Business Irish

Tuesday 12 December 2017

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

*Shares, private pension funds and oil prices took a battering amid concerns over the slowing Chinese economy, on what became known as 'Black Monday' on the stock markets.

Markets from Shanghai to Paris and New York all slumped in what commentators quickly dubbed 'The Great Fall of China'.

The volatility centres on fears that the world's second biggest economy is slowing.

*The Central Bank and Financial Regulator had 'minimal' contact with AIB over its lending policy in 2007, and it was not until late 2008 that they began to get heavily involved in the bank's loan book, according to AIB's former chief credit officer.

Kieran Bennett told the Banking Inquiry that, to his knowledge, there may not have been any loan portfolio reviews conducted by the Banking Supervision team in the Financial Regulator or Central Bank during 2007 and up until late 2008.

*Motor insurance premiums at leading insurer FBD are set to rise by 10pc over the next couple of months. Drivers are already reeling from some of the highest hikes in motor cover in a decade.

Asked about motor premiums acting FBD chief executive Fiona Muldoon said: "Overall, over the next 10 months, we would be looking to do 10pc or so. In the next six months it will be modest enough across the board."

The Irish Times

*'Less onerous' options than the bank guarantee sghould have been considered by the then GOvernment on the night the guarantee was made, according to a former Bank of Ireland director.

David Dilger said that Bank of Ireland entirely solvent in 2008 and didn't need a guarantee in normal circumstances, but that the contagion effect of one or two banks failing could have had disastrous consequences for the Irish banking system as a whole.

However, he added that with the benefit of hindsight it seemed clear that other options should have been considered.

*Aer Arann founder Padraig O'Ceidigh plans to expand a Westmeath nursing home he owns with €4m from Ulster Bank.

The home has planning permission for another 26 bedrooms, with the expansion set to create 30 jobs.

O'Ceidigh also owns Casla, a home-care service for older people.

*Medical device company Mainstay Medical has secured a debt facility of up to $15m.

The company said the facility would allow it to build momentum towards commercialising an implant designed to treat chronic back pain.

The facility is being provided by healthcare-focused finance provider IPF Partners.

Irish Examiner

*Merging Cork city and county councils would be hugely damaging to the city's future, according to two leading developers.

Owen O'Callaghan and John Cleary warned that the move would cost jobs and investment. The men issued a joint statement saying foreign direct investors need to see that the city operates independently as a clear entity.

The Cork Local Government Review Group is reviewing the case for a merger and is set to report to Government next month.

*Legislation targeting developers who 'hoard' land is due to go before the Cabinet in weeks.

Environment Minister Alan Kelly told RTE radio that holding up development land is unacceptable during a homelessness crisis.

*Shares in Dublin-based explorer San Leon Energy had jumped more than 12pc at one stage yesterday after the company confirmed it had received a potential takeover offer.

The company, run by former Smart Telecom chief executive Oisin Fanning, is mainly focused on Poland.

It said there can be no certainty that a firm offer will be made.

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