ANGLO IRISH LIFTS EARNINGS OUTLOOK - There is a very strong trading update from Anglo Irish Bank this morning. It has raised its profits target for its financial year to the end of September, following strong loan growth.
The bank says it anticipates earnings per share will hit €1.29 cent in the full year, beating market expectations by five cent.
Work in progress is what investors watch: the bank says this will exceed the level seen in March, saying it is delivering high quality loan growth and that it expects customer lending balances to increase in the mid-30s per cent range for the full year.
Profit expectations for the full year are for €1.4 billion.
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SLOWDOWN TO WEIGH ON SPENDING TALKS - Exchequer figures published yesterday afternoon suggest a continuing deterioration in public finances. Weakness in the property sector led to an overall deficit, with property weighing on tax receipts after years of bringing in much cash.
The main property taxes, Stamp Duty and Capital Gains Tax, were €370m below target in the first eight months of the year.
Dermot O'Leary, chief economist at Goodbody Stockbrokers, says departments will soon be discussing their plans for 2008 with Brian Cowen, but the talks will take place in a very different context compared with last year.
The economist says the construction sector is slowing, having an effect on tax revenue. He says spending plans will have to reflect the slowdown in tax revenue growth - from 13% this year to around 6-7%.
Mr O'Leary thinks house completions to fall by around a third over a two-year period, knocking about €1 billion off tax receipts.
But he says employment is still performing strongly, with income tax revenues ahead by €100m, as financial and retail sectors take up some of the slack from the building sector.
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TOTAL PRODUCE RAISES ITS AIM - There are good first half results from Total Produce, which was previously part of Fyffes. It grows, markets and distributes fresh fruit and vegetables. The numbers beat expectations, showing earnings per share up 18.3% to 3.62 cent and profit before tax up 13% to €21.5m. The company says the results are satisfactory and raised its guidance for the full year.
