NEW CREDIT UNION INITIATIVE TO ASSIST CAR BUYERS - New car sales grew last year, and that rise has continued into the early part of this year. But the sale of used cars remains difficult for the industry. In response to that difficulty, Direct Access to Credit Unions has been set up. This is an initiative between the credit unions and the motor industry, that will provide easier access to funding for customers buying cars.
SIMI's director general Alan Nolan says the scrappage scheme boosted new car sales last year and adds that finance is easily available for this sector of the industry and franchise dealerships networks. But for used car sellers in the independent garages, the issue of finance has remained a big challenge. Mr Nolan says the DACU initiative is an exciting one and says that consumers should shop around the many options out there to get a good deal. People interested in the DACU scheme can apply online, the credit union will assess the application and people will have an answer within 48 hours.
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CHIEF FINANCIAL OFFICERS SEE FALLING CONFIDENCE LEVELS - A report out this morning says business confidence among Irish chief financial officers fell sharply towards the end of last year. According to accountants Deloitte, the number of CFOs forecasting an increase in profits in the next six months dropped to 42% from 61% in its previous report.
Shane Mohan, a partner at Deloitte, says the survey covered the last three months of 2010 which saw the arrival of the IMF and the EU in the country as well as the harsh Budget. He says it is no surprise that CFOs are 'anxious and frustrated'. He says the last quarter saw a big fall in confidence while lots of challenges remain for companies. However, Mr Mohan adds that there is a good level of positivity on the employment front. He says the survey concentrates on the large multinationals which are seeing other world economies growing. He adds that the level of foreign direct investment into the country is also quite strong. He says that company bosses are now waiting to see the election results and the economic policies of the new government.
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MORNING BRIEFS - Oil prices have broken through the $100 a barrel level for the first time in more than two years over market fears that Egypt's turmoil will hit oil flows. Egypt controls two of the most important methods of the transportation of oil. Both the Suez Canal and a pipeline which links the Red Sea with the Mediterranean are open, but the uprising against Egypt's president has brought much of the rest of the economy to a halt. 8% of the world's seaborne trade passes through the Suez Canal. Brent crude, the global benchmark, surged to a high overnight $101.19 a barrel, the highest since September 2008.
*** Figures out this morning show that 96 companies went out of business in January, a 13% drop compared with the same month last year. The figures from InsolvencyJournal.ie also show that the January figure was down by 28% compared with December, but the report says it is too early to say whether the rate of insolvencies has peaked. Construction continued to be the worst affected sector with a quarter of the total in January. The number of manufacturing firms going out of business also dropped.
*** The manufacturing sector grew at its fastest pace in more than 11 years in January. The NCB Purchasing Managers' Index was the highest since April 2000. NCB said the rise in production was due to a sharp increase in new orders, but it was also influenced by an end to the severe weather conditions seen in December. New export orders rose at the third-fastest rate in the survey's history, while employment in the sector climbed slightly for the second month in a row. But costs also increased to a 29-month high as oil prices jumped, leading companies to increase the prices they charged.
*** On the currency markets the euro is trading at $1.3740 and 85.51 pence sterling.
