Business Irish

Friday 28 October 2016

What it says in the papers: business pages

Published 05/07/2016 | 06:50

The front page of this morning's Irish Independent business section
The front page of this morning's Irish Independent business section

Here are the business stories you need to know about this morning:

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Irish Independent

*The weakened Sterling will send shoppers across the border into Northern Ireland to avail of cheaper prices, the Department of Finance has admitted.

The value of the pound has fallen since the Brexit vote last month, making the North more attractive as a destination for shoppers.

The Department of Finance is now warning Vat receipts on sales will drop here as a result of less goods being bought in shops.

"We would expect, later on in the year, and again it depends on the strength of Sterling, that we will probably see some linkage across to Northern Ireland in terms of Vat, and people [will] go and shop there," John Palmer, Principal Officer at the Department of Finance, said.

*Investor sentiment in the Eurozone has hit an 18-month low in the wake of the Brexit vote, a gauge has revealed.

And as construction output in the UK experienced its weakest performance in seven years last month, the International Monetary Fund warned the UK's economy could be 4.5pc smaller than it otherwise would have been by 2019 because of the Brexit result.

The latest Frankfurt-based Sentix research group's index suggests investors are nervous about the potential for a major economic fallout from the Brexit vote.

The index fell to 1.7 from 9.9 in June.

*Entertainer Dylan Moran had a bumper year last year when accumulated profits at his entertainment firm almost doubled to £1.397m (€1.66m).

According to accounts just filed by Moran's Venus Lucia Productions Ltd to Companies House in the UK, the firm enjoyed profits of £654,461 last year to bring the company's accumulated profits to £1.39m.

During the same 14-month period to the end of September last, the firm's cash pile increased from £802,695 to £1.06m.

The comedian was able to add to his firm's coffers after a tour around the UK, Ireland, Australia and New Zealand last year.

The Irish Times

*Finance Minister Michael Noonan downplayed George Osborne's plans to slash the UK's corporation tax rate to below 15pc.

He said the move wasn't as dramatic as it might appear given Mr Osborne had previously said he would cut the rate to 17pc.

Mr Osborne's plan, if implemented, would intensify competition for foreign direct investment between Ireland and the UK.

*Ireland should consider having the two terminals at Dublin Airport compete, or build a new airport to compete with Dublin, according to a Government-commissioned report.

The report by consultants Indecon recommends an overhaul of airport charge regulation system overseen by the Commission for Aviation Regulation.

It says Dublin Airport has significant market power and calls for its charging regime to be strictly regulated.

*Standard Life stopped investors selling out of a commercial property fund after large cash outflows in the wake of the Brexit vote.

The fund has to sell real estate to raise cash before further redemptions.

Investors fear Brexit could trigger a fall in property prices.

Irish Examiner

*Ireland's economic growth could increase by 50pc and 140,000 jobs could be created over the next four years if this country plays a leading role in the creation of the planned EU single digital market, according to a report.

The Google-commissioned study says Ireland, the Benelux nations, Scandinavian countries and the Baltic States are European digital "front-runners".

But it warned Ireland must act quickly to copperfasten that status. The digital single market would see a harmonisation of digital regulation across the EU.

*Grocery sales grew 2.5pc in Ireland year-on-year in the 12 weeks to June 19, according to the latest figures.

SuperValu continues to lead in terms of market share, with Tesco in second, the Kantar Worldpanel figures show.

But Kantar's head of consumer insight Georgieann Harrington said the Brexit vote could increase cross-border shopping due to a fall in sterling.

*RBS boss Ross McEwan said the UK government's sale of its stake in the bank would be delayed at least two years by Brexit.

He said the vote would be "quite a setback", and that UK GDP growth would dip this year.

Mr McEwan said he welcomed George Osborne's plan to slash corporation tax.

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