Wednesday's business news
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What are the key business headlines today?
News Talk Breakfast with Keira Kelly and Shane Coleman. In association with AIR. Weekday mornings at 7 on News Talk.
Good morning and welcome to Breakfast Business and thank you to Shane Beattie. It is Wednesday the 22nd of October at 6.32. Coming up on today's show, we'll be talking about the rise of private markets and early stage investing and we'll be looking at the Argentinian economy ahead of key elections and all the markets as usual, including the big sell-off in gold and silver. You can email us, business at newstalk.com. But first, let's have a look at the main business stories in the newspapers and websites. Eoin Burke-Kennedy in the Irish Times reports that Goodbody Stockbrokers has upgraded its growth forecast for the Irish economy on the back of stronger-than-expected consumer spending, while warning of potentially softer FDI trends.
In its latest Outlook report, the company projected the economy would expand by 3.6% this year in modified domestic demand terms. up from a previous forecast of 3%, with growth of 3.2% and 2.9% respectively next year in 2027. Ongoing strength in the labour market, aided by buoyant population growth, is playing an important role in consumer spending, while government is playing an outsized role given the limited spare capacity in the Irish economy, the Goodbody chief economist Dermot O'Leary said. However, he warned that job announcement by IDA-supported firms have slowed, reflecting global uncertainty and US incentives for domestic investment. Reuters reports that Eurozone banks may come under pressure if US dollar funding, the lifeblood of financial markets, were to dry up.
The European Central Bank's chief economist, Philip Lane, said yesterday amid concern over President Trump's policies. Dollar funding fears have been at the back of central bankers' minds since Trump announced a wave of trade tariffs and began putting pressure on the Federal Reserve earlier this year. Philip Lane said Eurozone banks had navigated the turmoil well but could find themselves in a tight spot given their significant exposure to the dollar, which accounted for anywhere between 7% and 28% of all their liabilities and 10% of assets in the second quarter of the year. Any sudden changes in these net exposures could not be ruled out and could potentially limit banks lending to the economy, he said.
And Andrew Ross in the Business Post reports that the Irish economy, the Irish energy company DCC has agreed to buy Flaga GmbH, an Austrian liquid gas distributor from UGI International. marking its entry into Austria's liquid gas market. The Dublin-listed sales and support services company also completed the purchase of Avanti Gas, a UK cylinder business from UGI earlier this month. Flaga distributes around 45 million litres of liquid gas annually through a nationwide network.
How is the Irish economy performing amid consumer spending trends?
The Flaga deal values the business at €55 million on a cash-free, debt-free basis and is expected to generate a mid-teen return on capital employed in its first year.
News Talk Breakfast with Keira Kelly and Shane Coleman. In association with AIR. Weekday mornings at 7 on News Talk.
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