AIB SET TO RAISE ANOTHER €1.5 BILLION - AIB has surprised analysts this morning by saying that it will take action to address concerns about its capital adequacy. The bank has said that it plans to increase its core 1 capital by €1.5 billion - on top of the €3.5 billion injection from the Government. It seems that the bank plans to raise this money through the sale of some of its assets.
Kevin McConnell of Bloxham Stockbrokers says after the process that AIB has gone through with the Minister for Finance, the two parties have agreed that AIB requires a total of €5 billion in core tier one capital. €3.5 billion has already been set aside by the Government in preference shares. Mr McConnell says that this morning's statement has come as a surprise. But given the market uncertainty surrounding the banks over the last number of weeks, especially since the news of the setting up of the National Assets Management Agency, he says this has put extra focus on all the bank's capital positions. He also notes that AIB has for the first time given its support to the establishment of the NAMA.
The analyst says that other banks could now follow AIB's decision and he says the focus will now shift to Bank of Ireland. AIB and Bank of Ireland are set to benefit most from NAMA.
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BAD NEWS FOR DUBLIN ON CO2 EMISSIONS - Engineering firm Siemens will launch a report later this morning which says that Dublin is one of the most polluted capital cities in terms of its C02 emissions. Siemens say that Dublin has a higher level of C02 emissions per capita than Edinburgh, Munich, Copenhagen and London. It claims that if Ireland fails to meet its Kyoto targets it will ultimately cost the exchequer money - in terms of carbon credit costs. The firm - which employs over 1,000 people here - says that major steps need to be taken in order to reduce emissions in the capital and at the same time create a significant number of jobs.
The chief executive of Siemens' Irish operation Dr Werner Kruckow says that in comparison with some other European capital cities, Dublin is showing a very high CO2 footprint. He points out that Dublin is emitting 9.7 tonnes of CO2 per capita, this compares to a figure of 7.5 in Edinburgh, 7.1 in Munich and 6.3 in London. He says the city can reduce its carbon footprint by 30% between now and 2025 if it invests in its infrastructure. He says the most important action include investing in renewable energies.
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MORNING BRIEFS - The euro has hit a one-month low against the dollar following comments yesterday by ECB president Jean Claude Trichet that it may now move to cut interest rates again by another 25 basis points. Mr Trichet was in Tokyo where he said that 'one further rate cut' was not excluded and that any such cut would be a 'very measured one'. A euro is currently worth $1.30.12.
*** Reports this morning suggest that Independent News and Media has received a preliminary approach for it main British newspaper - the Independent. It is said that IN&M is working with advisors from the corporate finance group Lazard to see what sort of deal it might secure for the title.
