See Search Box
lower down this column for searches of Finfacts news pages. Where there may be
the odd special character missing from an older page, it's a problem that
developed when Interactive Tools upgraded to a new content management system.
Welcome
Finfacts is Ireland's leading business information site and
you are in its business news section.
We
provide access to live business television and business
related videos from: Bloomberg TV; The Wall Street Journal;
CNBC and the Financial Times. Click image:
Markets News Afternoon: INM signs deal with bondholders; Germany’s manufacturing orders up in August; Aer Lingus rises 12%
By Finfacts Team
Oct 7, 2009 - 5:14:54 PM
The New York Stock Exchange - - the third quarter earnings season begins Wednesday, after the closing bell.
INM
Independent News & Media Plc announced that it has today entered into a formal agreement with the members of the Ad Hoc Committee of Bondholders with respect to the implementation of the restructuring, as announced on 28th September, 2009.
Bondholders are overdue payment of €200 million since last May and have agreed an equity swap.
INM says in the circular to shareholders dated 5th October, 2009 in connection with the convening of an extraordinary general meeting requisitioned by Denis O'Brien, that the company noted that the resolution proposed by O'Brien would, if approved, have the effect of revoking the authority of the board to issue shares. However, it was noted that under the share issue authority granted at the company's annual general meeting in 2009 (and based on legal advice received by the board to this effect) the directors may, notwithstanding revocation, issue shares pursuant to any offer or agreement made by the company before revocation.
German manufacturing orders
Germany’s manufacturing orders in August rose a robust 1.4% in the month signalling a strong recovery in the industrial sector.
The economics ministry in Berlin, revised down July’s figures to show a monthly increase of 3.1% compared with the 3.5% originally reported. However, it added that August had seen fewer than normal large orders. That suggested the latest figures might have understated the underlying trend. The latest rise was driven largely by orders from outside the Eurozone.
Earlier in the week, insurance giant Allianz forecast that Germany would grow by 2.7% in 2010 compared with the boom year of 2006 when the economy grew by 3.2%.
UK company profitability in Q2 2009
The Office for National Statistics said today that the net rate of return by private UK non-financial corporations in the second quarter of 2009 was 11.6%. This compares with the revised estimate of 12.0% in the previous quarter. The annual net rate of return in 2008 was 14.1%. This compares with the estimate of 14.2% for 2007.
Figures for the latest quarter show that;
Manufacturing companies’ net rate of return was 6.7% - - recovering from a 17-year low of 7% in Q1 2009.
Service companies’ net rate of return was 15.6%.
The net rate of return of companies other than United Kingdom Continental Shelf (UKCS) companies was 10.8%.
The net rate of return of UKCS companies was 33.6% i.e. oil/gas exploration firms.
US mortgages
The US Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 02, 2009. The Market Composite Index, a measure of mortgage loan application volume, increased 16.4% on a seasonally adjusted basis from one week earlier.
The Refinance Index increased 18.2% from the previous week, following the third consecutive week where the 30-year fixed mortgage rate was below 5%, and is at its highest level since mid-May. The seasonally adjusted Purchase Index increased 13.2% from one week earlier, which puts the index at its highest level since January. The unadjusted Purchase Index increased 12.9% compared with the previous week and was 2.2% lower than the same period one year ago.
The four week moving average for the seasonally adjusted Market Index is up 4.2%. The four week moving average is up 0.2% for the seasonally adjusted Purchase Index, while this average is up 6.7% for the Refinance Index.
The refinance share of mortgage activity increased to 66.3% of total applications from 65.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1% from 6.2% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.89% from 4.94%, with points increasing to 1.13 from 0.94 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This rate is at its lowest level since May 2009 when it was 4.81%.
Congressmen on both sides of the aisle discuss health care reform and more with CNBC:
Job losses at Shannon
50 jobs are to be cut at the GE Money company based at Shannon as a result of a company restructuring, while another 80 will be lost at Finnish company Tecnotree.
GE Money said another 15 jobs will be cut in Dublin.
A unit of GE Capital, the finance division of the US conglomerate General Electric, the Irish operation handles financial products including insurance, mortgages, car and personal loans, financial brokerage and equipment finance leasing.
178 people are employed in the Shannon Free Zone, and staff have been told that a number of jobs will be affected by a decision to restructure its business.
GE Money says the restructuring announcement will have no impact on existing mortgages, personal loans, care finance agreements and insurance policies held in Ireland.
Tecnotree announces 80 layoffs
Finnish company Tecnotree, formerly Tecnoman, which is also based at Shannon, said that it is seeking 80 redundancies from its staff of 141.
In a statement to the Finnish stock exchange, it says it is seeking to cut its Irish workforce due to the current economic conditions and a reduction in demand for its products and services.
The company is involved in telecommunications and is one of the global leaders in the supply of business and operations support systems for telecom operators.
A spokesman for the company in Shannon said that while the redundancies sought were significant, it did not mean the company was closing down. He said the firm planned to stay in Shannon, but with a reduced workforce.
Treasury Secretary Geithner said Americans should be saving more. The CNBC news team discusses whether this is the best option:
The Nasdaq is off 0.08% and the S&P 500 has dipped o.18%.
Aluminum giant will kick off Alcoa the third-quarter earnings season after the closing bell.
Analysts are forecasting that companies in the S&P 500 will report a 25% decline in profits, compared with the second quarter's 27% decline, according to Thomson Reuters.
Small businesses create more than half of US GDP but many say they're still having trouble getting loans and the government stimulus isn't trickling down to them. Sen. Amy Klobuchar, D-Minn., discusses the issue:
In Europe, the Dow Jones Stoxx 600 fell 0.16% Wednesday.
Most of the 18 Western European markets fell after rising more than 2% on Tuesday.
In Dublin, the ISEQ is up 0.70%.
Aer Lingus is up 12% after announcing a restructuring plan this morning.
On the New York Mercantile Exchange, oil for November delivery is trading at $70.76 down 12 cents from Tuesday's close. In London, Brent crude for November delivery is trading at $69.46 a barrel.
Currencies
The euro is trading at $1.4674 and at £0.9226.
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.
