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President Barack Obama talks with patrons as he waits for his lunch order during a stop at Skyline Chili in Cincinnati, Ohio, July 16, 2012.
Tuesday submitted a formal takeover for Aer Lingus with a €694m offer.
This morning the Aer Lingus board said:
"Ryanair's offer is not in the interests of shareholders or Aer Lingus and is
incapable of completion. Accordingly, the board of Aer Lingus unanimously
recommends shareholders should take no action in relation to the offer and
should not sign any document sent by Ryanair or its advisers."
It also noted that Ryanair's 2006
offer was prohibited by the European Commission on competition grounds, and
"your board believes that the reasons for prohibition are now even stronger than
before: the number of routes that Ryanair would monopolise has sharply
increased. Your board has received legal advice that the European Commission is
likely once more to prohibit the Ryanair offer, and that this is not therefore a
credible offer which is capable of completion.
In addition, the UK Competition
Commission is continuing to investigate the anti-competitive effects of
Ryanair's 29.82% stake in Aer Lingus, despite Ryanair's repeated and ongoing
attempts to stop both this investigation and the previous Office of Fair Trading
investigation. Your board has received legal advice that the UK Competition
Commission is likely to require Ryanair to sell down its current stake."
Ryanair is seeking acceptance of the bid by 13
earnings slid 4.4% from a year ago, but incoming CEO Marissa Mayer, a former
senior executive of Google, knows what she faces and on Tuesday the main media
focus was on her pregnancy and the baby boy due to be born in October.
For the second-quarter, the tech company earned
$226.6m, or 18 cents a share (27 cents, non-GAAP), on revenue of $1.22bn. A year
ago, the company earned $237m, or 18 cents a share (19 cents, non-GAAP), on
revenue of $1.23bn.
The company spent $456m buying back its stock,
reducing its outstanding shares from last quarter.
Economic View: Confirmation on senior debt burden-sharing discussion; Dermot
O'Leary, chief economist at Goodbody comments - -"What started off as an
unconfirmed report on Monday has now become an important
discussion point with Irish policymakers over the past two days. It was
confirmed yesterday by
Irish Taoiseach Enda Kenny that ECB President Mario Draghi did indeed raise the
burden sharing with senior bondholders at last week’s Ecofin meeting. He also
noted that that
there were differences of opinion on the issue and that it was still an on-going
This view was echoed by Finance Minister Michael Noonan after he met with Draghi
yesterday. As we noted over the past two days, burden-sharing with senior
bondholders is a
ship that has sailed in relation to the defunct Irish banks (IBRC).
attributed to the ECB in this morning’s Irish Times seem to confirm that Ireland
benefit in other ways, with Draghi expecting that “these developments will be
reflected in the
Irish adjustment programme”. Given that discussions will be on-going in relation
agreement reached at a political level on June 29, it is a positive that the ECB
seems to be in Ireland’s corner.
We will just have to wait to see how these discussions play out over the
but the diplomatic efforts are indeed moving in the right direction. Noonan is
continue these efforts with a meeting with Ajai Chopra of the IMF this morning
Rehn over the coming weeks."
Draghi comments on Ireland and senior bondholders upstage damp squib fiscal
stimulus plan: Conall Mac Coille, chief economist at Davy comments - - "Last
night, ECB President Mario Draghi indicated that the question of whether senior
bondholders should participate in burden-sharing in failing banks is evolving
through the ongoing discussions on an EU resolution directive to deal with
failing banks. Significantly for Ireland, the statement issued by the ECB also
indicated that President Draghi expects that these developments will be
reflected in the Irish adjustment programme. So it appears that the government
will have support from the ECB in negotiations to secure the best deal possible,
following the commitment at the July EU leaders meeting to help Ireland's debt
Furthermore, last night's comments substantiate the reports in the Wall
Street Journal that the ECB now supports burden-sharing for senior bondholders.
If so, it is clear that the ECB's former position has had detrimental
consequences for Ireland's debt sustainability. So the turnaround in ECB policy
could strengthen the government's hand further, perhaps in any effort to secure
fiscal transfers to compensate for redeeming unguaranteed senior bondholders in
Meanwhile, the Irish government yesterday launched a €2.25bn fiscal stimulus
plan. The spending announcements are small, equivalent to just 1.6% of GDP, and
spread out over several years. The plan relies heavily on private sector
investment through public-private partnerships (PPPs), perhaps up to €700m,
although bizarrely the precise funding of the plan remains unclear. This means
that the actual government outlay may be closer to just 1% of nominal GDP.
Billed as an 'off-balance-sheet' stimulus plan, the spending commitments will
have clear ramifications for Ireland's gross and net debt position. The €850m
funding from state asset sales could alternatively have been used to pay down
Ireland's gross debt, helping to reduce the annual interest bill. Similarly, the
decision to use up to €750m of the National Pension Reserve Fund's liquid assets
will push up on the government's net debt position, a metric closely watched by
ratings agents in assessing Ireland's creditworthiness.
Finally, far from 'shovel ready', many of the construction works will not
begin until 2013 at the very earliest. So the 13,000 jobs that the government
said will be created will only come with a substantial lag. Some of the
construction works are not scheduled to begin until 2015. And the capital
expenditure budget will be reviewed many times through this period in the
context of ongoing budgetary pressures. So in retrospect many of the plans
identified yesterday, may fail to be implemented fully, or merely displace other
expenditures. In summary, yesterday's announcements will have little impact on
Ireland's growth prospects."
In New York Tuesday, the
Dow rose 78 points or 0.62% to 12,806.
The S&P 500
and the Nasdaq advanced 0.45%.
The MSCI Asia
Pacific Index fell 0.6% Wednesday.
Nikkei 225 fell 0.32%; China's Shanghai Composite rose 0.37%; Korea's Kospi
index dipped 1.48%; Australia's S&P/ASX 200 lost 0.42% and in Mumbai, the
Bombay Stock Exchange's Sensex 30 Index climbed 0.45%.
skyscrapers and immaculate beaches of Singapore's seaport look out on one of the
world’s largest parking lots: mile after mile of empty cargo ships, as far as
the eye can see.
fleets bob at anchor, with empty cargo holds, off the coasts of southeast
Malaysia and Hong Kong. And dozens of newly built ships float empty near the
giant shipyards of South Korea and China, their owners from all over the world
reluctant to accept delivery during one of the worst markets ever for the global
recently as six weeks ago large freighters that can carry bulk commodities like
iron ore or grain were fetching charter rates of $15,000 a day. Now, brokers and
owners say, the going rate is $6,000 a day. If any customers can even be found.
between the US benchmark WTI (West Texas Intermediate) used on the New York
Mercantile Exchange and Brent is at $15 - - The Globe and Mail says that for the
past 10 months, Canadian producers - - whose prices are tied to WTI - - have
been taking steep discounts for their oil compared with international crude
prices that are benchmarked against North Sea Brent, which can be shipped more
readily. In the past, WTI tended to trade at a small premium to Brent, because
it is easier to refine.
hit a peak of $28.08 (US) on Oct. 14, but has fallen dramatically since then.
After plans for more pipeline capacity at Cushing, Oklahoma, the differential