ECB SET TO HOLD RATES STEADY, WITH A CUT EXPECTED FROM BANK OF ENGLAND - The European Central Bank and the Bank of England decide on interest rates today. Chiefs at both banks will be mindful that the US Federal Reserve has slashed rates there by 2.25% in the last five months, including two recent interventions to try to hold back the tide of US recession.
IIB Bank's chief economist Austin Hughes says the ECB is coming under enormous pressure to use interest rate policy to respond to deteriorating euro zone economic conditions, though not to a point where it will cut interest rates today. He says the ECB is in a difficult position as it does not want to see higher inflation become embedded in the euro zone economy.
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JOBS TO GO AT ARNOTTS WHEN REDEVELOPMENT STARTS - Hundreds of jobs are expected to be lost at the Arnotts' flagship shop on Henry Street in Dublin when a three year redevelopment programme for the store and the wider area begins in September. A company spokesman declined to comment on any redundancies at the flag ship store, which employs 950. Arnotts says that when plans are finalised they would be communicated to staff. A redundancy programme at Arnotts is seen by the retail sector as inevitable given the level of disruption involved during construction. Arnotts currently employs 950 people and ultimately aims to employ 1,200 when the three year redevelopment is completed. A further 3,800 people will be employed in the wider redeveloped Northern Quarter.
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MORNING BRIEFS - Aer Lingus has just published its traffic statistics for January. The airline said its total passenger numbers grew by 10.8% last month to 706,000. Its load factor - how many seats it fills on its planes - fell from 69.2% to 64%, as the airline increased capacity on both its shorthaul and long haul routes. Aer Lingus started its new controversial Belfast-Heathrow service last month and it said its load factors were encouraging and ahead of expectations.
*** Fruit importer Fyffes ras reported revenues of €553m for 2007, compared to €408m the previous year. It says adjusted profit before tax for 2007 was €18.4m compared to almost €22m last year. The adjusted figure excludes its share of profits from property spin-off Blackrock. It also excludes exceptional items and when they are factored Fyffes' pre-tax profit figure is further eroded to €13.2m. The company says it is targeting a mid single digit percentage growth in earnings, despite high inflation in the food industry.
*** Unusually for an Irish listed company this morning we have an upbeat trading statement. This one covers the three months from October to December at the country's largest pharmaceutical wholesaler, United Drug. The company says it continued to experience good trading conditions in the three months and its performance was well ahead of the same period in 2006. It said it continues to see opportunities to expand. United Drug bought three companies in the last few months.
