Bank of Ireland today announced that its subsidiary, BOI Capital Holdings Ltd, has purchased US dollar denominated Tier 1 securities from two separate securities with a face value of $600 million. The securities were purchased for 40% of the face value of the securities in line with the previously announced minimum tender prices.
Including the previously completed euro and sterling tender offers the nominal value of securities repurchased is circa €1.7 billion and the combined equity accretion for the Bank of Ireland Group from the tender offers is expected to be circa €1 billion.
Including the impact of the tender offers on a proforma basis the estimated capital ratios of the Group at March 2009 would have been
Proforma Reported
Equity Tier 1 7.1% 6.2%
Core Tier 1 10.5% 9.5%
Total Tier 1 11.3% 12.0%
Total Capital 14.5% 15.2%
Irish Life & Permanent plc has announced the appointment of Kevin Murphy as Group Chief Executive.
Murphy [57] has worked with Irish Life – the Group’s life assurance business - since 1972. He was appointed to the Board of the Group in 1999 and since 2005 has been responsible for the operation of the Group’s life & pensions businesses [Irish Life Retail, Irish Life Corporate Business and Irish Life Investment Managers]. He served as Chief Executive of the Group’s fund management business [Irish Life Investment Managers] between 1993 and 2005. Since February of this year he has managed the day-to-day operation of the Group alongside Chairman Gillian Bowler pending the conclusion of this selection process.
Murphy is an actuary by profession. Earlier this week he was appointed as President of the Society of Actuaries of Ireland. He is also a Director of the Irish Stock Exchange. He is a former Chairman of the Irish Association of Investment Managers and a past President of the Irish Insurance Federation.
Ryanair today announced cuts in its winter based aircraft, flights and jobs at Dublin and Shannon Airports and blamed the €10 travel tax continues to"devastate Irish traffic and tourism."
In the first five months of 2009 traffic at Dublin Airport has fallen by 11%, a loss of 1 million passengers in just five months. If this traffic collapse continues for the full year it will mean the loss of 2.5 million passengers, 2,500 jobs at Dublin Airport and €750 million of tourism spend in the Irish economy in 2009.
There is also a severe recession, which is likely to have some impact on traffic.
Ryanair announced that it will cut its base aircraft by one at both Dublin (from 17 to 16) and Shannon (from 4 to 3) this winter, resulting in the loss of 350,000 passengers and 350 jobs at Dublin Airport and a further 300,000 passengers and 300 jobs in Shannon Airport.
Further cuts in winter flight and traffic numbers will be announced in the coming months if the Government fails to scrap this €10 tourist tax. Ryanair said will switch these aircraft and continue to grow in lower cost/no tourist tax countries such as Belgium, Holland, Greece and Spain where governments have recently scrapped tourist taxes and airport charges to promote tourism.
Ryanair confirmed that these winter cutbacks can be reversed if the Government scraps its €10 tourist tax.
Ryanair announced reductions as follows for the winter 2009 schedule:
- A 25% cut in Shannon based aircraft (4 to 3).
- A 6% cut in Dublin based aircraft (17 to 16).
- A cut of 36 flights per week at Shannon.
- A cut of 44 flights per week at Dublin.
- The loss of 650 airport and tourism jobs.
- The loss of €750 million in tourism spend.
Ryanair’s Michael O’Leary said: “The Irish Government’s €10 tourist tax is “tourism suicide” which is devastating visitor numbers and jobs. Price sensitive visitors are switching to lower cost destinations in Europe where governments welcome tourists, not tax them.
“Ryanair will remove one aircraft from both Dublin and Shannon this winter and further cuts can be expected in the coming months if the €10 tourist tax is not scrapped. If the tourist tax is scrapped these cuts, and the tourism collapse, will be reversed.
This tourist tax will raise just €125 million per annum and for this tiny tax revenue the Irish government will lose over 2,500 jobs and more than €750 million in tourism spend, the VAT receipts on which would exceed €150 million”
London AIM small companies market listed oil exploration company Petrel, today reported a jump in pre-tax losses for 2008 as it waits for the Iraqi government to pay what it owes it.
Petrel reported pre-tax losses were €761,637 for the year ending December compared to losses of €518,935 the previous year. Revenues also dropped to €8.23 million from €29.95 million in 2007.
The company said that it is seeking oil rights on its Subba and Luhais Iraqi joint venture project after the government's failure to honour an agreed payment schedule.
Since signing a $197 million contract in 2005 and receiving a $20 million advance from the Iraqi government, Petrel has completed about 50% of the project work. The work has been approved by the authorities but the $57 million owed to Petrel has not been paid.
Petrel put the Subba and Luhais project on care and maintenance last October and temporarily disbanded the technical team on site. It has proposed to the Iraqi government that Petrel take over operation of the field, complete the development and take payment in the form of oil.
The US Consumer Price Index increased 0.3 percent in May, the Bureau of Labor Statistics of the US Department of Labor reported today. Over the last 12 months the index has fallen 1.3 percent. This is the largest decline since April 1950 and is due mainly to a 27.3 percent decline in the energy index. In another report, the US current account deficit was reported to have fallen in the first quarter of 2009, to the lowest since 2001.
US Consumer Price Index fell in year to May to lowest since 1950; US current account deficit falls to lowest since 2001 - - down to 2.9% of GDP
In the US markets, the Dow is down for a third day so far - - but at just off 2 points.
The Nasdaq Composite Index was off 0.31 and the S&P 500 fell 0.11%,
Live US Indices
Eurostat, the EU statistics office, reported today that the Eurozone trade balance surplus expanded in April.
The Eurozone had a trade surplus of €2.7 billion in April, up from €1.8 billion in March and €2.2 billion in April in 2008, Eurostat said in a first estimate.
The March surplus, the first since June 2008, was revised up sharply from an initial estimate of only €400m.
Exports fell 27% in April to €102.1 billion while imports dropped 28% to €99.4 billion.
Meanwhile, the EU27 had a trade deficit of €7.8 billion in April, after a shortfall of €9.3 billion in March and €14.9 billion in April 2008.
In Europe, the pan-European Dow Jones Stoxx 600 is off 2%.
The FTSE 100 fell 1.22%.
In Dublin, the ISEQ is down 3.44%.
AIB is down 18%; BoI is off 14%.
European Benchmarks
Irish Share Prices
Euribor Rates
Oil
On the New York Mercantile Exchange, oil for July delivery is trading at $69.31 down $1.16 from Tuesday's close in New York. In London, Brent crude for July delivery is trading at $69.46 a barrel down 78 cents.
Oil futures accelerated their decline on Wednesday after the Energy Information Administration of the US Energy Department, reported a bigger-than-expected drop in crude supplies and a much larger-than-expected rise in gasoline stocks.
Currencies
The euro is trading at $1.3867 and at £0.8513.
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 15th.
