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.
Finfacts is Ireland's leading business information site and
you are in its business news section.
President Barack Obama greets Hugh Hills, 85, in front of his home in Joplin, Missouri, May 29, 2011. Hills hid in a closet during the tornado when the president was in Europe, and it destroyed the second floor and half the first floor of the house.
France: France's National
Institute of Statistics and Economic Studies (Institut National de
la Statistique et des Études Économiques: INSEE)
reported today that in April, households’ expenditure in goods
fell by 1.8% in volume terms, after having declined by –1.0% in
March. INSEE says this dip is mainly imputable to a sharp decrease
of durables - - cars in particular, and also to a decrease in energy
expenditure. Food products’ consumption increased.
Irish sovereign funded to 2013: Davy economist, Conall Mac
Coille, comments - -"It is becoming something of a habit
for finance minister Michael Noonan to have to clarify government
fiscal policy on a Monday morning as the weekend seems to provide an
opportunity for his cabinet colleagues to muddy the waters. Just as
well then that speculation that the Irish sovereign may not be able
to re-enter international bond markets in 2012 misses the key point
that the current EU/IMF plan provides funding out to 2013.
That the sovereign is funded through 2012 became apparent in
the April stability programme update by the EU, IMF and Department
of Finance, when it was announced that the unused €7.5bn (of their
overall €17.5 contribution) provided by the EU/IMF to meet the PCAR/PLAR
capital and liquidity requirements, could now be used for sovereign
funding needs. The latest EU Commission update on Ireland's economic
adjustment programme shows that Ireland requires €14bn of market
funding in 2013, but these funding needs could be largely met by
eroding the €16.2bn (at end-2010) of cash balances available to the
So, the Irish sovereign is funded up to the point where the
European Stability Mechanism (ESM) is due to replace the current
funding arrangements from the European Financial Stability Fund
(EFSF). As we argued in our research report issued on May 27th
('Irish economy and bond market — a medium-term path to debt
sustainability'), key elements of the ESM funding arrangements
indicate that it will be difficult for those countries that draw on
ESM funding to re-engage with private markets. Indeed, the IMF has
recently criticised the shortcomings of the proposed ESM framework.
Nonetheless, it is crucial that the EU have a funding programme
available for sovereigns within the Eurozone that face liquidity
problems. Hence, policymakers should focus on ensuring that support
is on the right terms to allow re-engagement with private markets."
Economic View; Further austerity on the
way in Greece: Goodbody chief economist, Dermot
O’Leary, comments - - "Under intense pressure
from the Troika, but with the background of mass protests in the streets of its
capital, it appears that Greece is edging towards accepting further austerity
measures in a bid to secure its next tranche of financing from the IMF/EU. It is
reported this morning that Greece will agree to a medium-term fiscal plan that
includes cuts in benefits to civil servants, an extension to a public-sector pay
freeze from two to five years, a much-curtailed limit on new hiring (one for
every ten that leaves) and a strict limit on its capital expenditure programme.
The sticking block continues to be the
privatisation programme, particularly whether there will be an external
representative on the board of the entity that will be set up to manage the
sales process. It is reported that negotiations are to be wrapped up by tomorrow
night. The Troika will then complete their mission by the weekend, with their
report due next week. An emergency euro-zone meeting will be held on either 6
June or 13 June, while Juncker stated last night that it plans to decide its
next move on Greece by the end of June.
The key issue for markets over the next four weeks is, of course, whether
euro-zone policy makers will go down the road of debt restructuring/reprofiling
at the same time as it agrees on a further package of support for Greece. With
Greece between a rock and a hard place, it has little choice but to cede to the
demands of its lenders and bow to its judgement.
Ireland learned this lesson at the end of 2010. Once a country becomes reliant
on external official financiers to fund its deficits and repayments, that
country has little say over systemic issues such as debt restructuring."
India Economy: Reform at the Crossroads: PK Basu, Chief Economist, Asia ex-Japan at Daiwa Institute of Research is conditionally constructive about the Indian economy as he is still concerned about the RBI being behind the curve:
Irish Airlines: Moving in the right
direction, but a long term game; Goodbody's Eamonn
Hughes comments - - "The European Commission yesterday
released a press release in which it indicated that an additional 28m passengers
could travel in the region’s airports by 2025 if they made more efficient use of
landing and takeoff slots.
The report indicated that sub-optimal use of
capacity at airports, inadequate slot co-ordination, lack of consistency with
the Single European Sky and barriers to entry of operations were all hampering
progress at a range of congested airports, highlighting that demand exceeded
capacity for most or all of the day at Heathrow, Gatwick, Paris Orly, Milan
Linate, Dusseldorf and Frankfurt. The relevant commissioner, Slim Kallas,
indicated that he intends to bring forward legislation to tackle this issue in
the autumn, a noble target.
To put it into context, 750m people used EU airports in 2009, so the potential
here is shy of a 4% increase in passenger capacity. It’s meaningful, but over
such an extended period will be modestly felt. Should airports get it right, it
implies more through-put for less capex. For the airlines, it probably provides
for additional capacity (modestly each year) at slot constrained airports, and
we anticipate some benefits for the main flag carriers and the likes of easyJet,
who are heavy users at slot constrained airports."
China's Power Crisis: Chi
Lo, CEO of HFT Investment Management believes that the power crisis in
China leads to risks such as inflation and higher energy
were closed Monday for Memorial Day - - a day in honour of America's war dead.
MSCI Asia Pacific Index rose 1.0% Tuesday.
Nikkei 225 added 1.99%; China's Shanghai Composite index advanced 1.37%;
Australia's S&P/ASX 200 gained 0.87% and the Bombay Stock Exchange's Sensex
index climbed 1.32% in Mumbai.
Indian growth in the
Q1 2011 slowed to 7.8% from a year earlier, the national statistics office
reported today. In the fiscal year to March 2011, GDP increased by 8.5%, India's
Central Statistical Organisation reported.
The Reserve Bank of India raised interest rates 9 times in the past 15 months to
curb inflation which is currently at an annual rate at 8.6%.
closed at 3,005 on Thursday, Dec 31st - - a rise of 289% in 2009. The index
averaged 59% lower in 2009 than a year earlier.
Thursday, July 15, 2010, the index fell for the 35th straight session, by 9
points, or 0.537%, to 1,700 points,
On Friday July16th, the BDI rose 20
points or 1.12% to 1,700 to break the 35-session losing streak.
Friday last week, the BDI climbed 7 points or 0.48% to 1,474 - - The Baltic Exchange was closed in London on Monday.
The Financial Times reported
earlier in January, that Australia’s flooding and fears of ship oversupply has
pushed down a gauge of the cost of hiring ships to carry coal, iron ore and
other dry bulk by nearly half since October to the lowest level since the
aftermath of the financial crisis. The Baltic Dry index, the widely watched
measure of dry bulk charter rates, fell to 1,453, nearly half the 2,784 peak
reached on October 27, 2010.
margin between the US benchmark WTI (West Texas Intermediate) used on the New
York Mercantile Exchange and Brent is almost $14.
said in early February that a surge in oil inventories in Cushing, Oklahoma,
where WTI is delivered into America’s pipeline system, has depressed the value
of the benchmark against other yardsticks. "The
International Energy Agency said on Thursday that with 'few relief valves' to
cut the stock overhang in Cushing, the price dislocation “may persist for months
[or years] to come”.