Large fall Irish in jobless rate may stall, experts warn
Unemployment may slip below 8% just ahead of the next general election, but the dramatic improvement is likely to stall because the huge numbers on Government activation programmes will likely keep the jobless rate at an elevated level, experts have warned.
The warning comes after the CSO published figures that showed Ireland was creating jobs at a faster pace than any other developed economy in the world.
The figures show …
Mortgage moves contradict Irish Central Bank policy
Government intervention on standard variable-rate mortgages is a middle-class plea bargain that contradicts Central Bank policy on curtailing credit, a leading analyst has claimed.
Lowering standard variable rates will inevitably add further credit to the system by reducing the stress tests with which banks must comply, thus opening lending up to a larger proportion of the population, according to Karl Deeter of Irish Mortgage Brokers.
This would have the opposite …
Total Produce raises guidance
Total Produce has increased its full-year earnings guidance on the back of a good start to the year.
The Dublin-based international fruit distributor yesterday said it is now aiming for full-year adjusted earnings per share around the upper half of its previously announced range of between 9.20c-10.20c. Previously, management had guided for earnings of between 9.70c and 9.95c per share for this year.
“The increase of around 2.5% is due …
Central Bank rules ‘will stem bubble’
The number of mortgage loans drawn down by home buyers has rebounded to their highest level for seven years, but new Central Bank restrictions on lending will likely stem any new credit-fuelled house price boom, analysts predict.
New figures from industry body the Banking and Payments Federation confirmed that first-time buyers, and not investors, are now driving demand in the housing market.
The number of new loans drawn by home …
British EU exit wouldn’t ‘make a difference’
One of the titans of British industry has dismissed fears over the UK’s possible EU exit with its chief executive describing claims of potential jobs losses as scaremongering.
JCB chief Graeme MacDonald said a British exit would not make “one blind bit of difference to trade with Europe” given the importance of the UK market.
Mr MacDonald said the level of bureaucracy associated with doing business in European markets is …
Slowdown in US economy puts pressure on dollar
The marked strengthening of the dollar, evident over the second half of 2014, continued in the early part of 2015, writes Oliver Mangan.
The US currency gained around 13% against the euro and 6.5% versus sterling between the end of 2014 and mid-March, with the euro falling from $1.21 to $1.05.
Since then though, the dollar has come under pressure and, over the past month, has surrendered some of the …
Permanent TSB raises unsecured debt for first time in eight years
Permanent TSB said today it had raised €300m of debt by way of a three year Senior Unsecured Medium Term Note.
This is the first time in eight years that the bank has raised unsecured debt on the market.
Permanent TSB’s Group Treasurer Paul Byrne said the move was “another very positive step in the group’s re-engagement with the markets, having been away from the unsecured market for over eight …
Lack of finance ‘hitting construction’
Overwhelming positivity over the future of the construction industry is being tempered by a severe lack of finance with almost two-thirds of industry leaders citing it as the biggest impediment to growth.
More than 60% of construction sector business leaders identified securing finance for projects as the biggest challenge they face in attempting to develop their business against the improving economic back-drop.
The funding shortage has forced many construction companies …
ECB ‘content’ with bond scheme
The European Central Bank is satisfied with the effects of its bond-buying programme on the economy and inflation and has no intention of ending it prematurely, ECB executive board member Yves Mersch has said.
In March, the ECB started buying €60bn worth of eurozone government bonds a month to inject more cash into the economy and reverse a trend of falling prices.
“We have stopped the negative bank lending rates …
Paye income tax refunds to encourage business start-ups
The Government says its scheme to help entrepreneurs recover up to 41% of their start-up costs by way of refunds on previous income tax bills will encourage many more people to set up in business and create jobs.
The new scheme, which is called Sure —StartUp Refunds for Entrepreneurs — will help people who were in Paye employment to start their own companies by making it easier to raise the …