Tuesday 20 February 2018

What it says in the papers: business pages

Michael Cogley

Michael Cogley

Here are the main business stories from this morning's papers:

Irish Independent

* The hit to Bank of Ireland's pension scheme from Brexit will dent the bank's capital, making a dividend pay-out to shareholders less likely, an analyst has warned.

The State's 14pc stake makes it the bank's biggest shareholder. In a trading update released to shareholders, BoI said the Brexit decision has resulted in the bank revising its standard defined benefit pension deficit to around €1.2bn at the end of June, a significant deviation from December, when it stood at €740m.

* The Central Bank will publish revised economic forecasts later this month in the wake of the Brexit vote.

Financial Regulator Cyril Roux and other officials held talks with financial sector representatives yesterday about the potential consequences for the sector, following the outcome of the referendum held in the UK on June 23. Mr Roux said the purpose of the engagement was to allow the sector to present their views on the impacts for the regulated financial sector.

* Breaking strict EU fiscal rules to spend more on capital investment could lead to financial penalties and potentially bar Ireland from getting structural funds, Finance Minister Michael Noonan has said.

The minister said fines could amount to up to 0.2pc of the value of the economy.

The Irish Times

* Tech giant Microsoft has won a case in a New York appeals court that means it does not have to turn over emails stored in Ireland to the US government.

The government had requested the emails as part of a drugs investigation.

* Oil firm Providence Resources has said that a number of super major oil groups are lingering over its Druid and Drombeg prospects in the Atlantic Ocean.

The company highlighted the interest at an EGM yesterday where shareholders voted in favour of a €63m rescue fundraising.

* Consumer prices in Ireland increased by 0.4pc in the year to date  new data from the Central Statistics Office has shown.

Miscellaneous goods and services increased by 6pc in the year with education costs also running by 3.8pc.

Irish Examiner

* IDA Ireland has paid out €9.4m to buy out a lease on a building that it wasn't using, which was costing the State agency €1m a year.

The Public Accounts Committee heard the building, which is based in Ballsbridge in Dublin, wasn't being used but the IDA was locked into a lease.

* The National Treasury Management Agency is unlikely to change its plans for bond issuance for this year, saying the Brexit didn't signal a cataclysmic fallout on Irish bonds.

According to a report in the Irish Examiner, the NTMA's chief executive Conor O'Kelly said the agency doesn't need to jump into tap sovereign debt markets.

* Starbucks is looking to up its food offering by taking a stake in Italian bakery company Princi, which sells pastries, pasta, and pizza across Europe.

According to a report in the Irish Examiner, the Italian goods will begin to be sold in Starbucks' roastery locations - opening in Shanghai and New York next year.

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