PORTUGAL NEXT FOR EU BAIL-OUT? - It is looking more likely that Portugal is going to have to take a bail-out after a bond auction there yesterday saw its cost of borrowing hit the highest level since Portugal joined the euro. Its government said the yields were unsustainable in the long run without Europe-wide action, but its Treasury Secretary Carlos Pina said the country did not require an international bailout which the market sees as all but inevitable.
Fernando Fernandez, of the IE business school in Madrid, says rescue mechanisms to date have not worked and they need to change. He said the subject will be discussed at this month's European summits.
The Professor says there is no doubt in his mind that Portugal will be forced to take a bail-out and says the only question remaining is what terms that rescue plan will contain. He says it makes no sense for Portugal to enter a new bail-out deal while there is so much uncertainty and discussion about the terms of the current mechanism. He says the terms and interest rates on the current European bail-out fund are unjustified, adding that the fact the IMF rescue fund is costing Ireland less than the EU fund makes no sense. He says that countries should not face an extra burden because they are in Europe. He warns that the euro debt crisis in Europe is far from resolved with the likes of Spain and Italy still a cause of concern.
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MORNING BRIEFS - Origin Enterprises has results for the six months to the end of January. Its earnings per share are up 32%, operating profit is up 14% while its revenue rose by 3%. Separately Origin has announced the acquisition of agri-services groups United Agri Products and Rigby Taylor in the UK
*** The Forbes magazine Rich List is out this morning. This year the list has the biggest ever number of billionaires - 1,210, - with a combined wealth of $4.5 trillion. China doubled its number of billionaires, and Moscow now has more billionaires than any other city. The world's richest person for the second year in a row is Mexican telecoms tycoon Carlos Slim Helu, he is 71 and chairman of Telmex. Last year he added $20.5 billion dollars to his fortune and is now worth $75 billion. At second and third is Bill Gates ($56 billion) and Warren Buffet ($50 billion). The richest lady is Liliane Betancourt, of L'Oreal - she is 15th with $23.5 billion. Denis O'Brien is in there too - he is down as the 254th richest billionaire with $4.2 billion - due to Digicel's success in the Caribbean Islands.
*** On the currency markets the euro is trading at $1.3846 cents and 85.65 pence sterling.
