IRISH COMPANIES NORTH AND SOUTH NOT FEELING FULL IMPACT OF CREDIT CRUNCH YET - The first all-island business monitor report from BT and InterTradeIreland is published this morning. The survey finds that most Irish companies have not reported much evidence of the credit crunch so far but expect that it will begin to bite in 2009. 78% of them agreed that the crunch would impact on the economy over the coming 12 months. The survey also found that two thirds of companies involved in cross-border trade expect volumes to increase in the coming months.
BT Ireland's chief executive Chris Clark says the survey confirms the fact that Irish companies are beginning to feel the credit crunch and the wider worsening economic climate. But he says that the real impact will be seen in the coming few quarters. He says that while 62% of companies are feeling some sort of pinch, they are not expecting to radically modify their business plans as a result.
Mr Clark says that one of the aspects of the survey which surprised him personally was the fact that 41% of the 4,000 respondent companies said that they are engaged in some sort of all-island or cross border trade. Two thirds of those expect that volume of trade to increase over the coming months. However, there are concerns over the island's transport infrastructure as well as the strengthening euro against sterling.
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MORNING BRIEFS - US computer products and technology services company Avnet has extended the date for Horizon shareholders to accept its takeover offer. The deal has been agreed to by almost 81% of Horizon shareholders and the deadline has been extended to June 30.
*** Investment firm Babcock and Brown has announced that it is appointing external advisers to its strategic review in order to speed up the process. The company is desperate to boost investor confidence after its share market value plummeted last week. At one point on Friday, shares in Babcock and Brown Capital fell by as much as 33% amid concerns about the amount of debt it is carrying. There was speculation over the weekend that it will eventually have to get rid of Eircom in order to raise money. This morning's news seems to have restored some confidence and this morning the company's share price was up 1.1% on the Australian stock exchange.
+++ Friday was also a bad day for the Euro - thanks in no small part to the rejection of the Lisbon Treaty by the Irish electorate. The currency fell to a three-year low - the biggest decline since the French and Dutch no votes in 2005. It ended the week 2.6% down on the dollar.
*** As Europe digested the implications of a no vote over the weekend, it will be interesting to see how the euro fares today. This morning it is worth $1.54 and 78.9 pence sterling.
