International
Thursday Newspaper Review - Irish Business News and International Stories - - November 13, 2014
By Finfacts Team
Nov 13, 2014 - 1:41 PM

Printer-friendly page from Finfacts Ireland Business News - Click for the News Main Page - A service of the Finfacts Ireland Business and Finance Portal

Irish Independent

SEVEN out of ten first time buyer mortgages approved by Ulster Bank this year wouldn’t have met the proposed Central Bank mortgage deposit rules, the head of Ulster has said.

The Central Bank wants the amount that banks can loan home buyers capped at 80pc of the value of the property.

But Ulster Bank chief executive Jim Brown warned this morning that the proposals would impact on the ability of many first time buyers to acquire a home.

“Other hopeful first time buyers will struggle to save a higher deposit while paying increasing rents,” he told TDs and Senators at the Oireachtas Finance Committee.

State broadcaster RTE and taxpayer-rescued AIB Bank have emerged as having the best-funded pension schemes.

AIB was allowed to move €1.1bn off its balance sheet to shore up its pension two years ago.

This has meant the deficit in its defined benefit pension scheme, which amounted to €763m at the end of 2011, has now all but disappeared.

A new report from pensions advisers LCP found that the bank's scheme is now 98pc funded - its assets are almost equal to its liabilities.

The details on the pension came as AIB boss David Duffy is set to tell an Oireachtas Committee today that there were 942 AIB staff members on remuneration packages of over €100,000 out of a workforce of 12,648 at the end of last year.

Do you ever dream of working in a glamorous, gleaming glass building in Dublin's Docklands? Many people who end up there pass through another glass temple - the Quinn School of Business at University College Dublin.

Professor Ciaran O hOgartaigh runs the show there. He's the university's dean of business, head of the Quinn school (the gleaming glass box), and the Smurfit Graduate School in Blackrock, Co Dublin.

The Smurfit school's MBA programme is the only Irish one in the Financial Times's global MBA rankings, but O hOgartaigh says rankings get too much attention.

"We do tend to overestimate them and as an accountant I know the fragility of numbers in that they can change for various reasons. I met a dean from a Chinese business school…they're not ranked but they're an excellent business school.

Irish Times

It would be easy - and maybe even understandable - for most Irish consumers outside of the farming community to dismiss the current row between beef farmers and the meat processing plants as an irrelevancy.

But to do so would be a mistake because the row has wide ranging implications for all consumers. At its very root, it has been about control, transparency, fairness and - ultimately - the prices we all have to pay for beef in our supermarkets and in our local butchers.

The tentative agreement reached between the farmers and the processors overnight focussed on complex issues including weight specifications, quality payment systems and dual base pricing systems based on breed, age or weight and while such things matter a great deal to farmers, they do not grab most consumers’ attention. It would be easy - and maybe even understandable - for most Irish consumers outside of the farming community to dismiss the current row between beef farmers and the meat processing plants as an irrelevancy.

But to do so would be a mistake because the row has wide ranging implications for all consumers. At its very root, it has been about control, transparency, fairness and - ultimately - the prices we all have to pay for beef in our supermarkets and in our local butchers.

A large group of professional forecasters cut their outlook for euro zone inflation and growth, underlining a trend that could prompt the European Central Bank to take more policy action to kick-start the region’s flagging economy.

The 61 economists, academics and other forecasters surveyed by the ECB expect euro zone inflation of 1.0 per cent next year and 1.4 per cent in 2016, data released on Thursday showed - down from earlier forecasts of 1.2 per cent and 1.5 per cent respectively.

Citing falling oil prices and widespread political tensions, they also predicted economic growth would slow to 1.2 per cent next year, having previously forecast 1.5 per cent.

A local division of the Unified Patent Court will be established in Ireland, allowing businesses to resolve disputes around patents locally, more cheaply, and more easily than before.

The court will be established once the State ratifies the international Agreement on a Unified Patent Court, which was signed during the Irish EU Presidency in February 2013. The agreement, which includes the creation of a European Patent, has not yet been ratified by all states but the court is expected to be up and running in 2016.

When established, the Court will allow individuals/businesses to file actions under patent law in a single court case to decide on the validity of a patent throughout up to 25 EU Member States thereby eliminating the need for country-by-country patent litigation and thereby substantially reducing legal costs and time.

Irish Examiner

The Irish entertainment and media landscape is at a tipping point with advertising revenue outpacing consumer revenue as the migration to digital, continues according to a new report.

PricewaterhouseCoopers’ Global Entertainment and Media Outlook report also highlights the emergence of mobile, multi-platform and on-demand services and the clear need for businesses to find models that monetise the digital consumer, with two thirds of revenue growth forecast for the industry projected to arise from digital.

Over the next four years, the sector is forecast to grow at a rate of 2.3% in Ireland, reaching a spend of €4.25bn in 2018.

Europe

Euro Topics: EU Commission President Jean-Claude Juncker made a statement on Wednesday for the first time since the Luxembourg leaks revelations. Speaking to the EU Parliament he announced measures to combat tax avoidance. Some commentators don't believe the former Luxembourg prime minister's claims that he will take serious action against tax havens. Others see him as the man best suited to the task.

Let the fox guard the hens: The Austrian state-owned Wiener Zeitung sees Juncker, with his insider knowledge of Luxembourg's tax break model, as the right man for the job of clearing up the tax break affair: "When Ikea gets away with paying just 48,000 euros in corporate tax on 2.5 billion euros of profit, it's plain for all that this is no way to maintain a European social model. Juncker is now EU Commission president, so it's up to him to put an end to this. Putting the fox in charge of the henhouse can be a valid strategy. Because at least Juncker has detailed knowledge of how tax evasion works. If anyone can crack down on it effectively, it's him. The finance ministers and leaders of the 28 EU member states should stay out of the affair. The Netherlands, Cyprus, Malta, the UK and Austria have all lured businesses with tax breaks. Everyone must have realised that these models bordered on tax fraud. Juncker should put an end to it as quickly as possible. His resigning would be pointless."

Europe pathos hindering investigation: Because EU Commission chief Jean-Claude Juncker has already used dramatic words in the past to fight for Europe, the liberal  German weekly paper Die Zeit remains dubious about his plans to combat tax evasion: "Recently Juncker has repeated a phrase that sounds like the motto of the new Commission's term in office: 'We are last-chance Europe.' ... The phrase is foolish because he makes it sound like there's only one very dramatic alternative: the choice between a Europe and a non-Europe. ... Anyone who talks like that isn't doing politics but pursuing a mission - and is per se beyond reproach for trivial matters such as tax deals, for example. ... What is undermining the Union in the long run is insincerity and false pathos. Two weeks ago when he took up office, Juncker promised a 'new start'. So far there has been no indication that he'll keep his word."


© Copyright 2011 by Finfacts.com