Thursday 19 July 2018

What it says in the papers: business pages

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

Gavin McLoughlin

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

Irish Independent

*VivaAerobus, the Mexican airline that's almost 50pc-owned by Declan Ryan's Irelandia Aviation, is drafting a fresh blueprint for a stock market flotation after it pulled plans for an initial public offering (IPO) in early 2014.

And Mr Ryan - a son of the late aviation finance pioneer Tony Ryan - is also eyeing opportunities in Cuba.

The Caribbean island is on the cusp of a major tourism boom as it is in the process of normalising relations with the United States after decades of isolation.

VivaAerobus, with a low-cost model, is Mexico's fourth biggest carrier with a 12pc market share.

*Exporters are being warned not to bet on a recovery in sterling if Britain votes to stay in the European Union.

Strategists and investors are pointing to other reasons for the UK currency to stay weak, from a gaping current-account deficit to speculation interest rates will stay low for the foreseeable future after the economy slowed dramatically in the first three months of this year. The pound has already fallen sharply against a raft of currencies.

Last November a euro bought just 70 pence sterling, but that had risen to 81 pence by last week, amid doubts about Britain's membership of the world's largest single market.

*Irish oil explorer Providence Resources is in talks with its lenders on how to fund its share of $7m (€6.2m) the company was ordered to pay to drilling firm Transocean by a court in London yesterday.

Irish stock exchange-listed Providence Resources said it is now "in active discussions" with its financial advisors and lender "to ensure that the company has the appropriate financial resources to satisfy its obligations to Transocean".

The decision is the latest blow to Providence Resources which has struggled to capitalise on its portfolio of Irish off-shore oil finds.

The Irish Times

*Around 3,000 taxpayers who appealed Revenue decisions on tax dues will have a chance to take part in settlement talks before the cases are sent to the new Tax Appeals Commission.

Letters will be sent by Revenue to the people involved, who will have 30 days to say if they wish to get involved.

They will then have three months to conclude a settlement, after which time the cases will go to the Tax Appeals Commission.

*CRH has reportedly bid for an Indian cement business being sold by the Irish company's rival LafargeHolcim.

CRH is among ten interested parties for the business, which is valued at $1.5bn, Merger Market said.

Other reported suitors include Blackstone and the Carlyle Group.

*RTE will have to restructure itself and cut services if the Government doesn't lift the State broadcaster's funding, according to outgoing RTE director general Noel Curran.

Mr Curran said RTE has faced persistent and structural problems.

He said it wasn't looking for a free ride but needed more money to meet its statutory obligations.

Irish Examiner

*Insurance company is refunding thousands of motor insurance customers who it mistakenly overcharged.

The company confirmed 8,000 people had paid more than they should have because of what it said was a technical error relating to vehicle history information.

The average refund is €80 plus an extra 5pc in compensation.

*European shares rose the most in a month on optimism that the Chinese economy is stabilising.

Commodity producers led the gains, while banks rose the most since October 2011.

Dublin's Iseq underperformed other markets.

*Unions have urged Bulmers maker C&C to find a buyer for one of Britain's oldest cider plants.

The Shepton Mallet mill in Somerset is scheduled to close in the summer, ending a 246-year tradition.

Bosses at the Unite union said it was "unacceptable" that the company was letting "loyal" staff go.

Online Editors

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