Monday 23 September 2019

Aer Lingus warning

THOUSANDS of current and former workers at Aer Lingus and the DAA who are part of a troubled pension scheme have been warned by the scheme's trustees that if they don't accept fresh plans to address the scheme's more than €700m deficit that they could face even bigger reductions in future benefits than are currently planned. The draft funding proposal for the IASS pension scheme was presented to Aer Lingus and DAA management yesterday.

SPAIN BONDS CHEAPEST

Spain paid the least since 2006 to borrow for 10 years as foreign investors snap up the bonds of countries emerging from European bailout programmes. The treasury in Madrid, auctioning its new 10-year benchmark note for the first time yesterday, paid 3.559pc compared with 4.098pc on similar maturity bonds in December. It sold 30-year bonds at 4.519pc, compared with 5.432pc for similar debt in March 2013.

€311M REIT DEAL

Dublin-listed property company Green REIT confirmed yesterday that it had agreed a deal with investment company PIMCO to buy Central Park in Dublin for €311.5m from receivers appointed by NAMA. The deal, to be completed next month, is a 50:50 joint venture owned by Green REIT and Pimco unit LVS II.

WAL-MART PROFIT DOWN

US retail chain Wal-Mart, which also owns Asda in the UK, forecast a lower full-year profit than analysts expect, as fewer food stamps, higher taxes and tighter credit erode its sales. Shares in the world's largest retailer fell. Wal-Mart expects net sales growth this year to be at the lower end of its forecast range of 3 to 5pc.

RECORD US FLIGHTS

Dublin Airport is set to notch up a record-number of transatlantic passengers this year, beating the previous record of 1.9 million last year. The DAA said that new routes to San Francisco, Toronto and Newfoundland this year would help deliver a 17pc increase in Dublin Airport's North American capacity.

LLOYDS RISKS REVOLT

UK bank Lloyds risks a revolt among retail investors as well as hedge funds and institutions after warning it may buy back on the cheap high-interest bonds that helped rescue the bank in the financial crisis. Lloyds, 33pc-owned by the UK taxpayer, told investors last week the £7.5bn of bonds it issued to strengthen its capital in 2009 are now unlikely to count towards its capital buffers under new European rules, potentially making them worthless.

Irish Independent

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