Wednesday 17 July 2019

What it says in the papers: business pages

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

Gavin McLoughlin

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

Irish Independent

*Bertie Ahern told the Banking Inquiry that that economy was fundamentally sound when he stood down as Taoiseach six months before the recession and banking crisis.

His testimony came as the European Commission said the bank guarantee was too generous and that the Government didn't understand the nature of the banking collapse.

This meant a financial crisis became a sovereign debt crisis, the Commission said. However, it said not burning bondholders was the correct decision.

*Aer Lingus executives including former boss Christoph Mueller will split up to €15.6m from the sale of bonus shares after the €1.36bn sale of the airline to IAG.

Aer Lingus shareholders yesterday voted in favour of key resolutions that pave the way for the deal to go ahead.

IAG has also extended its period of acceptance for the offer to the end of the month.

*Irish biotech company Malin has nearly finished its initial investment round after raising €42m in a share placing and investing €73m into UK biotech firm Immunocore.

Chief executive Adrian Howd told the Irish Independent that the firm, which was initially targeting 12 investments, has now made 11 and expects to have a full investment portfolio by the end of the year.

He said the company was well funded and won't look to raise more capital in the near future.

The Irish Times

*The Government rejected trade union demands to limit tax cuts in favour of spending more on services.

A series of Government figures said there would be no change to plans for a 50:50 split between tax cuts and spending increases in the next budget.

Finance Minister Michael Noonan said a 50:50 split was "fair".

*Cerberus, the successful bidder for Nama's Northern Ireland portfolio Project Eagle, defended its treatment of borrowers amid a series of legal challenges from Project Eagle borrowers.

Developer John Miskelly, who tried to put a consortium together to buy Liverpool Football Club, is among those taking a lawsuit against the company.

Cerberus said it treats every borrower "fairly and consistently". It said most disputes are resolved consensually, and that this is always the preferred route.

*Ireland ranked 11th out of 55 in the latest edition of a survey that ranks countries by their reputation.

This country ranked ahead of Britain, Italy, Germany and the US.

The study polled 48,000 consumers across the G8.

Irish Examiner

*Eurozone countries said they were willing to begin talks on a new Greek bailout after Athens approved a series of tax hikes and economic reforms.

The country's European creditors approved €7bn in bridging finance to keep the country afloat until a new deal is agreed, and the ECB agreed to increase the amount of emergency funding available to Greek banks.

*Ryanair boss Michael O'Leary defended himself against claims that the airline treats its staff unfairly.

Speaking to MEPs from the transport and employment committees of the European Parliament in Brussels, Mr O'Leary said Ryanair was creating up to 1,000 jobs a year when other airlines are cutting jobs.

He addressed a claim that the airline forces staff to buy their own uniforms by saying Ryanair gives cabin crew €400m a year for uniforms.

Financial Times

*The Bank of England (BoE) could hike UK interest rates at the turn of the year, BoE governor Mark Carney said.

Mr Carney said any increase in borrowing costs would be gradual and would stop at a lower level than in the past.

The BoE is the second major central bank moving towards a first rate hike since the crash. US Federal Reserve boss Janet Yellen has told Congress that the Fed is on course to lift rates before the end of the year.

*Telecoms giant BT could be broken up after a review of the UK communications market is completed by telecoms watchdog Ofcom.

Ofcom is examining whether current regulations need to be changed to increase competition and improve infrastructure.

It signalled BT's future would be a major focus.

Online Editors

Also in Business