IRISH EXPORTERS SEE A RETURN TO GROWTH, BUT JOB LOSSES STILL A CONCERN - The latest review of Ireland's overseas trading from the Irish Exporters Association shows that on the surface at least the news looks promising. The report shows that exports of pharmaceuticals, chemicals and medical devices defied the global recession and helped pull the overall figure for Irish goods exports into positive territory. The Association is predicting that total Irish exports will increase by 1% to €155 billion for this year, but also warns that job losses will continue.
The IEA's chief executive John Whelan says the multi-national sector, which is driven by chemicals, pharmaceuticals and medical devices, is moving extremely well as worldwide demand continues to grow despite the global economic downturn. This sector accounts for 56% of the country's total exports. However, Mr Whelan says the indigenous sector, which would include food exports, is having a very tough time at the moment. Exports in this sector are down 10% in the first six months of 2009 and employment in the traditional sector is continuing to decline. He says that without any strong stimulus measures from the Government, the economy will be left even more unbalanced by the end of the current recession. He adds that current exchange rates are also continuing to hamper Irish exporters.
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'TOUCH AND GO' FOR INDO GROUP - Independent News and Media went on Prime Time last night to talk about the group's financial struggles to renegotiate debts and avoid examinership. Sources are saying that an equity swap worth €100-120m and a rights issue could be in the pipeline. But speaking on the programme, INM's chief executive Gavin O'Reilly said it would be inappropriate to comment on the bond matter as nothing has been agreed and the issue has to come before the INM's board.
Professor of Journalism at City University in London, Roy Greenslade, says Gavin O'Reilly's comments mean that it is making 'a good fist of what it is really a very bad hand'. He says that Mr O'Reilly knows that everything hangs on pulling off this deal and that it is key to the saving of the company. He says that Denis O'Brien's strategy for the future direction of the company remains unclear.
The Professor says that despite Mr O'Reilly plan for INM, it will be 'touch and go' for the media company. He points out that media groups around the world are in trouble, especially if the firm is heavy on newspapers as is the case with Independent News & Media. He says it is really a matter of faith - and says the crucial question is whether advertising will return to normal levels after the recession ends.
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MORNING BRIEFS - A US security software company is to create 120 jobs at its Cork operations. McAfee's products offer security to people to browsing the internet and shopping online. The firm is based on Little Island in Co Cork and these new posts will, we understand, be looking after customers in Asia. The existing 180 staff are involved in software engineering and sales.
*** Former Intel boss Craig Barrett had some harsh words for Ireland's record in research and development when he addressed the forum in a closed session on Friday, according to those present. Dr Barrett is reported to have told the conference that many of the reasons why Intel came to Ireland in the first place no longer applied, and that spending on R&D was only half the level it should be.
*** Official figures show that the number of people working in the economy in the second quarter of this year fell by more than 8% from a year earlier. The Central Statistics Office also said the unemployment rate jumped to 11.6%, from 10.1% in the first quarter.
*** On the currency markets, the euro is worth $1.4803 and 90.39 pence sterling
