A roundup of today's other financial news in brief
Rates should stay low – Ulster Bank
Concerns about a spike in inflation as central banks devise “exit strategies” from monetary stimulus packages are “overblown”, meaning interest rates should be able to stay low for the medium term, according to the latest global investment outlook from Ulster Bank.
“With significant slack still in the economy, as long as wage growth and inflation expectations remain contained, policymakers should be able to maintain low rates,” said Ulster Bank investment director Alan Dunne.
“As a result, we see potential for interest rates to stay lower for longer than is currently priced into the market.”
Ulster Bank investment analyst Michael Casserly said gold prices were likely to fall back from their current levels but “remain at historically high prices”.
Gold prices reached an all-time high yesterday.
Santander Brasil slips on day one
Brazil’s biggest ever initial public offering kicked off with a whimper instead of a bang as shares of the Brazilian unit of Spanish bank Santander edged lower in their trading debut.
Executives of Santander Brasil sought to focus on the fact that it raised 14.1 billion reais (€5.4 billion) with its IPO in Sao Paulo and New York, the largest ever in Brazil and the biggest in the world since March 2008.
“The timing could not have been better,” Fabio Barbosa, Santanders chief executive for Brazil, said. - (Reuters)
SMEs ‘confident’ about future
Small and medium-sized firms are feeling more confident about their future despite continuing to find trading difficult, according to two new surveys.
Isme’s third quarterly trends survey of over 500 companies reveals that the business environment remains tough with job losses continuing, sales still weak and profits and revenue under sustained pressure.
According to the survey, 37 per cent of SMEs remain pessimistic about their future compared to 56 per cent in the previous quarter.
Architect laid off 40 over last month
Murray Ó Laoire Architects let 40 people go over the last month as the slowdown in construction and State contracts continued, writes Barry O’Halloran.
The practice confirmed yesterday that it had to cut its workforce by 40 over the last month.
Director Seán Ó Laoire told The Irish Timesyesterday that the company still had 140 people working for it, adding that the decision to lay off staff was a particularly difficult one.
Role of small retailers stressed
Independent family-owned shops make a crucial contribution to the economic and social life of the country, a group of independent retailers heard yesterday. More than 250 delegates attended the first in a series of events organised by RGData, the representative body for the independent retail grocery sector in Ireland.
Economist Jim Power, who is conducting research on behalf of RGData, told delegates in Dublin that the country’s 6,000 independent convenience stores, forecourt shops and supermarkets employed 95,000 people and made a significant contribution to the exchequer.
Quoting from a study which will be published in early November, he said the sector paid 358 million in combined taxes, PRSI and levies, more than €2 billion in wages, €57 million in commercial rates and €36 million in local authority charges.
