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Irish Debt Crisis: The Taoiseach said today that there is no reason for any Irish person to feel ashamed or
humiliated about the Irish debt crisis.
Brian Cowen insisted in an interview with Newstalk106 that the Government is still looking at the best options for
Ireland and Europe.
He says a “contingency fund” is under examination but insisted the Government
will make a sovereign decision when the time comes on any bailout and its size.
The Taoiseach said this is an issue bigger than just Ireland.
The Governor of the Central Bank, Patrick Honohan, also said he expects that talks with representatives of the International Monetary
Fund, the European Central Bank and the European Commission,
which began in Dublin today, will result in a loan being
offered to Ireland.
Professor Honohan said the negotiations were not about a
bailout, but would lead to a loan of tens of billions to
Ireland, and that the Government would have to accept it.
Whatever about the semantics, it's going to be called a bailout with Budget details and reform dictated by the European Commission and International Monetary Fund.
"The intention is and the expectation is, on their part
and personally on my part, that negotiations or discussions
will be effective and a loan will be made available and
drawn down as necessary," Pror Honohan said.
Meanwhile, German Chancellor Angela Merkel today restated
her determination that private investors should contribute
to the costs of a future Eurozone bailout but stressed that
this applied to future rescues only from 2013.
"We in the federal government are absolutely convinced
it is necessary that creditors contribute to the cost in any
future, and I underline 'future' three times so that the
markets understand - mechanism," said Merkel.
On Ireland, Merkel said: "We have a European support
mechanism and if a country believes it needs to use it,
that's what it is there for."
An international task force is in Dublin Thursday to begin negotiations over Ireland's debt problems. David Kuo, director of The Motley Fool, and Alan Clarke, UK economist at BNP Paribas, consider the outlook:
IFSC: A study on Dublin's offshore financial centre
says it accounts for about 7.4% of GDP (gross domestic
product) and represents almost 5% of EU cross-border
The study for Financial Services
Ireland , an IBEC group which represents financial services
firms, was carried out by consultants Accenture.
It found that the international financial services sector
employs 32,700 people in over 500 firms with a payroll of
€1.97bn. The sector contributes €2.1bn in tax every year,
including 36% of the total corporation tax rate.
An IFSC company is any company which is based in Ireland,
whether foreign owned or indigenous, which is mainly
involved in financial services exports. Although most are
based in Dublin, since the introduction of the 12.5% tax
rate, companies now have a presence in 20 counties.
The report says high-end, knowledge economy jobs have an
average salary estimated at over €60,000 a year.
The situation in Ireland isn't the same as the situation in Greece because the cause is different, Charles Campbell, senior sales trader at Miller Tabak, told CNBC Thursday:
US Initial Weekly Jobless Claims: In the week ending Nov. 13th,
seasonally adjusted initial benefit claims were 439,000, an increase of 2,000
from the previous week's revised figure of 437,000. The 4-week moving average
was 443,000, a decrease of 4,000 from the previous week's revised average of
447,000 to its lowest level since Sept. 6, 2008.
The advance number for seasonally adjusted insured unemployment during the week
ending Nov. 6 was 4,295,000, a dip of 48,000 from the preceding week's revised
level of 4,343,000. The 4-week moving average was 4,353,250, a decrease of
45,500 from the preceding week's revised average of 4,398,750.
Jobless benefits for roughly 2 million Americans are set to expire in about two
GM: General Motors was restructured after a bankruptcy in 2009 and almost a
century on the New York Stock Exchange, rose over 9% Thursday on its first public trading following a $20bn initial public offering.
GM rose 7.5% to $35.46 at 10:08 a.m., after rising as high as $35.99.
The carmaker’s owners, including the US Treasury, sold $15.8bn of
common shares at $33 each yesterday in the second-largest US IPO on record.
York Thursday, the Dow rose 177 points or 1.61% to 11,185.
500 rose 1.76% and the Nasdaq added 1.88%.
The Conference Board US Leading
Economic Index (LEI) for the US increased 0.5% in October to 111.3 (2004=100),
following a 0.5% increase in September, and a 0.1% increase in August.