BUSINESSES SEE NEED FOR REALITY CHECK - The Minister for Finance, Brian Lenihan, has said this afternoon's supplementary Budget will not be easy for anyone, but that it will be fair. He said everyone would make some contribution, although those who have the most will pay the most. The emergency Budget is expected to impose extra taxes and spending cuts worth around €3.5 billion.
Gina Quinn, from the Dublin Chamber of Commerce, says that while there are some shuttered shops in Grafton Street, it is also heartening to see delivery vans on the street as commerce continues successfully on one of Dublin's busiest shopping areas. She says the retail sector is currently seeing a significant change in the competitive base in Dublin. Rents had risen too high on Grafton Street and there is an 'adjustment' going on. Unfortunately this means that sometimes some premises will be left empty. Ms Quinn says it is important that the economy gets away from only upwards rent reviews and that companies are being realistic about the rents that can make the economy move forward.
Greencore's chief executive Patrick Coveney says that the current economic turmoil has definitely affected consumer behaviour. He says the reaction in terms of consumption is probably greater than the direct impact on employment or credit to date. Fear and worry is changing consumer behaviour quite fundamentally, he states. People are buying less, shopping less frequently and when they do hit the shops, they are buying more promotion offers and goods on sale. He also says that people are worried about keeping their jobs and the pace of possible pay cuts.
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MORNING BRIEFS - Overnight on Wall Street the three main indices closed lower, but by less than 1%. Tokyo's Nikkei index is down slightly, and in Hong Kong the Hang Seng is down by 1%.
*** On the currency markets this morning, the euro is trading at $1.3379 cents and 91 pence sterling.
