IMF WANTS SPEEDY RESOLUTION OF EURO ZONE DEBT CRISIS - The head of the International Monetary Fund and former French Finance Minister Christine Lagarde has said the world economic outlook is "gloomy" and no country is immune from rising risks. She said everywhere, starting with Europe, needs to head off a crisis with risks of a global depression. She said that no economy is immune from the escalating crisis, and that that it's going to be hopefully resolved by all countries, all regions actually taking action. The IMF also released its fourth review of the Irish programme yesterday.
KBC Bank economist Austin Hughes says that two important messages came out from Christine Lagarde's comments. The first is that Europe is going to need outside assistance to solve its debt crisis, despite the reluctance by some countries to bail out what is seen as one of the world's richest group of countries. The second importance message was the urgency of measures needed to tackle the crisis. He says that countries must work together to solve the euro debt crisis and to get it under control before it spreads around the world. He says the IMF is also clearly frustrated by the lack of progress being made by European countries on the issue.
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MORNING BRIEFS - The Boyne Valley Group says it has bought the Irish brands of Premier Foods, which are McDonnells, Chivers, Erin and Gateaux. Boyne Valley says the brands complement its current portfolio in honey, olive oil, peanut butter, home baking, condiments and household products. Boyne Valley Group brands span the Food, Personal Care and Home Care products sectors; and include Killeen, Don Carlos, Giovanni di Firenze and Boyne Valley Honey. It employs 300 people. Premier Group is the UK's biggest food producer and its brands include Mr Kipling, Hovis and Smash.
*** Clerys, which has been around since the 1800s, is fighting weak consumer trends and warns that if things do not pick up the challenges facing it will mount. It has already brought in reduced working hours for staff, and has reduced stock and expenses. Its O'Connell Street store was one of the world's first purpose-built department stores and was built in the 1850s. Clerys now also has shops in Leopardstown, Blanchardstown and Naas. To last January its sales were down 19% to €17.4m and its overall loss for the year widened to €2m from €1.8m the year before. The company borrowed a lot during the boom times to pay for a refurbishment which cost €25m. It now has €20m in loans due next February. A statement from Clerys says that the group requires significant capital input to redevelop its property portfolio and that it's exploring a range of options to secure that finance. It says that while things are very challenging, a number of well known brands want to open concessions in the store.
*** Ratings agency Standard and Poor's has downgraded ten Spanish banks by applying new ratings criteria.
*** France's official statistics agency, INSEE, said that it expects France will fall into recession in the final three months of this year and the first three months of 2012.
*** On the currency markets the euro is trading at one dollar and 30.2 cents and 83.8 pence sterling.
