2011 LIKELY TO SEE INCREASED NUMBER OF BUSINESS FAILURES - Figures for last year show that the construction sector saw the majority of companies going out of business, followed by the services sector, then retail and hospitality. 30 companies failed a week in 2010, with over 1,500 being declared insolvent. Ken Fennell, of accountants Kavanagh Fennell, says that 2010 was a tough year for Irish companies and while the number of firms going out of business was up 8% on 2009, the figure was not as high as had been predicted. He says that 2011 will probably see a similar picture to last year. While the number of construction firms going bust has probably peaked, Mr Fennell says that the retail and hospitality sectors will continue to suffer this year.
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EXPORTS CONTINUE TO BOOST MANUFACTURING SECTOR - Manufacturers raised employment for the first time in seven months in December, reflecting increased workloads according to the Purchasing Managers' Index from NCB Stockbrokers. NCB economist Brian Devine says that activity in the manufacturing sector rose for the tenth month in a row and was the sharpest since June despite the cold snap experienced last month. He says the increase mainly reflects the export sector - chemicals and high-tech sector - with domestic industry still weak. But on jobs growth, Mr Devine predicts a slow recovery and says it is too early to see whether the jobs situation has started to level off.
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MORNING BRIEFS - Facebook has raised a quarter of an anticipated $2 billion in new funding from Goldman Sachs and other investors in a deal that values the social network at around $50 billion. That valuation would mean the company is worth more than Yahoo or Time Warner, and twice as much as Google at the time of its initial public offering in 2004. Last year Facebook passed Google as the most-visited website in the US. With an estimated 24% stake in the company, the company's founder, 26-year-old Mark Zuckerberg, would have a paper fortune of $12 billion. The deal puts a value of $100 on each of Facebook's 500 million users.
*** The Irish Independent reports that a massive investigation has been launched into a surge in false and illegal accounting practices at thousands of Irish businesses. The Office of the Director of Corporate Enforcement, Paul Appleby, is investigating illegal activity in a range of companies where people have pretended to be auditors and illegally signed off on their accounts. 40% of all new complaints to the ODCE relate to this practice.
*** On the currency markets, the euro is trading at $1.3345 cents and 86.22 pence sterling.
