NAMA TO FOCUS MORE ON RESIDENTIAL BUILDING – The Irish Independent says that a major review of NAMA will recommend today that the agency focus more on residential housing.
A major announcement is set to be made by Minister for Finance Michael Noonan and NAMA Chairman Frank Daly later today.
Under the plan, the agency will use its influence in the property market to ensure that much needed homes are built on empty land banks in Dublin.
NAMA does not own the land in question but owns the loans used to buy them.
The plan is said to also recommend that NAMA will continue in existence, despite speculation that it will be wound up early.
US WANT S TO CLAMP DOWN ON FIRMS MOVING OVERSEAS – The Irish Times reports that the Obama administration has added its voice to the growing chorus of criticism of US companies shifting their legal addresses overseas, in many cases to Ireland, urging Congress to curb the tax-cutting practice.
The Wall Street Journal reported late yesterday that US treasury secretary Jack Lew urged members of Congress in a letter to pass legislation immediately “to shut down this abuse of our tax system.”
The US administration joined critics of a practice known as “inversions” where a US company acquires or merges with a foreign company allowing the firm to relocate its legal address for tax purposes to a low corporate-tax country such as Ireland where the rate is 12.5% avoiding the higher US corporation tax rate of 35%.
The newspaper said that Mr Lew’s letter to congressional tax-legislating committees criticised US corporations that move overseas to avoid the US tax rate while continuing to operate on US soil and benefitting from US legal protections, infrastructure and basic research.
INVESTORS LOSE APPETITE FOR EURO STOCKS – The Irish Examiner reports that the amount of international investors who feel the ECB will not undertake a round of quantitative easing to stimulate the euro zone economy, until next year at the earliest, has shot up 10% in the past month.
According to the latest fund manager survey from Bank of America Merrill Lynch, 25% of global investors don’t anticipate ECB quantitative easing measures until 2015, up from 15% in June.
Only 12% of respondents said they expect Frankfurt to begin quantitative easing measures before the end of September.
“Regional investors now see global re-acceleration as the likeliest source of euro zone growth; 33% of respondents point to this driver after a rise of eight percentage points month- on-month. It has overtaken a renewed stimulus programme as the panel’s primary driver of regional recovery,” Bank of America said.