MOVE ON ANGLO DEBT SET TO BOOST EXCHEQUER EARNINGS - The Government stands to realise an unexpected financial gain next year from moves by the Central Bank to accelerate the disposal of debts built up by the defunct Anglo Irish Bank. The Central Bank has taken steps in recent months to speed up the rate at which it sells off €25 billion in government bonds it has held since the deal last year to scrap the Anglo promissory note scheme, says the Irish Times. The bonds are being sold to private investors at a profit, and a large portion of the money realised will eventually end up in the exchequer, it is understood. Roughly 80% of any profits made by the Central Bank go to the Government, but the money is paid only in the following year. The extent to which the increased bond sales improve the fiscal outlook for Government as it prepares for the Budget next month remains unclear. Although the Central Bank was scheduled to sell at least €500 million of the debt by the end of this year, market sources said the Central Bank was now well on track to beat that minimum target. The deal to scrap the Anglo promissory notes led to the liquidation of Anglo’s successor, Irish Bank Resolution Corporation, and the conversion of notes into government bonds now held by the Central Bank.
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NAMA IS SET TO SELL OFF FACEBOOK HEADQUARTERS 'FOR €120m' - NAMA is to sell off Facebook's European Headquarters in Dublin as part of a €250m portfolio of offices in the capital, writes the Irish Independent. The State bad bank has hired property agents CBRE and JLL to dispense with the portfolio, which is dominated by Facebook's office block at 4 Grand Canal Square. The 120,000 sq ft offices are in the heart of the "Silicon Docks", where Google and a host of startups sit alongside Facebook and trendy restaurants and bars. The building is yards from the Bord Gais Energy Theatre, which changed hands this week for €28.5m. The Facebook offices will likely sell for a multiple of that amount. A sister building - 1 Grand Canal Square - was sold for €93m nearly a year ago. Given the increase in commercial property prices in the top areas of Dublin, the 4 Grand Canal Square building is expected to sell for more than €120m. Facebook employs more than 500 staff in Dublin, and moved into its current offices earlier this year.
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SPORTS DIRECT BETS ON TESCO RECOVERY - Billionaire Mike Ashley’s Sports Direct International made a £43m (€55m) bet on a recovery in Tesco’s share price, days after the biggest UK grocer said it overstated its profit forecast. The Irish Examiner says that Sports Direct, Britain’s largest sports-goods retailer, said yesterday it entered a so-called put option agreement with Goldman Sachs over 23 million Tesco shares, or the equivalent 0.28% of the company’s share capital. “The investment reflects Sports Direct’s growing relationship with Tesco and belief in Tesco’s long-term future,” Sports Direct said. Tesco shares fell to the lowest in more than a decade this week after the supermarket company suspended four executives and said it had discovered that first-half profits had been overstated by £250m. Standard & Poor’s said late yesterday that the grocer’s credit rating may be cut to junk. The shares dropped 1.2% to 192.5p in London yesterday, the lowest closing price since April 24, 2003. Sports Direct said its maximum exposure under the agreement will be limited to £43m. It’s not the first time Mr Ashley’s company has made a wager on a UK retailer. In January, it took a bet on shares of department-store operator Debenhams using a similar option agreement.
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BANKERS' PAY WITHHELD FROM LORD HILL'S BRUSSELS REMIT - Jean-Claude Juncker has deprived Britain’s Lord Hill of lead responsibility for overseeing financial sector pay in a serious setback for London that will help disarm critics in the European parliament, reports the Financial Times. In recent private meetings in Brussels, the incoming European Commission president has made clear that Lord Hill will have remuneration policy carved out of his job as EU commissioner overseeing Europe’s financial sector, according to two people familiar with the matter. The decision from Mr Juncker comes as Europe’s banking watchdog prepares to clamp down on allowances designed to sidestep the EU bonus cap, in an intervention next month that threatens to throw pay policies in the City of London into turmoil. Pay curbs on the City, including enforcement of the banker bonus cap, will now be principally under Věra Jourová, the former Czech minister for regional development who has been nominated to become justice commissioner. Mr Juncker’s decision is highly political and emerges as Socialist and Green MEPs issue threats to veto Lord Hill’s appointment over fears he will bend to City demands. Gianni Pittella, the leader of the Socialist bloc, had warned he would “reject” any commissioner who refused to tackle the “provocation” of allowances.
