ECONOMIST URGES GOVERNMENT TO REVEAL STRESS TEST RESULTS - Irish Life and Permanent's shares have been temporarily suspended from trading this morning on the Dublin and London stock exchanges. Irish Life and Permanent says that customers have no need to worry - the group said this is a temporary move because of the amount of speculation about the company about which it can not comment. But the shares plunged 45% yesterday.
Economist Jim Power, from Friends First, says that despite the suspension in Irish Life and Permanent's shares, nothing has changed in terms of the group's operations. He adds that deposits in the banking arm of the group continue to come under the Government's guarantee scheme. He says that while Irish Life pension holders may be concerned by the latest turn of events, he says the pension and assurance arm of IL&P is still very profitable and has paid out €1 billion to claims recently. He says the problems of the financial institution is just another indicator of the huge problems in the Irish banking industry and he says the Government should come out today with the results of the bank stress tests in an effort to ease the uncertainty. He says the latest move from IL&P will just serve to increase the intense speculation against Ireland from international investors and will further add to the country's destroyed reputation.
Mr Power says he believes the banking system will require another €30 billion - if not higher - and says it would be 'helpful' if the Government revealed the figure before tomorrow. He says that Irish Life and Permanent is one of the better companies the Government is being forced to take a stake in and he says the Government will try and sell it back into the market as a going concern. Describing it as a good solid business, he says there should be interest from both domestic and international companies.
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MORNING BRIEFS - On the currency markets, the euro is worth $1.4076 US cents and 87.8 pence sterling
