SHARE SURGE PUTS ISEQ IN TOP RANKINGS - Ireland's benchmark stock index is one of the best international performers in 2014 and set to end the year trading above the psychologically important 5,000 mark - the first time since 2007 that it will have ended the year above that level.
With just two full trading days left this year - and a half day on New Year's Eve - the ISEQ Overall Index would need to shed 3.85%, or just over 200 points by mid-week in order to dip below 5,000, writes the Irish Independent. The ISEQ Overall Index closed at 5,200.13 on Christmas Eve, still hovering around the highest level it's been at in over six years. The index closed at 5,325 on December 5. That was the highest point since June 2008, when the index was on a sharp downward trajectory. In February 2007, the index breached the 10,000 mark but ended that year at 6,934. Within another 12 months it had lost nearly 67% of its value as the country spiralled towards economic meltdown. Since December last year, the ISEQ has gained just over 16%. That makes it one of the best performers among international stock indices. The FTSE-100 rose just 1.26% in the past year, according to Bloomberg. Germany's main DAX index has climbed 4.57%, while France's CAC-40 has risen 1.84%.
***
AIB CREDIT APPROVAL TO SMALL BUSINESS UP BY 52% - AIB approved €5.6 billion in credit to Irish SMEs in the first 11 months of this year, according to latest data from the bank. This was 52% ahead of same period in 2013, says the Irish Times. In November, the bank approved €586 million in loans to SMEs. AIB said that the increased demand was fuelled by the recent uplift in economic activity and improved business and consumer confidence. This has been evident in a number of sectors, particularly agriculture, transport, retail and hospitality. The bank said farmers, particularly in the dairy sector, are investing in their operations before the planned removal of milk quotas in 2015. In transport, light commercial vehicle registrations were up 52% year on year and heavy goods registrations were up 20% as operators replace their fleets. In retail, investment in existing and new operations in the convenience retail sector has been taking place. A significant increase in foreign visitors is prompting investment in existing hospitality operations. There has also been an increase in the purchase and sale of pubs and hotels.
***
COFFEE CHAINS BREW ROBUST FUTURE IN CHINA - From Best Buy to B&Q, many foreign brands and business models have struggled in China. But perhaps the least likely western retail concept of them all has prospered the most: foreign coffee shops. Despite a history of thousands of years of tea-drinking in China, coffee chains from the US, UK and South Korea are expanding rapidly and coffee shop sales are growing faster than almost any mainland retail segment, writes the Financial Times. According to figures from Euromonitor, coffee chain sales have risen from less than Rmb10bn ($1.6 billion) in 2008 to more than double that last year, with sales expected to double again by 2017. Starbucks, the US coffee chain, virtually created modern café culture from scratch in China, retail analysts say, pointing out that tea is not just the country’s most popular drink, it is also deeply embedded in Chinese culture. Since opening its first mainland store in 1999, Starbucks has become one of the most famous lifestyle brands on the mainland, by promoting its shops as stylish places to meet friends and approximate western lifestyle. Its popularity has even transformed Chinese taste buds, with fresh coffee consumption rising too.
***
REVENUE TO CRACK DOWN ON PARENTS' TAX FREE GIFTS - The Revenue Commissioners has fired a warning shot to parents looking to avail of loopholes in the law to gift their offspring expensive items tax free, says the Irish Examiner. According to a newly issued guidance from Revenue, offspring who are in receipt of expensive gifts from their parents - anything from mortgage contributions, honeymoons, and accommodation/rent-free dwelling in secondary property assets - could be liable for gift tax payments. Revenue issued the update following up on restrictions made, in the latest Finance Bill, to exemptions from capital acquisitions tax which, typically, imposes a charge on individuals who receive gifts and inheritances where the value exceeds that individual’s lifetime tax-free threshold. The concern on the part of Revenue is that parents are essentially abusing exemptions that cover payments for things like child support, education, and maintenance; by using them to gift valuable assets to their offspring tax free. The tightening up of the exemptions will now only see offspring in full-time education up to the age of 25, or those who are incapacitated, qualify.
