DUBLIN'S STATUS AS FINANCIAL HUB IMPROVES IN GLOBAL INDEX - Dublin’s standing as a global financial hub enjoyed something of a bounce in the latest Global Financial Centres Index (GFCI).
The city jumped 18 places to rank 52nd in the survey of 82 financial centres across the globe, putting it on a par with the likes of Mumbai and Bangkok, says the Irish Times. However, the improvement only partially reverses Dublin's dramatic decline in the wake of the financial crisis. Prior to 2010 it was always ranked within the top 30. In 2009 it ranked as high as 10th alongside cities like London, New York and Zurich. While the crash cut a swathe through the financial sector here - reducing the numbers of retail banks from 12 to five, Dublin still plays host to a huge funds industry, with the value of Irish-domiciled funds put at €1.3 trillion. The GFCI survey, which is produced by London-based think tank Z/Yen Group, rates financial centres on the basis of metrics such as business environment, financial sector development, infrastructure, human capital and reputation. New York, London, Hong Kong and Singapore remain the four leading global financial centres, with all four gaining points and retaining their respective ranks.
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RYANAIR SHOULD BE MADE TO SELL AER LINGUS STAKE, SAYS GOVERNMENT - The Government has urged the UK's Competition and Markets Authority (CMA) to force Ryanair to sell most of its stake in Aer Lingus. It is the latest twist in a more than three-month saga where IAG has been trying to persuade the Government that it should sell its 25.1% shareholding in Aer Lingus and approve the takeover of the airline, writes the Irish Independent. In a letter from a senior Department of Transport civil servant, Ethna Brogan, to the CMA, she said the watchdog should not be swayed from its previously stated position that Ryanair must be forced to cut its Aer Lingus stake from nearly 30% to no more than 5%. The CMA's predecessor, the Competition Commission, ordered Ryanair in 2013 to reduce its Aer Lingus holding, citing competition concerns. The watchdog also claimed that because Ryanair was such a big shareholder in Aer Lingus, it was likely to deter other airlines from making a bid to buy Aer Lingus. Ryanair has claimed the fact that IAG has now made an approach to buy Aer Lingus negates a fundamental plank of the CMA decision to make it cut its stake in its smaller rival. But the Department of Transport said it agrees with the original finding and that it should still stand. "The department considers that the IAG proposal confirms that merger and acquisition opportunities exist for Aer Lingus but that it also confirms that interest in acquiring Aer Lingus is contingent on Ryanair exiting Aer Lingus' share register," Ms Brogan said in her letter to the CMA.
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STOBART AIR COMING BACK TO SHANNON AIRPORT - Stobart Air, which operates the Aer Lingus Regional brand, is set to resume services from Shannon Airport from June. The airline pulled out of Shannon just 11 weeks ago saying the airport "didn’t fit in with its strategic plan", says the Irish Examiner. But Stobart Air has now said that while its decision to close its Shannon base last January was difficult but necessary, the move allowed them look at Shannon from a different perspective. While an official announcement is expected tomorrow it is known the company will recommence services on one of the three routes it operated up to January 5. The link between Shannon and Birmingham will resume on June 18 and will operate six times a week. Stobart Air says it believes that passenger demand is there and that, along with Shannon and Birmingham Airports, it will "make a major push to mobilise a positive passenger response on this new route".
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FEARS OF STUBBORN EURO ZONE JOBLESS DEFY DRAGHI'S OPTIMISM OVER RECOVERY - One in 10 workers in the euro zone will remain unemployed even after the full effects of the European Central Bank’s bond-buying programme have rippled through the economy, according to ECB projections, highlighting the deep scars left by the bloc’s financial and debt crises. ECB president Mario Draghi told the EU parliament on Monday that “growth is gaining momentum” in the euro zone. “The easing of lending conditions is progressing hand-in-hand with a resurgent demand for credit to finance business investment,” Mr Draghi said. “In the longer-term perspective, this will increase potential output.” But there are question marks over how much the recovery will benefit those worst affected by the years of recession and near-stagnation, writes the Financial Times. Unemployment in the currency area remains at 11.2% and few economists think growth will pick up at a fast enough pace for firms to take on many more workers. The ECB’s latest forecasts suggest the currency area’s crisis has been so severe that the jobless rate will stay close to double figures even after the €1.1 trillion quantitative easing programme is fully implemented. By contrast, the jobless rate in the US stood at 5.5% in February and is set to go below 5% later this year.
