EURO LOWS MAY BE A POSITIVE - In recent days, the euro has been sliding against the dollar and sterling. It hit four- and five-month lows of $1.4180 and 86.98p sterling respectively yesterday.
This is great for exporters, but the underlying reasons for the falls relate to investors becoming increasingly worried about the prospects for the euro zone.
John Moclair of Bank of Ireland Global Markets said this trend started in the third quarter of last year, falling 6% against the dollar and 7.5% against sterling since then.
He said European economic data had been sluggish, but the main reason was concern about euro zone public finances, particularly Greece. Mr Moclair said Greece did not seem to have yet put a credible plan for stabilising its deficit in place, while support from the European Central Bank for Greece had been seen as lukewarm so far.
He said a weaker euro was good for exporters, but would push up petrol prices. The analyst also said weakness against sterling could make cross-border shopping less attractive.
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NEWS AND CURRENCIES - The former CEO and chairman of DCC Jim Flavin has added to his statement made yesterday after the publication of the High Court Inspector's report which said he did not intentionally break the law in selling Fyffes shares in early 2000.
Mr Flavin said he was 'immensely pleased' that what he said were the 'high standards' that DCC sought to foster in areas of compliance and corporate governance are fully reflected in Bill Shipsey's report.
On the currency markets, the euro is strengthening slightly. It is worth $1.4191 and 87.18p sterling.
