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Enterprise Ireland has beefed up the number of international trade missions for the remainder of its year in the wake of Brexit, with 26 ministerial-led trips set to take place.

The full programme of events – 68 in total – includes ministerial-led trade missions, inward buyer visits, market study visits, international trade fairs, embassy events and knowledge seminars. They are all aimed at linking Irish companies with international buyers.
In total there will be 36 ministerial-led trade missions and associated activities this year – almost double the number in 2015.

Julie Sinnamon, Enterprise Ireland chief executive, said a key element of Enterprise Ireland’s plan to support Irish exporters is around market expansion and diversification.
“We recently announced record export results of €20.6bn which demonstrates that our strategy of helping clients expand into new markets in recent years is working,” Ms Sinnamon said.

“We will now intensify that approach in order to increase the opportunities for Irish exporters to scale their businesses into other global markets continuing to reduce our overall dependence on the UK market.”
Ms Sinnamon said the agency’s focusing on opportunities in Northern Europe, the US, Canada and other high-growth markets including the Middle East and Asia Pacific.

Missions include a life sciences trade visit to the US, a financial services trade mission to China, a software and education trade mission to India, and a food-manufacturing mission to the United Arab Emirates and Iran.
Jobs Minister Mary Mitchell O’Connor said delivering a programme of ministerial-led trade missions is a key commitment in the Government’s Action Plan for Jobs.

“This new programme of trade missions and events is a key element of our plan to support Irish companies from counties around Ireland to grow their businesses internationally to generate more exports and create jobs in Ireland,” she said.
Foreign Affairs Minister Charlie Flanagan said a key element of the Department’s strategy is to use embassies, consulates and other missions to maximise opportunities for Irish companies.

“As announced earlier this week after the Export Trade Council meeting, I have recently created new commercial attaché posts in Argentina, Brazil, Mexico, Indonesia and Romania. This is a key part of my Department’s new economic diplomacy strategy,” the Minister said.

Article Source: http://tinyurl.com/kbwqb42

Britain’s economy appears to be shrinking at the fastest rate since the financial crisis in the wake of last month’s Brexit vote, according to a business activity index that posted the biggest drop in its 20-year history.

An early edition of Markit’s purchasing managers’ indices showed the services sector – one of the few drivers of British economic growth – has been hit especially hard by the vote to leave the European Union, with orders plunging and confidence crumbling.
The PMI for the services sector fell to 47.4 in July from 52.3 in June, the steepest drop since records began in 1996 and the worst reading since March 2009, around the low point of the global economic recession. Economists polled by Reuters had expected a much smaller fall to 49.2.

The evidence of a sharp drop in business activity across a broad swathe of Britain’s economy may alarm the Bank of England, which is trying to decide how aggressively it needs to act to cushion the shock of the referendum vote.
Following the report, sterling fell by a cent against the dollar to the day’s low and British government bond prices rose.

“This is the first major survey showing the pace of activity through the economy and it is soft. Taken literally it would imply a period of contraction in the economy,” Investec analyst Philip Shaw said.
“It might be a little bit early to draw firm conclusions but it certainly looks as though the second half of the year will be weaker than the first.”

The BoE’s own research, published on Wednesday along with some other surveys, had pointed to a big rise in uncertainty but a relatively limited initial drop in activity.
Markit’s figures are one-off ‘flash’ versions of its monthly surveys. They are based on 85pc of the normal number of responses, collected from July 12 to 21 to capture sentiment after the Brexit vote. Markit will update the figures early next month.

‘DRAMATIC DETERIORATION’
Markit said that if the PMIs stayed at these levels, they would be consistent with the economy shrinking at a quarterly pace of 0.4pc, a rate of decline not seen since the 2008-09 recession.

“July saw a dramatic deterioration in the economy,” said Chris Williamson, Markit’s chief economist.
“The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to Brexit.”

The manufacturing PMI fell to 49.1 from 52.1 in June, the lowest since February 2013.
The composite index, which combines services and manufacturing, slumped to 47.7 from 52.4, the weakest reading since April 2009.

There were few bright spots. Sterling’s plunge to its lowest level against the dollar since the mid-1980s after the referendum helped manufacturing exports expand at the fastest pace in almost two years.
But the pound’s fall also pushed up the costs faced by British manufacturers for energy and raw material at the fastest pace in five years.

BoE Governor Mark Carney has warned that the central bank would probably face a trade-off between slower economic growth and higher inflation if Britain voted to leave the EU.

Business expectations for the next year among services companies cratered to the lowest level since January 2009.
The new orders index for services firms fell by the largest amount on record, and there was the first decline, albeit slight, in services employment since December 2012.

Williamson said there was some improvement in the data after the appointment of Theresa May as prime minister last week, but whether the PMIs will improve next month remains to be seen.

“With policymakers waiting to see hard data on the state of the economy before considering more stimulus, the slump in the PMI will provide a powerful argument for swift action,” Williamson said.
A Reuters poll earlier this week predicted Britain’s economy would slide into recession in the coming year, forcing the BoE to cut interest rates next month and start purchasing bonds

Article Source: http://tinyurl.com/kbwqb42

The Central Bank is to put its headquarters on Dame Street and two other premises on Dublin’s College Green on the market in the coming months, with sources estimating they could fetch upwards of €60m.

The bank expects to be able to start moving into its new purpose-built office accommodation on North Wall Quay by the end of this year.
The iconic headquarters on Dame Street, which was completed in 1978 and officially opened in December 1979, is expected to be put up for sale, along with 6-8 College Green and 9 College Green, in the autumn. Lisney estate agents will be managing the sales.

The main Central Bank building, designed by architect Sam Stephenson, could command a price in excess of €40m should it be sold separately.
Together with the commercial buildings at numbers 9 and 6 to 8 College Green, the entire lot is expected to command a price in excess of €60m.

A lease the bank holds on premises in nearby Iveagh Court expires in May next year and it is not expected that this will be extended.
The anticipated sale price falls considerably short of the €140m development cost of the new headquarters.

It is understood that the three premises will be offered to the market in one or more lots.
The Irish Independent understands that while the pricing for the properties has not yet been determined, this is expected to be completed in the coming weeks with active marketing getting underway after that.

The upcoming sale of the Central Bank’s existing headquarters is not expected to have any impact on the timing of the movement of its employees to its new headquarters in the docklands.
One industry source said typically it was preferable to show buildings to prospective purchasers while they were still occupied as opposed to lying vacant.

Staff members have also been informed via an internal message that the ‘golden ball’ artwork outside the Dame Street building, the Crann an Óir, will remain on Dame Street, and will not be transported to the new North Wall Quay site.
The decision was made after discussion with “local stakeholders and the wider arts and architectural community”, staff were informed.

The bank said there was a “strong consensus” that the artwork is an “integral part of the fabric of the plaza and an important site-specific public art installation”.
“The widespread view is that Dame Street is its rightful home,” the bank told staff.

The Crann an Óir (tree of gold) sculpture is also used as the Central Bank’s official logo. The bank said that this will continue.

Article Source: http://tinyurl.com/kbwqb42

Ireland’s distorted gross domestic product (GDP) figures has made them less useful to potential investors into Irish debt, the National Treasury Management Agency (NTMA) has said.

Figures released from the Central Statistics Office last week pointed to an enormous 26pc increase in Ireland’s GDP. Ireland’s growth was distorted by tax inversion deals by pharmaceutical companies and aircraft leasing companies.
As a result debt investors now must look at other aspects of the Irish economy to determine its attractiveness, NTMA chief executive Conor O’Kelly has said.

“There was the market impact of the surprise of the statistics – we feeded a lot of calls from investors. There was a lot of explaining to do.
“Investors we’ve been speaking are looking to other factors of our economic health for our ability to repay as opposed to GPD to debt ratio,” Mr O’Kelly said.

The NTMA chief was speaking at the Public Accounts Committee this morning where he said Ireland remains very much an “indebted nation”.
Mr O’Kelly fielded questions from chairman Sean Fleming around the country’s implicit interest rate. Mr Fleming said he was “shocked” to learn that countries such as Spain and Italy were paying lower interest rates than Ireland on its debt.

Ireland currently pays 3.3pc on its national debt as opposed to the aforementioned two that pay 3.2pc. The chairman also pointed out that one tenth of one percent would represent a saving of €200m to the State.

Article Source: http://tinyurl.com/kbwqb42

The National Competitiveness Council (NCC) has called for policies to be introduced that will ensure long-term fiscal sustainability in its annual report published on Thursday.

The NCC says that the Irish economy faces a number of external threats, and that the Government need to implement measures that can buffer the domestic economy against potential external shocks.
Regarding Britain’s decision to leave the EU, the annual NCC benchmark report notes the extensive challenges now facing Ireland: “The realignment of the deep inter-linkages between Ireland and the UK… brings into sharp focus the need for Irish based enterprise to step up their own productivity and innovation performance to compete in international markets and for Ireland’s policy system to be agile in responding to the competitiveness challenges and opportunities of the UK outside the EU.”

The Council calls for an increase in investment that takes into account the actual condition of the public finances. The report emphasises the need to increase spending on the country’s infrastructure in the areas of roads, energy, water and broadband services.
Significantly, the report says the need to broaden the country’s export base has never been “more important in the context of Brexit and enhancing the competitiveness of our key clusters is critical, together with an ambitious external trade agenda.”

The condition of banks’ balance sheets is also raised, with the report expressing concern that “an overhang” of non-performing loans was hindering lending to firms. Concern was also expressed about the availability of alternative sources of finance for companies.
The need to develop talent in the areas of engineering and mathematics was also highlighted while the NCC stated that enterprises needed to engage with apprentice schemes in order to improve productivity and competitiveness.

The number of women in the workforce should also be increased by the provision of improved childcare services and by cutting the cost of returning to work.
The report stated that the improvement in Ireland’s competitiveness in the years 2011-2015 was a major reason behind the country’s economic revival.

The NCC noted that Ireland moved up nine places in the IMD World Competitiveness rankings in 2016 from 16th to 7th.
The report also calls for a concerted effort to meet Ireland’s commitments to reducing the carbon output in 2020 in accordance with its international obligations.

Article Source: http://tinyurl.com/kbwqb42

Sinn Féin has accused Housing Minister Simon Coveney of “playing around with figures” in his Action Plan for Housing and Homelessness.

The party’s housing spokesman Eoin Ó Broin said it was “certainly better” than a plan to provide social housing by former minister Alan Kelly.
But he claimed: “The minister’s playing around with figures. It’s not a €2.2bn increase. It’s probably more like €1.4bn over the course… and while it will result in an increase in social housing, it will be nowhere near enough to tackle the level of crisis that’s out there.”

Mr Coveney disputed Mr Ó Broin’s analysis, saying that the previous proposal had capital spending plans of €3.1bn and his will see funding of €5.3bn, an extra €2.2bn.
Emergency

Mr O Broin said Mr Coveney would have his “full congratulations” if plans to keep homeless families out of emergency accommodation were successful. The plan commits to ensuring that by mid-2017 hotels are only used in “limited circumstances” for such families.
Read More: Coveney stakes reputation on fixing the housing crisis

Labour’s Jan O’Sullivan welcomed the plan, but warned there would be “real challenges” in getting the funding spent. She said: “Any examination of the snail’s pace at which money allocated to local authorities for social housing gets turned into actual houses will show the problem is far from as simple as fast-tracking the planning process.”
People Before Profit’s Richard Boyd Barrett said the plan to provide 47,000 social housing units was “derisory” and “will barely, if at all, keep pace with the new applicants coming on to the housing list”. He added: “My prediction is that the housing lists will be longer at the end of the period of this plan.”

Article Source: http://tinyurl.com/kbwqb42

Bank of Ireland is to cut 20pc of its branch network in Northern Ireland reducing its number of outlets in the North to 28 from 36.

The bank said its branch network in the Republic won’t be affected by the cuts.
It is understood 54 roles have been affected by the cuts, however the bank said those employed at the branches can transfer, redeploy or relocate to other roles within the bank or apply for voluntary redundancy.

Bank of Ireland said the volume of business in the branches is insufficient to sustain them. The branches account for around 6pc of the bank’s business in the North.
The bank’s Northern Ireland consumer and small business regional director Sean Sheehan said the decision was not taken lightly.

“A key priority will be to ensure customers understand the alternative arrangements available, and to maintain continuity of customer service.
“We are responding to the continuing shift in customer behaviour towards increased use of digital and online channels, and the changes announced today will put us in the best position to continue to support our customers’ changing needs and grow our business in the future,” he said.

Financial Services Union general secretary Larry Broderick challenged the bank’s plan to close the branches, describing it as “a kick in the teeth” for both customers and staff located in Northern Ireland.

Article Source: http://tinyurl.com/kbwqb42

Our contribution to the EU budget will mean a big increase as a result of the controversial higher Gross Domestic Product figures that emerged recently, Minister for Finance Michael Noonan has confirmed.

Minister Noonan confirmed that the figure would be higher in a reply to Fianna Fáil’s Finance spokesman Michael McGrath in the Dail.
However, his reply did not specify exactly how much the increase would be.

He said that under current estimates the figure would be €380m but when ‘mitigating’ factors are included it could be lower at €280m.
“We currently estimate the impact of the Central Statistics Office revision on our EU Budget contribution for 2017 at c. €380m,” Mr Noonan said.

However, other mitigating factors mean the overall increase in the EU budget contribution is now estimated to be in the order of €280m when compared to the forecast underlying the Summer Economic Statement.
“It must be emphasised that the final impact depends on a number of variables including the size of the overall EU budget for 2017 (which is not due to be agreed until November 2016), GNI movements in other EU Member States and other EU budget developments.”

Last week the Central Statistics Office said that Ireland’s GDP growth was up over 26pc last year but the figures were inflated by contributions from activity by multinationals that did not reflect underlying growth in the Irish economy.
Read more: Could leprechaun economists yet precipitate an Irexit? Or predict crocks of gold for all?

The figures were distorted by a number of factors including tax inversion deals and the purchase of aircraft by leasing companies and were dubbed ‘leprechaun economics’ by Nobel economist Paul Krugman.
Read more: CSO won’t change how it makes up economic growth

The findings suggested Ireland’s economy in 2015 grew at the fastest pace on record for any country in the OECD.
But the surge is mostly explained by the open Irish economy and its use as a base for international companies.

Read more: Leprechauns, planes, and even Soviet Russia: the reaction
The calculations comply with rules set out by the European statistical unit Eurostat.

Article Source: http://tinyurl.com/kbwqb42

The UK’s vote to pull out of the European Union will result in a “marked slowdown” in Irish economic growth, Deutsche Bank has warned.

And it said there were “limits” to Dublin’s capacity to take on financial services firms from London that may be looking to shift some operations in the wake of the Brexit vote.
In a note to investors, Deutsche chief economist Mark Wall also warned that the referendum result could affect Ireland’s housing sector, claiming higher uncertainty and tighter conditions would likely weaken housing demand.

“There are analysts predicting outright recession in the UK. Ireland is exposed to these risks,” Deutsche said. “We expect Irish GDP growth to slow from 5pc this year to 2.9pc in 2017. This is a marked slowdown.”
Deutsche also referred to the revision of Ireland’s GDP rate last year from 7.8pc to an “eye catching” 26.3pc.

The surge was driven by the activities of Ireland’s multinational sector, and has been dismissed by economists as a “meaningless” gauge of what is happening in the Irish economy.
It argues that a truer reflection are tax revenues, retail sales and employment growth.

Mr Wall said that one could be forgiven for thinking that Ireland could “easily shrug off its exposure to the UK” by looking at the GDP data. “This is too optimistic a point of view, in our opinion,” Deutsche said.
Mr Wall described the GDP surge as “growth by acquisition”, and a kind of growth more commonly associated with companies rather than sovereigns.

“It points to significant weakness with GDP as a statistic to broadly represent an economy’s actual income on the one hand and as an official denominator within other policy relevant statistics on the other, like the fiscal deficit and public debt to GDP ratios,” he said.
“The problem cannot go unaddressed by the Commission and Eurostat.”

Deustche said a range of indicators suggest the domestic economy probably expanded by between 5pc and 6pc last year.
It warned that the Irish economy is exposed to Brexit through various channels, pointing out that about 40pc of exports from domestic firms go to the UK. These firms are responsible for more than 85pc of employment, the bank said.

“To the extent that a large negative shock to UK domestic demand hurts the Irish indigenous firms the most, the Irish employment base is significantly more exposed than the 14pc of exports implies.”
Brexit could threaten Ireland’s housing recovery.

The bank said housing demand could weaken further if Brexit threatens jobs, given that so many small firms in Ireland export to the UK. “Banks are likely to be even more cautious with their provision of mortgage finance and if incomes are under threat, the still elevated level of debt could suppress demand,” Mr Wall said. Dublin’s capacity to take advantage of the dislocation from London of financial services firms has “limits”.
Mr Wall said that if the common travel area between Ireland and the UK can be retained, then Ireland will be an appealing destination for firms relocating elements of their business from London. But infrastructural gaps could hinder Dublin’s ability to benefit, Deutsche suggests.

“A decision to relocate will depend on a range of factors. Commercially, the fit requires a range of other business services being available, from sufficiently well developed global accounting, tax, legal and business services industries.

“Non-commercially, it depends on factors such as availability of housing, school places, etc. Dublin’s non-commercial capacity and infrastructure is suffering from under-investment after the financial crisis.”
Deutsche also warned that political instability at home could also pose problems. And it said that an adverse finding from Europe in the Apple case “could affect attractiveness”.

Article Source: http://tinyurl.com/kbwqb42

Irish research and development is significantly below European targets and is being dominated by multinationals, according to a new report from the European Commission.

Two thirds of all business-related research and development in Ireland is being done by multinational companies, says the Commission’s Research and Innovation Observatory.
Citing figures from 2014, the report says that Irish R&D “intensity” — expenditure on R&D divided by sales — is 1.52pc, below official EU targets of 2pc.

The report also says that business expenditure here stands at €2.1bn.

Article Source: http://tinyurl.com/kbwqb42