Tuesday 12 November 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

*Former Anglo Irish Bank chief executive David Drumm has spent his second night behind bars as he awaits an extradition hearing.

Mr Drumm is being held in a detention centre near Brookline, Massachusetts, until he appears in court tomorrow morning.

Mr Drumm left Ireland for the US in 2009 as Anglo Irish Bank was collapsing and has remained there since, resisting efforts to have him returned here. He originally resided at a $5m estate in Cape Cod before moving to a $2m home elsewhere in Massachusetts.

In January of this year, it is believed an extradition file which outlined the charges the former banker would face if he returned home was sent through diplomatic channels to US authorities.

*Nama chairman Frank Daly has said that he "does not understand the view" that those to whom Nama sells properties should not make a profit on future sales.

Speaking at the International Corporate Restructuring Summit in Dublin last week, Mr Daly said that it is the view "of a small [number] of people" that Nama should "hold onto everything forever because you can never be sure that you will never get the actual maximum value [of the property]".

"You'll get a lot of this comment about Nama selling this property in 2010, 2011, etc, and now someone is turning a profit on it, but if you look behind it they are referring to about five or six individual properties, they forget about the rest of the 40,000 assets that were sold."

*Growth in Ireland's construction industry activity slowed down during September, although the sector did continue to expand.

The Ulster Bank Construction Purchasing Managers' Index, a seasonally adjusted index designed to track changes in total construction activity, dropped from 56.5 in August to 55.8 in September.

This was the lowest reading since March. However, the reading was still well above the 50-point mark that indicates growth and pointed to an increase in construction activity during the month. Output has now risen in each of the past 25 months.

Irish Examiner

*Tomorrow's Budget will be among the most generous pre-Election Budgets ever. Tax cuts and spending increases will come to €3bn - twice what the Government had previously signalled.

The newly published Department of Finance White Paper on Estimates of Receipts and Expenditure detailed additional expenditure of €1.5bn across areas like health, transport and education.

However, Taoiseach Enda Kenny said he was not planning a "spend, spend, spend" package that could put the economic recovery at risk.

*RTE management is shortly due to decide whether to sell some or all of its campus in Montrose.

A soon-to-be published strategy document covering 2015-2019 says the decision will be taken early in the period the document covers.

RTE has been examining ways of raising money after seeing its revenue fall significantly since the crash.

*Beef farmers are committed to the sector despite dairy being made more attractive by the abolition of milk quotas, according to a survey by AIB.

Around 70pc of beef farmers have identified growth opportunities over the next three to five years, the survey reports.

Factory prices in the sector have recovered during the year, it also says.

The Irish Times

*The iconic Bewley's cafe on Grafton St will reopen in February or March -  around six months later than originally planned - after restoration work is completed.

Chief executive John Cahill said the delay was due to the sensitive nature of the work and a decision to broaden the work's scope.

The cafe was closed in February as it sought to focus on its ground-floor offering and reduce losses.

*Ireland will be €20bn richer by the end of 2015, according to Ibec.

The employers’ group will today publish a report predicting economic growth will tip 5.9pc.

It will say that the economy will have expanded by €20bn in value terms by the end of the year, with the Government is likely to collect €2bn more in taxes in 2015 than forecast this time last year.

*The chairwoman of the State company that controls Irish Water is to resign.

Rose Hynes, chairwoman of Ervia, has indicated to colleagues that after joining the board of agri-business Origin Enterprises she wanted to reduce her other commitments.

Ervia said Ms Hynes is to leave on October 16.

Online Editors

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