A roundup from the world of business
The numbers
16.6%:the one-day fall sustained by CRH on Tuesday as the construction giant reported that its earnings this year would fall 10 per cent. The collapse in share price also weighed on European markets, dragging down peer companies.
23%:the percentage of loans transferred to Nama in the second tranche of transfers which relate to hotels. This compares with 4 per cent in the first tranche.
€90 billion:the total cost to the Government of providing support to the banking sector, according to Standard Poor's. The rating agency estimates the State will pay between €45- €50m through bank recapitalisation, and €40m through Nama.
347:the extra yield or spread that investors demanded to hold Irish 10-year bonds instead of their German equivalents on Wednesday, before falling back to 344.
Good week
Irish property developers in Britain
Limerick man Mike Coffey this week received planning permission – and finance – for a £75 million hotel and aparthotel development in Birmingham. His firm, New Manor Developments – not to be confused with Irish homebuilder Manor Park which owns the Kinsealy estate formerly owned by the late Charles Haughey – has already pre-let the development which is set to open in 2013. Lest finance-starved Irish developers think that British banks are opening the coffers, the money is being provided by venture capitalists rather than banks. Mr Coffey is in the enviable position of having had two venture capital offers on the table.
Bad week
The NTMA
The agency responsible for managing the national debt engaged in a major PR drive this week as global markets responded badly to the downgrading of Ireland’s debt by credit rating agency Standard Poor’s. NTMA’s chief executive John Corrigan appeared on everything from RTÉ to Bloomberg TV in an effort to calm investor fears about the health of Ireland’s economy.
Quote of the Week
“Exceptionally, we have taken issue with the rating agency. It’s something we don’t like to do but there comes a point when the analysis is not robust”
– NTMA chief executive John Corrigan on RTÉ
Moving on?
Rumours abound that Superquinn’s James Wilson may be jumping ship to rival supermarket chain Dunnes Stores. This would be the second major departure of a staff member to the other side in recent months. Superquinn’s Sheena Forde recently left the retailer for Dunnes. To badly paraphrase Oscar Wilde, “to lose one executive may be regarded as a misfortune, to lose two...”
