Tuesday, October 30 08:13:37
Germany's Finance minister Wolfgang Schauble is confident that Ireland can exit its current troika-funded bailout programme at the end of 2013. "I am totally confident that Ireland is on track ," Mr Schauble said in Dublin yesterday. "No problem at all. I am confident 100 per cent." He cited the International Monetary Fund's latest quarterly report earlier this month, which showed that Ireland continues to meet the terms of the bailout programme. Mr Schauble paid a brief visit to Dublin yesterday, holding a 40-minute meeting with Minister for Finance Michael Noonan andMinister for Public Expenditure and Reform Brendan Howlin at Farmleigh in the Phoenix Park.
Speaking to the media after the meeting, Mr Schauble declined to comment on the issue of the Anglo Irish Bank promissory notes. "It is a matter between the Irish Government and the European Central Bank," he said. "It is not a good idea to make a comment on this matter." On the promissory notes issue, Mr Noonan said: "There is engagement and we hope that progress can be made."
The German minister said he would be as supportive to Ireland as in the past when asked about the possibility of securing a deal on Irish bank debt. Mr Schauble caused consternation last month when he suggested Ireland could not expect a retrospective deal on the legacy debts of our banks. The minister said the European Stability Mechanism (ESM) should be used only for future bank recapitalisations. Yesterday, he referenced the joint statement released by Taoiseach Enda Kenny and German chancellor Angela Merkel on October 21st, which described Ireland as a "special case". The Irish Times
Wall Street is bracing itself for higher volatility when trading resumes later this week as investors consider the impact of Hurricane Sandy in addition to a key jobs report and the upcoming US presidential elections. US equity and options markets were closed yesterday and the shutdown extended to today. It was unclear whether stock markets would resume trading tomorrow. The closure comes after the broad measure of US stocks, the SP 500, fell 1.5 per cent last week and Wall Street's "fear gauge", the CBOE's Vix index, hit its highest level since early August. The sell-off took place as some of the world's largest corporations, including Amazon, Caterpillar, and DuPont, reported lacklustre quarterly results. Even so, stocks have risen 12.3 per cent so far this year.
Analysts said the hurricane - set to make landfall in the east coast of the US late yesterday - added greater uncertainty to what was already a complicated landscape for stocks. The Bureau of Labour Statistics said the release of the critical US non-farm payroll data, due on Friday, could be reviewed for a possible delay. - Copyright The Financial Times Limited 2012. The Irish Times
Deutsche Bank, Europe's biggest bank, said third-quarter profit unexpectedly rose after investment banking revenue exceeded targets. Net income climbed an annual three per cent to E747 million in the three months through September, the Frankfurt-based company said in a statement today. "The more favourable environment combined with persistently high central bank liquidity benefited both the stock markets, which reached their highest levels in over a year, and the issuance of equity and debt capital," Deutsche Bank said in the statement.
"Therefore it is likely that investment banking and asset management revenues achieved moderate growth in spite of a decline in trading volumes." Deutsche Bank is seeking to increase its share of income from investment banking among the world's largest banks, helping offset costs associated with firing employees and restructuring. The lender, which is cutting 1,900 jobs, has said it will incur E4 billion in costs to achieve annual targeted savings of E4.5 billion by 2015. The investment bank's revenue from trading in the debt markets surged an annual 67 per cent to E2.5 billion, Deutsche Bank said.
The average estimate of six analysts was for revenue of E2 billion. Revenue from trading in equities jumped 67 per cent to E642 million, beating a E473 million forecast. Deutsche Bank advanced 13 per cent this year in Frankfurt trading, outperforming the 4 per cent gain in the 28-company Euro Stoxx Bank Index. The Irish Times
US stock markets are set to remain shut today, and possibly into tomorrow, after Wall Street trading was forced to close because of bad weather for the first time in 27 years yesterday. Last night US stock market executives, regulators and brokers agreed to keep the US stock markets closed for a second day because of Hurricane Sandy. Oil prices rose the most in three weeks and stocks fell around the world as Hurricane Sandy threatened the output of US refineries. Shares in US insurer Travelers fell 1pc in trading in Germany, where it has a secondary listing. Travelers is the only insurer listed in the Dow Jones Industrial Average, and likely to be hit with payouts as a result of the storm. Trading on its home market was suspended.
Allstate Corp, a US home and car insurer fell 0.8pc. Many investors around the world opted to stick to the sidelines because of the US crisis. Markets in Europe experienced low trading volumes because of the lack of activity in the US. Efforts are now under way to reopen US stock markets tomorrow, but a final decision has not yet been taken. The US bond market, including electronic trading, was closed at midday yesterday.
It is understood the market only opened in the morning to enable the US government to issue a short-term debt at a scheduled auction. The bonds industry itself is understood to have been in favour of a total shutdown. "It doesn't make sense to put people in harm's way or to only have half a market," said Nicholas Colas, chief market strategist at ConvergEx Group in New York. The Irish Independent
Former Irish international and Sunderland boss Niall Quinn's QSat is eyeing up contracts in Iraq and elsewhere. QSat has formed a partnership with Kerry-based Altobridge that could take it into markets like Iraq, where Altobridge already provides technology to bring mobile connectivity to remote areas. Quinn's company aims to bring broadband to rural regions via an innovation in satellite technology.
"We are looking at Iraq," Quinn said on Friday from Kenya, where QSat has set up an office -- as a hub for expansion across Africa -- in a team-up with Intel and Altobridge, where former Tanaiste Dick Spring is chairman. Quinn knows Africa from his Sunderland days when the soccer club promoted trade there. Initially QSat would look to Kenya and Ghana. "We have invites at government level to operate in five other countries. Niger and Tanzania are on the cards," Quinn said. "Initially we hope to be the 'on the ground' provider for rural areas around Mombasa and Nairobi. We're here laying the foundations for that. We're setting up the Nairobi office and hiring people." The Irish Independent