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Inflation conundrum, Digicel bridging loan, and the tyranny of big numbers

Business Today: the best news, analysis and comment from The Irish Times business desk

The increase in EU inflation muddies the waters for the European Central Bank as it prepares to lift interest rates on Thursday.

Peter Flanagan's face
Peter Flanagan
Wed May 3 2023 - 06:30

Euro zone inflation rose ticked up slightly to 7 per cent in April, complicating the picture for rate-setters at the European Central Bank when they meet on Thursday to set borrowing costs. The figure for consumer prices was worse than the flat reading – from 6.9 per cent the previous month – that economists had expected. The ECB had been likely to hike rates this week before the inflation data, but now the question of high big a hike is needed becomes a live one.

Bondholders in Denis O’Brien’s Digicel, who are on track to take control of the over-indebted business as part of a massive restructuring, have agreed to grant the group a bridging loan of up to $100 million (€90 million) as work continues on the wider overhaul. Joe Brennan reports.

Some good news for consumers: The average cost of groceries across Irish supermarkets has fallen for the first time in two years, according to new figures from retail analysts Kantar. Conor Pope has the details.

In her column, Sarah O’Connor asks why people can’t appreciate huge numbers, and what that means for society as a whole.

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In Money Matters, Briana Parkins looks at the financial advice we receive from people outside of business, and asks what, if any, should we pay attention to.

A High Court judge will rule on Wednesday on whether she should recuse herself from hearing solicitor Ammi Burke’s challenge to the Workplace Relations Commission’s (WRC’s) rejection of her claim she was unfairly dismissed by law firm Arthur Cox. Ellen O’Riordan reports from Court 9.

Permanent TSB’s much vaunted deal for a significant portion of Ulster Bank’s business here appears to be paying dividends. The bank said on Tuesday its net interest income soared 86 per cent in the first three months of the year as it acquired much of Ulster Bank’s loans and benefited from rising interest rates. Joe has the story.

The commercial property sector may be something of a downturn, but the average value of transactions in the market here swelled to €30.1 million in the first three months of the year, a record high for a first quarter, according to Savills. Ian Curran read the report.

Telecoms giant Verizon won’t have to pay hotel bills and conference fees to four staff representatives from its pan-European works council for a Brexit training course following a landmark case before the Workplace Relations Commission. Stephen Bourke reports.

A partner in an accountancy practice – who also owns 14 rental properties here – has lost his €1.584 million income tax battle with the Revenue Commissioners. Gordon Deegan has the details.

Irishman Alan Joyce to step down as CEO of Australian airline Qantas after 15 years in charge, to be replaced by chief financial officer, Vanessa Hudson.

The amount of electricity generated by Greencoat Renewables’ portfolio of wind farms declined 7 per cent in the first quarter, Ian reports, due to low wind speeds but “strong cash generation” in the first three months of the year helped offset the impact of lower forward power prices, the company said in an update on Tuesday.

In commercial property, Ronald Quinlan reports on the Garda Ombudsman’s headquarters in Dublin going on the market for €19.2 million, while land in Cabinteely on the capital’s southside with scope for 118 new homes is on the block for €5 million.

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