EURO AT NINE MONTH HIGH AGAINST THE DOLLAR - Dollar weakness is continuing on the currency markets. This morning the euro is trading at $1.46 and sterling is at $1.67. The weak dollar is pushing up the price of gold and other commodities and contributing to gains on financial markets across the world this week.
James Hughes, markets analyst with CMC Markets in London, says that euro's recent rally is starting to run out of steam. He says that all of talk of economic recovery, the slightly better economic news, the re-emergence of merger and acquisition news is giving the markets a shot in the arm, but he adds whether it is giving a true value of where the markets actually are remains to be seen.
'All is pointing to good news at the moment,' he states. He says the latest raft of improved news stems from the G20 meeting last weekend when a lot of the finance ministers said they would continue with the stimulus programmes.
Mr Hughes says that September is always a risky month for markets. Usually markets suffer from the 'September slump', but so far this year the slump has not materialised. However, investors are remaining wary as to how September will run on. He also says there is a danger of investors wanting to take their profits from the recent rally.
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MORNING BRIEFS - Donegal Creameries has released its preliminary results for the six months to the end of June. Its pre-tax profits dropped by 57% to €1.5m for the six months to the end of June, down from €3.5m during the same period last year.
Revenues fell by 17% to €57.7m and the company said that the background from which the figures are reported has undoubtedly been difficult.
*** The US Treasury Secretary Timothy Geithner has said that a strengthening economy means the American government can end some of its extraordinary support for markets.
Geithner told a Congressional Oversight Panel that the US economy is in far better shape now than a year ago when it was 'on the verge of collapse', but added that it still has problems.
*** The social networking site Twitter is changing its terms of service to allow advertising to its users. 45 million people use the Twitter website each month and users are allowed to send an unlimited number of messages each containing up to 140 characters.
Twitter founder Biz Stone has said the company wants to keep its options open but is wary of annoying customers by bombarding them with ads.
*** Dunnes stores director Margaret Heffernan has said the company will remain a family run company and will remain in Irish hands.
Ms Heffernan was speaking yesterday at the re-opening of the supermarket's Patrick Street shop in Cork City.
