Wednesday 17 January 2018

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

*Permanent TSB and other smaller lenders will be subject to "non-public" stress tests next year, despite falling outside the scope for review of the strength of Europe's biggest banks.

The European Central Bank's new unit for overseeing banks, the single supervisory mechanism (SSM), is to carry out a separate round of stress tests for banks that fall under its supervision.

However, this will not be part of the European Banking Authority's (EBA) stress testing of the big lenders, SSM chief Daniele Nouy said. Fine Gael MEP for Dublin Brian Hayes said it means Permanent TSB could face another round of stress testing as soon as the first quarter of 2016.

*Fears that the Dublin office market may see a glut of supply in three years' time that could send rents plummeting have been dismissed by Davy Stockbrokers.

In a note to clients, Davy said that planning applications for about 6.6 million sq ft are currently lodged - the equivalent to nearly a fifth of the current supply in Dublin.

Last month Green Reit claimed that if all that supply came on to the market in 2017 or 2018, it could drive down rents very quickly, and potentially leave property investors nursing heavy losses. Davy, however, believes that scenario is now unlikely.

*Kerry-based financial firm Fexco was paid €5m last year by the the Prize Bond Company for administration of parts of the scheme, accounts for the prize bond firm show. An Post received €3.6m.

The two companies run the business on behalf of the National Treasury Management Agency (NTMA), with Fexco and An Post's 50-50 joint venture having entered into a more than nine-year contract with the agency in 2010. The €5m earned last year by Fexco compared with €4.8m it made in 2013.

The Irish Times

*Cerberus collected €100m of loan repayments in eight months from developers whose loans it bought as part of Project Eagle.

Newly filed accounts show the payments were made between April 17th 2014 and December 31st of that year. The remaining balances due came to £4.35bn.

*A fat finger trade led Deutsche Bank to pay a hedge fund client $6bn. The money was recovered the next day but the incident caused embarrassment to the bank, which is struggling to restore profitability.

A junior member of staff processed the trade while his superior was on holiday. He processed a trade for a gross figure rather than a net value, a source said.

*IBRC chairman Alan Dukes warned Finance Minister Michael Noonan that comments by ministers and Government spokespeople were unjustly damaging to people including the bank's senior management.

Documents released under the Freedom of Information act to Independent TD Catherine Murphy show Mr Dukes sought clarifications of "reputational, professional and personal significance to the former directors and management".

He took particular issue with a comment about Anglo Irish Bank - which was folded into IBRC - having taken a "bullet in the head".

Irish Examiner

*The Euro fell yesterday for a third consecutive day on speculation that ECB president Mario Draghi will consider increasing monetary stimulus.

It's the currency's longest stretch of losses this month.

ECB Governing Council Member Ewald Nowotny signalled the bank will not expand quantitative easing "any time soon".

*The record price received by a foal by the legendary racehorse Frankel helped spur pre-tax profits of €1.8m at Goffs last year.

Chairman Eimear Mulhern - daughter of Charles Haughey- said the year to March 2015 was "very positive".

She said Goffs was proposing a dividend of 5c per share, up from 3c per share last year.

*Almost nine in 10 firms have committed to taking on new staff in the next year, according to a new survey.

The survey - undertaken to coincide with the Enterprise Ireland/Deloitte CEO forum - says access to skills is now a bigger challenge than access to working capital.

Furthermore, firms now see communication skills as more important than academic skills.

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