Wednesday 26 October 2016

What it says in the papers: business pages

Published 08/01/2016 | 06:55

Here are the main business stories from this morning's papers:

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Irish Independent

* The mortgage war is heating up again as Permanent TSB becomes the second bank to pay a cash lump sum to those who take out a home loan.

The move will match Bank of Ireland's popular offer of 2pc cashback on the value of the mortgage, the Irish Independent has learned.

Bank of Ireland has been hoovering up market share with its cashback offer, which pays €2,000 for every €100,000 borrowed.

* The value of hotel sales in Ireland topped a record €1bn last year with the major sales of Bewley's, Jurys Inn and Adare Manor swelling the new high.

The record-high is according to new research from property consultants Savills, which says that growth in overseas visitors and other factors helped sales.

Savills notes that demand for hotel assets was strong in 2015 due to a 14pc growth in overseas visitors, Dublin hotel revenue per available room (RevPar) growth of 20pc and the strong positions of the dollar and sterling. The firm also says that a 7pc bump in Ireland's GDP also contributed to the demand.

* Rattled investors piled into Irish bonds, now seen as being as safe as French government debt, yesterday after the crisis in China wiped as much as $2.5 trillion off the value of shares, oil and other financial assets in less than a week.

The National Treasury Management Agency (NTMA) borrowed €3bn for 10 years at a price that translates into an annual interest rate of 1.156pc yesterday in the State's first bond deal of the year.

Investors, 88pc of them based abroad, offered to lend as much as €9.6bn to the State at yesterday's so called syndicated bond deal but the NTMA left the bulk of cash on the table.

The Irish Times

* Concerns over the Chinese market took some €2.4bn off  the value of Irish shares yesterday after trading in China was forced to stop for the second time in a week.

Stocks fell across Europe with in excess of £30bn being wiped from the value of shares on the FTSE 100 index in London.

Shares have felt the pinch after uncertain trading in China leaves many believing that its growth is slowing more than previously forecasted.

* The National Treasury Asset Management Agency (NTMA) has raised some €3bn in a 10-year bond at a rate of just over 1.5pc.

The bond attracted a lot of investors with interest in investing adding up to some €9.6bn with the majority coming from overseas investors.

Director of funding and debt management at NTMA, Frank O'Connor, said that the bond represented a strong start to 2016 as it representing half of its minimum target of issuance for the year.

* Monaghan-based mineral water company is to enter the US market as it aims to open a bottling facility that it intends to build in 2017.

The firm will put a plan in place to raise some €5m in order to build the facility.

Celtic Pure, which is headed up by Padraig McEnaney, has grown at a rapid rate in recent years an targets some €10m in sales by the end of this year.

Irish Examiner

* Insurance firm, Irish Life, has said that if the next government doesn't address pension policy, it would see the percentage of adults who are financially ready for retirement drop to below 50pc.

According to new research conducted by Behaviour and Attitudes with management consultancy firm McKinsey, Ireland could see a fall of in excess of 20 percentage points.

The research also says that the worry of not having enough money to retire is now a bigger concern than debt obilgations.

* Operating profits at Parknasilla Resort in Kerry grew four times over in the last year after a revamp, leaving it with a final figure of €452,543.

Accounts for Silork also show that gross profits at the firm also rose by some 19pc up to €4.25m up from €3.56m.

Despite this, big losses caused by the differing strengths of currencies as well as high interest payments saw the firm make a pre-tax loss of €1.57m.

* Irish banks have started collecting data on non-resident account holders as part of a worldwide crackdown on tax evasion  and banking secrecy.

The data collection is being made following agreements brokered by the Organisation for Economic Co-Operation Development (OECD) after pressures began to mount about the way in which companies were using tax havens.

The information being collected, which began being so from January 1 involved both individuals and companies as well as other entities.

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