Banking fears, business pessimism and how tackling Covid was like learning to fly mid-air

In case there was any doubt about the economic impact of coronavirus, there were some sobering statistics from the Central Bank. Almost half of Irish home loans are out to borrowers working in areas of the economy that have been affected by the Covid-19 crisis. It also warned about the impact on the Republic's commercial real estate market.

The news coincided with a new paper on how Europe faces a fresh banking crisis if the economic shock caused by coronavirus stretches into 2021, while a new study showed that while the Republic still ranks among the world's most competitive economies, it has dropped out of the top 10 nations.

Against this gloomy backdrop, it's hardly surprising that Irish business leaders are the most pessimistic in relation to the time it will take for their businesses to recover from the coronavirus pandemic: a new survey out this morning shows more than a quarter expect revenues to drop by over 25 per cent.

In his column, Eoin Burke-Kennedy reckons the spectre of mass unemployment is now scarier for the public than a second wave of coronavirus.

IMF sees ‘profound uncertainty’ about global recovery

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US retail sales post record resurgence in May as 2.5m return to work

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NTMA warns Covid-19 borrowing leaves State exposed to rising interest rates

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Inflation hits five-year low as lockdown pushes prices lower

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On a more positive note, the deal for a programme for government drove up Irish share prices yesterday and was welcomed by business groups as a "step change" towards increased investment in public infrastructure. Colin Gleeson took the business temperature.

With Aer Lingus management saying they plan wage cuts of 70 per cent for some staff, Peter Hamilton explains the background to the growing dispute between airline and unions representing ground staff and cabin crew.

As our weekly interviews return, Dominic Coyle hears from the pharma frontline on how the race to find accurate tests for coronavirus "was like learning to fly a jumbo jet in mid-air'.

Back with banking and Revolut customers can now connect their other bank accounts to the company's app, allowing them to see all financial transactions in one place. Charlie Taylor reports.

One sector that performed strongly during the pandemic was grocery, so Ronald Quinlan reckons there should be strong interest in the sale of Supervalu's premises at the Pavilions Shopping Centre in Swords, Co Dublin at a guide price of €27 million.

The Irish Times has published its annual Top 1000 companies magazine, the definitive guide to Irish business. It is also available at irishtimes.com/top1000

The Irish Times has also launched its Innovation Awards for 2020 with applications now invited. The awards will recognise innovations and bright ideas brought to market between January 1st, 2019 and May 30th of this year, across five categories. It's free to enter so check out irishtimes.com/innovationawards.

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