FINAL BILL FOR ANGLO GETTING NEARER €35 BILLION? - There is more talk today that Ireland could have to tap the European Union and International Monetary Fund's €750 billion rescue fund, as concerns about economic and financial stability mounted yesterday. The fresh concerns came after ratings agency Moody's downgraded the senior debt of Anglo Irish Bank. The fate of Anglo's subordinated debt is set to be revealed on Thursday this week.
RTÉ's Prime Time has a report on the banking guarantee tonight. Standard and Poor's analyst Trevor Cullinan tells the programme that the final bill for Anglo Irish Bank is getting closer to its earlier estimate of €35 billion and could still be more. Should this happen, he says, another downgrade of Ireland's rating is possible.
Justin Urquhart-Stewart, of Seven Investment Management in London, says that fears about the country's stability is evident from the current spreads on the market for Irish Government bonds. He says the speads are unfair because Ireland has taken all the right actions to get its house in order and says the 'good student' is being castigated by the markets for these actions. He says what is needed now is further international support from bodies like the ECB as investors need to see that not only is the country doing the right thing but is being supported for doing the right thing.
He says that if Ireland uses the EU rescue fund it won't send out the wrong signals, but will be a sign that the Government is be facing reality. He says that 'Ireland needs to get off the front page' and adds that the country is not Greece and does not have the same problems as the Greek economy.
On Anglo Irish Bank, Mr Urquhart Stewart says that he would like to see some of the debt being restructured - he states this is not defaulting. He also says the debt should be spread out over a longer priod of time.
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MORNING BRIEFS - A trading statement from Greencore this morning says the food group's trading during the late summer months and in September was fully in line with expectations with a robust performance overall. It says sales from continuing businesses in convenience foods are expected to be about 8% higher this year than in 2009. Group operating profit on continuing businesses is expected to be about 20% higher. Greencore also says it expects to deliver a strong performance next year.
*** The Financial Times' Lex column says today that if any big countries were like Ireland the world would really be in trouble. It says that in 2008 Ireland might have been small enough to let fail without imperilling outsiders, but that instead "best-practice" post-crisis policy was followed, and now international investors have come to expect a government dedicated to avoiding anything like default.
*** The Small Firms Association has called on the Government to adjust the current pensions system to ensure a fairer treatment of self-employed individuals. It also wants a more flexible approach to allow self-employed fund their pension. The SFA says most self-employed people would not be able to save for pensions while they are starting their own business.
*** On the currency markets the euro is trading at $1.3427 cents and 84.93 pence sterling.
