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National broadcaster RTE made an overall loss last year of €2.8m, reversing a small surplus in 2014.

In a statement RTE said cost pressures, including the negative impact of currency swings were behind the loss. Since the crash RTE has been forced to cope with dramatically reduced resources.
State funding was cut by €5m in Budget 2014.

The figures are contained in RTÉ’s Annual Report and Group Consolidated Financial Statements for the Year Ended 31st December 2015, which were signed off by the Government today.
Commercial revenues were up in 2015 by 4pc. The accounts show the majority of RTE’s income was from license fees, which added up to €178.9m compared to commercial income of €155.4m. On the commercial side, TV advertising added €83m to RTE’s coffers, compared to €19m from radio and €7.5m from digital advertising.

Reacting to the news, Kevin Bakhurst, deputy director-general RTÉ and managing director of RTÉ News & Current Affairs, said: “Over the past five years we have made huge progress in reshaping RTÉ for the future. Costs remained substantially down on 2008 levels and successive independent reviews find RTÉ’s operations to be efficient. Yet, while we managed to deliver some increases in commercial revenue, overall the public funding base remained static and is, in real terms, declining. Evasion levels (14%) and the steady increase in homes without a television set are creating a critical environment for RTÉ and its ability to support the wider cultural sector in Ireland. The audience remains at the centre of all that we do; RTÉ will continue in its efforts to manage costs and grow revenues, to deliver for audiences with our programming and services, and continue innovating with new digital products and services.

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

New Ireland Assurance has been fined €650,000 by the Central Bank for breaches of the Consumer Protection Code.

The Central Bank said this morning that the breaches relate to the provision of incomplete information to consumers regarding New Ireland’s investment products, including the performance of those products.
The Central Bank also said that there were “systems and controls failures associated with the provision of information to consumers”.

The breaches occurred between July 1, 2012 and November 30, 2014. The Central Bank said the firm had accepted the breaches.
The Central Bank’s director of enforcement, Derville Rowland, said regulated entities must have adequate systems and controls in place to ensure the provision of information.

“The Consumer Protection Code 2012 sets out the minimum standards the Central Bank expects regulated entities to comply with in their dealings with consumers. Chapter 6 Provision 6.16 of the 2012 Code requires regulated entities to provide certain information to consumers on at least an annual basis to enable them to assess the performance of their investment products over the previous year,” Ms Rowland said.
“It is of paramount importance that consumers receive such information in a complete and transparent manner, particularly in respect of longer term investment products, to enable them to analyse the performance and value of their investments and to assess whether those investments are on track to meet their personal financial goals and objectives.

“As the Firm was not providing all such information to consumers the Central Bank brought this enforcement action to protect consumers’ interests.
“In order to ensure that consumers receive complete information in respect of their investment products in a timely fashion, regulated entities must have adequate systems and controls in place regarding the provision of such information.”

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

Irish gold mining firm Conroy Gold and Natural Resources has found four new gold zones on its Glenish target in Monaghan.

The discovery was made in a 150 metre-wide structural corridor in the western part of the Glenish gold target.
It included intersections of 2.25 metres grading 2.65 g/t gold, at a depth of 18 metres, 2 metres grading 1.59 g/t gold at a depth of 27.75 metres; 2.75 metres grading 1.43 g/t gold at a depth of 36 metres and 3 metres grading 1.76 g/t gold at a depth of 64.25 metres.

The Glenish gold target spans 147 hectares.
The gold mineralisation in the drilling area remains open in all directions.

Mining activity in Ireland requires a licence from the State, but “recreational” panning is allowed.
That’s defined as activity that uses only hand-held, non-motorised equipment. The Department of Communications, Energy and National Resources asks panners to seek permission from various parties, including relevant landowners and the National Parks and Wildlife Service, to ensure the site they wish to use isn’t environmentally sensitive.

Precious metals in the ground are the property of the State but panners are allowed to keep small quantities “as a souvenir”. Any finds which return more than 20 gold flakes or individual nuggets that weigh more than two grammes are to be notified to the department.
But selling the gold is a no-no. That’s defined by law as ‘working’ of minerals – which requires permission from the Government.

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

Deutsche Bank has cast doubts on the ability of Ireland to win increased foreign direct investment in the wake of Brexit.

The global finance house also warned of a “marked slowdown” in Irish economic growth.
Deutsche said Dublin’s capacity to take advantage of the dislocation from London of financial services firms has “limits”.

In a note to investors, Deutsche’s chief economist Mark 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.

“Dublin’s capacity to take significant advantage of the dislocation of financial services from London has limits, in our view,” the bank said.
“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 said the Irish economy is exposed to a Brexit through various channels.

“About 40pc of exports from indigenous Irish firms go to the UK,” the bank said.
“These firms are responsible for over 85pc of employment.”

There could also be an impact on the housing market, Deutsche said, with higher uncertainty and tighter conditions likely to 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.”

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

Asian shares extended gains to nine-month highs on Friday, on track for a solid weekly rise, as better-than-expected economic data from China lifted risk sentiment that was already buoyant after record highs on Wall Street.

But European stock markets were expected to dip lower at the open, while travel stocks could come under pressure after an attacker killed 80 people in the French Riviera city of Nice late on Thursday.
Financial bookmakers at IG and CMC Markets expected Britain’s FTSE 100 and Germany’s DAX to open 0.1pc lower, while France’s CAC was seen down 0.4pc.

“European markets look set to open lower on Friday, coming off multi-month highs in the wake of the horrific attack last night during Bastille Day celebrations in Nice, France,” Jasper Lawler, market analyst at CMC Markets UK, said in a note.
An attacker killed 80 people and injured scores when he drove a truck at high speed into a crowd watching a fireworks display on Thursday night.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4pc, off intraday session highs it hadn’t reached since October, but it was still on track to log a robust weekly gain of more than 4pc for the week.
On Thursday, both the Dow Jones industrial average and the S&P 500 closed at record highs.

China’s economy grew 6.7pc in the second quarter from a year earlier, steady from the first quarter and slightly better than expected as the government stepped up efforts to stabilize growth in the economy.
Industrial output and retail sales also beat forecasts, which helped alleviate fears of slowing momentum, though fixed-asset investment growth slipped and missed market expectations.

“The data showed the signs of stabilisation, which is very encouraging,” said Julian Wang, economist for Greater China at HSBC.
“However, public sector investment and housing market are slowing down. So the challenges still loom quite large in the second half of the year.”

China stocks wobbled, with the CSI300 index of the largest listed companies in Shanghai and Shenzhen, as well as the Shanghai Composite Index both down 0.1pc in choppy trading.
Japan’s Nikkei added 0.7pc, gaining more than 9pc for the week with the tailwind from a weaker yen after Japanese Prime Minister Shinzo Abe called for a fresh round of fiscal stimulus following last weekend’s victory for his ruling coalition.

Part of the yen’s recent weakness was also due to some investors’ hopes that former US Federal Reserve chair Ben Bernanke’s meetings with Japanese leaders this week would herald the adoption of further stimulus policy, to help meet the goals of the ambitious “Abenomics” reform plan.
“The amount of outflows from Japan year to date versus the amount of inflows in the last two weeks, it’s been a significant reversal,” said Logan Best, vice president of securities trading at INTL FCStone Financial in Orlando.

“We’re talking about billions of dollars being put back to work, in the past week. I’m seeing significant buyers every day,” he said. “There’s definitely some hope rekindled in Abenomics.”
News of the attack in France had lifted the safe-haven yen in early trading.

“Initially, some US short-term guys used it as an excuse to test the downside and sell ahead of the long weekend in Tokyo,” said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo, referring to Monday’s public holiday for which Japanese markets will close.

The dollar added 0.4pc to 105.70 yen, having dipped as low as 105.05 earlier in the session. It subsequently recovered to rise to a three-week high of 106.32 yen, and was on track to gain more than 5pc for the week against its Japanese counterpart.
The euro was up 0.2pc at 117.59 yen, up over 5pc for the week.

The pound was up 0.4pc at $1.3395, on track for a weekly gain of 3.5pc, after earlier rising as high as $1.3481. On Thursday, the Bank of England surprised many investors by leaving interest rates unchanged instead of cutting to cushion the economic impact of Britain’s vote last month to leave the European Union.

Oil prices gave up some of their overnight gains in early trading, after rising 2pc on Thursday as traders covered short positions after data showing weak US fuel demand. The bright signs of stabilization in the Chinese economic data could not offset concerns about a global supply glut.

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

Theresa May’s new Government has indicated it is prepared to spend in order to stabilise the economy, as it set out a blueprint for post-Brexit Britain.

In a major shift away from the era of austerity imposed by George Osborne, the former chancellor, his successor Philip Hammond suggested that his Treasury will borrow in order to invest in British infrastructure.
Mr Hammond said Mrs May’s Government would “borrow and invest wisely” after the “shock” to the economy caused by the Brexit vote. His comments were welcomed by business groups, which urged the Chancellor to press ahead with investments.

The Prime Minister’s new team began to plan for Britain’s departure from the EU. David Davis, the new Secretary of State for Exiting the European Union, suggested Britain would demand full control of its borders but would want to retain access to the single market.
Mr Davis believes Britain could start to feel the “economic benefit” of Brexit before the end of 2018.

Mr Hammond said yesterday Britain would come out the single market as part of its decision to leave the EU, but would negotiate access to the bloc.
“We will come out of the single market as a result of our decision to leave the European Union,” Theresa May’s new Chancellor said on radio.

“The question is how we negotiate with the European Union, not from the point of view of being members of it but from the point of view of being close neighbours and trade partners of it.”
He added: “I would like to see us negotiating access to the single market for Britain’s businesses, so we can go on selling our goods and services into the European Union market and indeed enjoying the benefits of consuming European Union goods and services here as we do now.”

The blueprint for how to leave the EU was set out by Mr Davis in an article published earlier this week before his appointment to the Cabinet, but is expected to form the basis of his plans in the coming weeks.
Mr Hammond’s comments appeared to signal a significant change in the Government’s economic policy in the coming months.

Speaking on ITV News, the new Chancellor said: “Borrowing when the cost of money is cheap has some great attractions, but this country is already highly indebted and we need to be very careful about the signal we send to markets about our intentions. So it’s about getting the balance right and making sure that we borrow and invest wisely where we can make big impacts on Britain’s productivity.”
Mr Hammond also spoke about “new parameters” to replace the strict timetable for reducing borrowing that was the main focus of Mr Osborne’s time in the Treasury.

He said: “What we did in 2010 was exactly the right approach for the challenges that faced the British economy then. Now we are entering a new phase in the story of the British economy with the decision to leave the European Union. Our economy will change as we go forward to the future and will require a different set of parameters.”
In a boost to middle earners, Mr Hammond made clear that he hopes to avoid tax rises.

Adam Marshall, acting director general of the British Chambers of Commerce, said: “We’ve been calling for a long time for an infrastructure investment boost and for the use of the government’s fiscal credibility to make that investment boost while the cost of borrowing is low.
Mr Davis’s “Brexit blueprint” states that trade talks with other countries should begin immediately and that Article 50 – which will trigger Britain’s formal break from the EU – should be invoked by the end of the year, despite Mrs May previously saying that the process should not begin until 2017.

The Government would have first to consult with administrations in Scotland, Wales and Northern Ireland and other business groups and unions.

Mr Davis set out his wish for the UK’s EU relationship to be based on the current draft deal between the EU and Canada.
This would give the UK access to the single market without having to accept uncontrolled numbers of immigrants.

Mr Davis said he had ruled out other models for Britain’s future relationship with the EU, notably the Swiss agreement because that also allowed free movement of people.

He said that Britain should seek new free-trade agreements with “the biggest prospective markets as fast as possible”, focusing initially on China, the US, Canada and Hong Kong.
Deals with other countries such as Australia, Brazil, India, South Korea, Japan, Mexico and South Africa would follow.

He also said the UK should “accelerate” the agreement of the controversial Trans-Atlantic Trade and Investment Partnership deal with the US.

He added: “There is no reason why many of those cannot be achieved within two years.”
Mr Davis suggested that Britain should start to wean itself off grants from Brussels well before the UK finally severs its links to the EU.

Sam Alderson, an economist at the Centre for Economics and Business Research said yesterday that the Government’s decision to abandon a target of balancing the books by 2020 was the right decision.

“The correct tax cuts, such as a drop in corporation tax, and commitments to infrastructure spending over the coming years will provide a much more considerable boost to the attractiveness of the UK economy than striving to balance the books as soon as possible,” he said.

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

The hit to Bank of Ireland’s pension scheme from Brexit will dent the bank’s capital, making a dividend pay-out to shareholders less likely, an analyst has warned.

The State’s 14pc stake makes it the bank’s biggest shareholder. In a trading update released to shareholders, BoI said the Brexit decision has resulted in the bank revising its standard defined benefit pension deficit to around €1.2bn at the end of June, a significant deviation from December, when it stood at €740m.
Davy analyst Emer Lang said the increase in the deficit could negatively impact shareholders’ dividend prospects.

Earlier in the year Bank of Ireland signalled its intention to pay a dividend in 2017.
But Ms Lang believes the increase in Bank of Ireland’s pension deficit could put back the payment of the dividend again. “Under the fully-loaded capital rules a deficit is directly deducted from capital so that’s I suppose where investors are looking at it.

“It might have an implication for capital then that has potentially an implication for when they might start repaying dividends,” Ms Lang told the Irish Independent.
Bank of Ireland said yesterday that Britain’s decision to leave the EU impacted on the group’s pension scheme.

The bank said the Brexit vote has resulted in it revising its standard defined benefit pension deficit to around €1.2bn at the end of June, a significant deviation from December, when it stood at €740m.
The bank said the outcome of the referendum has also impacted foreign exchange rates and interest rates including AA corporate bond yields, which are used to discount the liabilities in its pension schemes.

The effect Brexit will have on Irish companies’ pension schemes is unclear, but Ms Lang said any firm that uses AA corporate bond yields as a discount rate will be affected.
“It’s market volatility. It’s a point in time thing and pensions are very long-term. “In a year’s time it could look very different. It’s mark to market, which is what they’re highlighting. So these things change on a daily basis,” she said.

The Financial Services Union, formerly the Irish Banking Officials Association, recently concluded two deals with Bank of Ireland on pensions.
As a result union chief Larry Broderick remains relaxed around the pensions situation.

“The bank have now reassured us there will be time to time situations developing where the pension deficit will go up or go down and unless something is on a long-term basis that requires a further fundamental review we don’t expect the bank to engage with us about changing that arrangement.
“We have made changes in the pension scheme and we would be very strongly opposed to any attempt to change it, particularly on the back of a short-term impact of Brexit,” Mr Broderick told the Irish Independent.

It is understood that around 12,000 people are members of Bank of Ireland pension schemes, with around 8,000 active members.
Meanwhile the Pensions Authority refused to be drawn on particular companies but expressed concern about Irish schemes.

“On a general point, recent falls in interest rates and falls in share prices are a concern for pension scheme trustees, but the impact on scheme funding and solvency will not become clear until the end of the year, as schemes file their annual returns,” a spokesman said.

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

The ISEQ Overall index of Irish shares fell by 10.6pc in the second quarter of this year and is down 16.9pc overall for the year to date.

The ISEQ Overall index fell by 10.6pc in the second quarter of this year and is down 16.9pc overall for the year to date.
In a statement, the ISE said the figures reflected continued uncertainty in global markets and the impact of the UK’s decision to leave the EU.

The half year saw most global indices deliver negative returns, including the FTSE 250 (-6.7pc); the CAC 40 in France (-8.6pc) and Tokyo’s Nikkei 225, which was down by 18.2pc.
Turnover in Irish Government bond saw a drop of 23.2pc to at €123bn.

The statistics published show that the ISE now has over 35,000 securities. The securities are comprised of over 4,000 issuers in 80 countries on its markets at the end of June 2016.
The number of debt listings grew by 2.6pc in Q2 to 27,991.

A number of multinational firms listed new debt instruments on the exchange in Q2. They include Entertainment One, Bright Food Singapore Holdings, Banco de Sabadell, Coöperatieve Rabobank, Sacyr Liberty Mutual Group.
In addition, Draper Esprit plc, the venture capital investor, raised €102m from its Initial Public Offering (IPO) in June.

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

Members of the Bank’s Monetary Policy Committee voted 8-1 to hold rates, but minutes of the meeting showed most expect action to be taken next month.

One member – Gertjan Vlieghe – voted for an immediate cut to 0.25% amid signs that the EU referendum decision was already hitting parts of the economy, with growth set to come under further pressure.
But the minutes of the MPC meeting showed the economy had been resilient in the run-up to the vote, with the Bank now expecting second-quarter growth to pick up to around 0.5%, from 0.4% in the previous three months.

Most policymakers wanted to wait until the Bank’s quarterly forecasts on August 4 before taking further action as banks and financial markets have also held up surprisingly well since the vote.
Consumers may yet be in line for a further reduction in borrowing costs, though, with the minutes confirming “most members of the Committee expected monetary policy to be loosened in August”.

Bank governor Mark Carney has already said that, in his personal view, a rate cut was likely over the summer and has hinted at the possibility of firing up the printing presses to deliver more quantitative easing (QE) to shore up the economy.
All nine members of the MPC voted to keep QE on hold at £375 billion this month, but the minutes showed rate-setters are looking at “various possible packages of measures”.

“The exact extent of any additional stimulus would be based on the Committee’s updated forecast,” the Bank said.
The decision to hold rates comes despite intense speculation that the Bank would move to slash rates this month, with financial markets having priced in a cut to 0.25%.

Sterling jumped one cent against the dollar, rising from 1.32 to 1.33 dollars, almost 1%, after the no change vote.
The FTSE 100 Index tailed off slightly following the MPC announcement, edging down 5.9 points to 6664.3.

Economist Paul Diggle, of Aberdeen Asset Management, said: “The Bank of England has decided that patience is a virtue.
“There’s going to be a bit of disappointment in financial markets. They had taken Carney’s earlier comments about easier monetary policy to heart and forgot his reputation for changing his mind.

“But the next meeting is only three weeks away, and by then Carney and his colleagues will have a few extra post-referendum data points to digest as well as a new set of forecasts. The market should get its way then, with an interest rate cut likely and renewed quantitative easing possible.”
The Bank said it had taken some “reassurance” from signs that financial markets were weathering the Brexit vote.

While the pound had plunged in value, hitting 31-year lows against the US dollar last week, equities had already surged past levels seen before the referendum.
Banks and wholesale money markets were also holding up well, added the Bank.

“The improved resilience of the core of the UK financial system and the flexibility of the regulatory framework, had allowed the impact of the referendum result to be dampened rather than amplified,” according to the minutes.

But the Bank said weakened property markets and recent figures suggesting consumer and business confidence had plunged in the wake of the Brexit vote fuelled its fears that risks from the Brexit vote had begun to “crystallise”.
It cautioned the “uncertainty flowing from the referendum result was likely to be negative for near-term activity”.

Brexit jitters have seen a raft of property funds go into lockdown after investors rushed to pull out their money over fears of a collapse in real estate prices.

The Bank has already unveiled a series of measures to help limit the Brexit blow, relaxing banking rules to boost their lending firepower by up to £150 billion and pledging to pump in at least £250 billion if needed to calm markets in the immediate aftermath of the Brexit decision.
It is expected that the Bank and Treasury may also look to expand its Funding for Lending scheme offering banks cheap finance on the condition they lend more.

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

The interest cost on Ireland’s debt fell below €7bn last year, the National Treasury Management Agency (NTMA) has said

The agency said the early repayment of Ireland’s IMF loans helped contribute to that.
But the organisation’s chief executive, Conor O’Kelly, warned that while the State’s debt dynamics are favourable, the debt pile remains at over €200bn.

“We do face challenges,” he said.
“Firstly, the supportive environment provided by the ECB’s quantitative easing programme should not be underestimated. Secondly, as so have said before, our debt is over €200bn and the UK referendum outcome is a reminder that Ireland is not immune to domestic or external shocks.”

The NTMA launches it’s annual report this morning.
It is the first year-on-year decline in the interest bill since 2008, Mr O’Kelly said.

In 2014, it was €7.5bn.
Mr O’Kelly said NTMA staff had been talking to investors over the last 24 hours regarding the 26pc GDP figure from the CSO.

He said there had been no investor reaction and that investors are aware of the nature of Ireland’s economy. He said the figure does “dilute the value” of the measure but said the NTMA looks at other economic gauges when selling Ireland.
On Brexit, he said there will ultimately be credit and economic implications for Ireland.

Mr O’Kelly said the GDP number was a “bit of a surprise”.
Finance Minister Michael Noonan said the activities that reflected the surge in GDP were not generated in the Irish market. He said the Government continued to plan a budget based on 5pc growth for this year.

Mr Noonan also expressed “regret” at the departure of George Osborne as UK Chancellor.
He said he was a very good friend of Ireland’s, and recalled his support in providing Ireland with a bilateral loan as part of the bailout programme.

He congratulated Philip Hammond and said he hopes the relationship will be equally as good. Mr Noonan said he will be in contact with Mr Hammond later today.
Mr Noonan said the debt-to-GDP ratio is falling but that we have to be vigilant and act prudently.

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