ENTERPRISE IRELAND OPTIMISTIC ON EXPORTS - Enterprise Ireland today issues a strategy document for indigenous firms for 2008 to 2010.
Its ambitions include a new level of €4 billion in export sales in the three year period; an increase the number of high potential start-ups; a further boost to research and development and it wants to encourage the internationalisation of the services sector so it can further contribute to economic growth.
Enterprise Ireland executive director Julie Sinnamon says that in preparing this strategy EI have assumed that the market conditions are going to be much more difficult that those that have been enjoyed over the last three year period.
She says that €4 billion in export sales is a stretch target and will be difficult, but looking at the success of Irish industry over the last three year period EI is confident that we will achieve it.
Sinnamon said that the growth of indigenous exports grew by 12.6% in 2006, that the new targets are challenging, but that significant opportunity exists in markets like Brazil, Russia, India and China.
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ULSTER BANK NERVOUS ON CURRENCIES - A report from Ulster Bank this morning predicts that sterling is likely to weaken against the euro.
In total 18% of our exports and 60% of goods from Irish owned manufacturing firms go to the UK and our exporters are already dealing with the very low dollar.
Simon Barry, economist at Ulster Bank, says that slower growth in the UK economy will lead to the Bank of England cutting interest rates, sending sterling to a level of 72 pence against the euro, compared to a current price of 69 pence.
Barry said the global growth backdrop remains positive but that Irish exporting firms should take an active approach to the management of their foreign exchange exposure, given that Ireland's two main trading partners, the UK and the US, are not part of European monetary union.
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NEWS IN BRIEF - Results from online retailer Amazon show its revenue in the three months to September rose by 41% to over $3 billion, beating market expectations. It reported a net profit of $80m, up 313%. However, investors may have been expecting more from Amazon, as its shares fell more than 8% in after hours trading.
*** A report from AIB this morning is likely to suggest that GDP growth will slow to 3.3% next year because of a further weakening in housing activity, slower growth in consumer spending and government spending on services. But AIB economist John Beggs will predict that this recovers to 4% growth in 2009, as the downturn in housing activity slows, providing less drag on the economy.
**A report from IIB Bank is expected today- its 'Debt by Misadventure' examines why household debt has risen so fast here, and whether mortgage and non-mortgage debt pose different problems.
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MARKETS - A further recovery in US stocks overnight with the Dow closing up 0.6% and the Nasdaq closing up 1.6%. This morning the Hang Seng in Hong Kong market is up 0.5%, and the Nikkei in Tokyo is down 0.5%.
On the currency markets the euro is trading at $1.42.5 cents and 69.5 pence sterling.
