MARKETS EYE STRESS TEST RESULTS - The markets get their say on the stress tests on Europe's 91 biggest banks when they open later this morning. On Friday, all but seven passed a demonstration of how they would fare if recession returned and the borrowing costs of heavily indebted countries climbed. But there has been a lot of criticism that the tests simply were not tough enough.
Oliver Gilvarry, from Dolmen Stockbrokers, says he is expecting markets to be slightly higher this morning. He says that traders will welcome the increased level of detail on the banks' balance sheets. He adds that markets should also be boosted by good GDP figures from the UK last week and comments from US Federal Reserve Chairman Ben Bernanke which suggested that US interest rates will remain low. A total of 12 banks, including AIB, just scraped through the stress tests and the analyst says that the European tests were less onerous than US tests.
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IRISH COMPANIES GROWING MORE CONFIDENT - There is growing confidence from some of Ireland's biggest companies about their performance this year. A survey of 50 leading names in Irish business by Deloitte reveals that between the first and second quarters of 2010, the number expecting their performance to improve more than doubled.
Deloitte's Shane Mohan says that the internationally traded sector is the most optimistic, based on what it is seeing in the US and in some parts of Europe, as well as further afield. However, the fear of a similar Greek financial crisis remains and some companies remain concerned about a double dip recession. Mr Mohan also says that a majority of firms surveyed expect several of the semi-state companies to be privatised over the coming months.
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MORNING BRIEFS - BP says there Is still no final decision made on the future of its embattled chief executive. That Is despite widespread speculation that Tony Hayward is to step down over his handling of the Gulf of Mexico oil spill. BP's board meets to consider its options today.
***Tullow Oil has made a discovery in an offshore well in Ghana that management have described as significant. The company is going to drill at it again to decide just how significant.
*** On the currency markets, the euro is buying $1.2910 cents 83.5 pence sterling.
