SEI HELPS SMALL FIRMS TO CUT ENERGY BILLS - Small businesses could save €300m a year by taking simple actions to cut their energy costs according to Sustainable Energy Ireland. SEI assessed 1,500 companies over the last two years and helped them to cut their costs by 10 to 20% by changing simple things like lighting and temperature controls.
The SEI's head of strategy, Brian Motherway, says that because energy was neglected in the past, making savings in this area is actually easier than people would have thought. He says that some of actions are behavioural - turning things off when not in use. Others require a little bit of investment like modernising the lighting system or changing the heating controls. He says that in the 1,500 businesses Sustainable Energy Ireland went in to, not a single one was unable to save energy easily. Mr Motherway says that a firm's actual building is very important when it comes to energy savings. He points out improved insulation and a properly working boiler make all the difference.
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IRISH BANKING SHARES CONTINUE TO FALL - Shares in Irish banks fell by a few per cent each yesterday, and in the past month are down by about 20% each. Since the extent of the NAMA haircut was revealed, AIB shares have dropped by 23%, while Bank of Ireland are down 18%.
Justin Urquhart Stewart, of Seven Investment Managers in London, says that all of the banking shares around Europe are under pressure at the moment. As well as NAMA, Irish banks are facing more competition as they try to raise funds. The banking system is now concerned at its funding levels and also at the amount it will have to write-off if the recession is extended even further. The analyst says that the period of recovery from recession is very dangerous for companies when banks can't provide them with any more facilities.
However, he says that once the NAMA legislation is passed, a level of confidence will return for Irish banks as a line is drawn and they can actually start the process of rebuilding. But he warns that Irish banks are facing a long haul.
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MORNING BRIEFS - OECD figures show pension funds staged a partial recovery in the first half of this year, generating investment returns of 3.5% in nominal terms. But, according to the latest edition of the OECD's Pensions Markets in Focus, by the end of last June total pension fund assets were still 14% below December 2007 levels. Non-OECD countries in the emerging markets seem to be doing much better. Chile has made up its 2008 losses and Israeli pension funds are close to their December 2007 level.
*** For the first time in its 52 years in business, the total amount invested in prize bonds is now more than €1 billion. At the end of last month, the Prize Bond fund reached €1.014 billion, an increase of 26% since the beginning of the year.
*** The world's biggest fast-food company, McDonald's, says it is to close its business in Iceland because it is too expensive for the franchise to operate after the country's financial crisis. All three of its restaurants in Iceland, operated by the same franchisee for the last five years, will stop operating at midnight next Saturday. Jon Ogmundsson said the decision to close the restaurants was mainly due to the severe depreciation of the Icelandic krona and high taxes on imported food. He said he has sold more burgers in the last few months than ever before, but the cost for a kilo of onion, imported from Germany, was the same price as a bottle of good whiskey.
*** The company behind social networking site Facebook officially opens its European headquarters in Dublin's Hanover Quay later today. The 70-strong staff there will take care of online operations, sales, online advertising and user support.
*** On the currency markets this morning, the euro is trading at $1.4903 cents and 91.16 pence sterling.
