In brief: Aer Lingus 'set for big boost to profits'
AER Lingus is likely to generate almost double the previously anticipated level of operating profits this year and in 2012 as its margin and mix of business improves, according to Merrion Capital. Analyst Gerard Moore yesterday significantly upgraded his forecasts for the airline following the release this week of its interim results. He said that this year Aer Lingus should generate an operating profit of €32.6m, implying a margin of about 2.5pc. That compares to his previous estimate of €17.5m.
US Treasuries rise on poor jobs figures
TREASURIES rose, pushing 10-year note yields below 2pc as the US Federal Government's payrolls report showed no jobs were added in August. Thirty-year yields fell to the lowest since January 2009 as employment data were the weakest since September 2010.
Banks to be sued over mortgages
THE US regulator plans to sue major banks in the coming days over subprime mortgage bonds, two sources said, in a lawsuit that may hamper a broader government mortgage settlement with banks. Word of the lawsuits by the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, came as a surprise to the market and weighed on bank shares. The lawsuits could add billions of dollars to the banks' potential legal costs.
GM crop fails to kill off corn parasites
MONSANTO Co's insect-killing corn is falling over in northwestern Illinois fields, a sign that rootworms outside of Iowa may have developed resistance to the genetically modified crop, according to one scientist. Michael Gray, an agricultural entomologist at the University of Illinois in Urbana, said he had studied whether western corn rootworms were resistant to a natural insecticide engineered into Monsanto corn.
Investors anticipate stimulus by the Fed
THE dollar is likely to trend lower in the week ahead after another abysmal US jobs report, which investors perceive as raising the likelihood of further action by the Federal Reserve to aid the economy.