for
Mr Gilmore hoped it would win favour with families across the country as Labour
struggled to regain support.
However, Ms Burton is no longer demanding the tax measure in the negotiations
for October's Budget.
A US Judge will decide next month if bust developer Sean Dunne
gets to withdraw from bankruptcy proceedings in America.
The court-appointed bankruptcy trustee, as well as creditors NAMA and Ulster
Bank, yesterday outlined plans during a brief hearing in Connecticut to oppose
the surprise application by the former 'Baron of Ballsbridge.'
In a shock move last week, the former developer applied to withdraw his bid for
bankruptcy in the US on the basis that he "did not have the resources" to
continue to defend creditors' objections to him walking away from his debt.
The European Central Bank has hired BlackRock Solutions to
provide consultancy services in its preparations for a programme to buy
asset-backed securities (ABS), an ECB spokesman said today.
BlackRock, the world's largest money manager, will provide advice on the design
and implementation of a potential ABS purchase programme, but all final
decisions will be taken by the ECB itself, the spokesman said.
BlackRock declined to comment on its mandate with the ECB.
ECB President Mario Draghi said on Friday the central bank's preparations for
outright purchases of ABS were "fast moving forward and we expect that it should
contribute to further credit easing."
Poorer people in Ireland pay out a greater share of their income
in tax than their richer counterparts, according to new research.
The finding, contained in a report by the Nevin Economic Research Institute,
runs counters to the notion that Ireland’s tax code is progressive, in other
words, one in which the tax rate rises as income increases.
The institute’s research, which is based on data from Central Statistics
Office’s most recent household budget survey, found Irish households pay 24 per
cent of their income in taxes, both direct and indirect.
Paddy Power’s operating profit fell sharply in the first half of
the year after a run of unfavourable sports results, but the Irish gambling
company said a second-half rebound should deliver full-year earnings growth.
Paddy Power, which has more than doubled its annual profits since 2009 on an
overseas expansion and a strong performance online, leads the industry in
smartphone and tablet betting.
Its operating profit fell 20 per cent to €60.1 million, or 14 per cent on a
constant-currency basis, after warning earlier this year of a “horrific run of
sports results”. “There has been an extraordinary run of results. We always say
to people that the run of results can go against bookies. Every separate event
is a new coin toss,” chief financial officer Cormac McCarthy said.
Pernod Ricard, the world’s second-largest distiller, plans to
eliminate jobs as it seeks to generate €150 million of savings following a slump
in demand in China.
The cuts, which represent about 900 jobs or 5 per cent of the Paris-based
distiller’s workforce, are part of a programme of measures to help the company
operate more efficiently, chief executive officer Pierre Pringuet said.
Pernod reported an 8 per cent drop in annual earnings as currency fluctuations
and a Chinese government clampdown on conspicuous consumption weighed on revenue
Earnings before interest, taxes and some one-time items totaled €2.06 billion,
the maker of Absolut vodka said.
Ryanair has predicted that as much as 30% of its customer base
will be made up of business travellers within the next five years.
The low-cost operator yesterday formally unveiled its much-anticipated new
product offering specifically aimed at those travelling on business trips; a
market segment traditionally ruled by the likes of British Airways and
‘Ryanair Business Plus’ is the latest element of the airline’s ‘Always Getting
Better’ customer service improvement programme; which has already seen a
lowering of booking fees, an easier to use website, a loosening of baggage
restrictions and the launch of a new ‘app’ to enable easier booking via
smartphone and tablet devices.
The new service allows users a greater baggage allowance — of up to 20kg —
fast-tracking through security at selected airports, premium seats, the option
of changing their flight at short-notice free of charge and priority boarding.
Prices start at €69.99.
Euro Topics: The fighting continues unabated in
Ukraine even after the crisis meeting in Minsk between Russian President
Vladimir Putin and his Ukrainian counterpart Petro Poroshenko. Moreover the US
government has reported the presence of a Russian military convoy in the
south-east of the country. The summit achieved nothing, commentators write,
concluding that part of Donbas is already lost.
The war rages on: The meeting between the
Ukrainian and Russian presidents failed to produce any results, the liberal
Portuguese business daily Jornal de Negócios laments: "Vladimir Putin and
Petro Poroshenko greeted each other in Belarus, but the whirlwind of war
continues to advance and destroy any hopes of peace. ... The insecurity that
this war brings forms the decisive framework for political negotiations on the
Ukraine-Russia conflict. In the short term they will also be influenced by the
new balance of power which emerges from the election of the parliament in Kiev
and next week's Nato summit in Cardiff."
Part of Donbas is already lost: The Ukrainian army is too weak to hold on to
eastern Ukraine and Poroshenko's government has only one option, the
left-liberal German daily Süddeutsche Zeitung writes in view of the reported
invasion by Russian soldiers: "For better or for worse, it must tell the
population that the part of the Donbas that's still in the hands of the
pro-Russian forces is lost - either because reconquering it would cost too many
lives and only exacerbate the tensions with Moscow, or because negotiations
really were carried out with the separatists but they hardly stand a chance of
resulting in the implementation of Poroshenko's peace plan. This plan foresees
amendments to the constitution, the protection of the Russian language and new
jobs in the region, and that's as it should be. However it would entail the
separatists handing the decision-making authority over Donbas back to Kiev. And
by the looks of things there's precious little chance of them doing that."
France's left committing political suicide: With the French cabinet reshuffle
the Socialists are doing their utmost to commit political suicide, the
left-liberal French daily Libération believes: "In 2014 the French left is
committing hara-kiri. It's slitting its belly open just like the German left did
in the 30s. The worrying economic conditions, a catastrophic social situation,
terrible results in the by-elections and ominous opinion polls all seem to sound
the death knell for the party. Certainly, France was in pretty bad shape even
before François Hollande became president and Manual Valls prime minister. But
now it's even worse off. ... François Mitterrand was perhaps not really on the
left, but no one doubted his stature as president. Today the majority is falling
apart. ... The left in this country is a desperate minority, only held together
by sturdy institutions."
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