Morning business news - June 27Thursday 27 June 2013 10.26
LATEST EU PLAN ON BANKS WON'T WORK - ANALYST - Overnight European Union finance ministers agreed on a plan to rescue troubled banks - without leaving taxpayers with the bill. The plan will see the banks' creditors and shareholders take the first hits, and then savers with more than €100,000. After that, government help could be called on and taxpayers would be among the last to shoulder losses, having already had to pay for a series of bank rescues in recent years. Finance minister Michael Noonan chaired the talks, and he said that the new plan aimed to establish clarity on who paid to rescue ailing banks. The Dutch Finance Minister said the plan marked a big change in the way that troubled banks are bailed out.
Markets analyst Paul Sommerville, of Sommerville Advisory Markets, says that like everything else from the European Union the plan - in principle - sounds great but it won't work. He says that while it tries to break the link between banks and the sovereigns, the ECB is still telling banks to buy sovereign debt.
On the US, Mr Sommerville describes yesterday's GDP figures as ''dismal''. He says that despite the fact the US Federal Reserve is pumping trillions and trillions of dollars in to the economy there, it managed to eke out growth of just 1.8%. He predicts the market volatility that started when the Fed chairman Ben Bernanke hinted at a tapering off of the US stimulus programme will continue over the summer months.
3V AGREES DEAL IN FINLAND - Irish payment technology company 3V and Finnish mobile company DNA have stuck a deal which will allow mobile payment by smart phone and on the internet. DNA Täpäkkä is like a virtual payment card that works like a wallet app on Windows, iOS and Android platforms. DNA has 2.4 million subscribers. 3V's Kieron Guilfoyle says the new initiative will be rolled out in Finland in the last quarter of this year, adding that the company is also looking at developing a similar system in Ireland.
MORNING BRIEFS - Mick Jagger and Keith Richards have signed up with BMG in a move that will see the German music publisher represent their interests in the Rolling Stones catalogue dating back to the 1960s. The signing, which comes as the Rolling Stones celebrates the 50th anniversary of the release of the band's first single in June 1963, marks the first deal that the Rolling Stones pair have signed in 30 years, following their contract with EMI Music Publishing in 1983.
*** PayPal has said it is going to launch inter-planetary payments - a system for buying things in space. PayPal wants to get into the new field of space tourism, and with companies like Virgin Galactic and Space X bringing space tourism closer, PayPal says it is looking at the complicated issues of space commerce. PayPal president David Marcus told CNN: "We don't have all the answers right now, but it's clear we won't be using cash when we're in space. We feel it's time now - not next year, not when [space tourism] starts to happen - to start figuring out what this looks like."
*** About 90 jobs are to be created in Dublin by IDA Ireland supported so-called fast-growing companies. The companies are Adara Global; eMaint; Primeur; and games developer Nordeus.