<?xml version="1.0" encoding="utf-8"?>
<?xml-stylesheet title="XSL_formatting" type="text/xsl" href="rss_convert.xsl"?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom">
<channel>
























<atom:link href="http://www.KBC.ie/cat_news_rss.jsp" rel="self" type="application/rss+xml" />
<title>KBC: Business News</title>
<link>http://www.KBC.ie/rss.jsp</link>
<description>Latest Business News</description>
<copyright>Copyright KBC</copyright>
<language>en-ie</language>
<ttl>60</ttl>
<category domain="News">Business News</category>
<image>
	<title>KBC Business News</title>
	<url>http://www.KBC.ie/images/kbc-bank_logo.gif</url>
	<link>http://www.KBC.ie/cat_extra_news_rss.jsp</link>
</image>

<item>
    <title><![CDATA[ISEQ closes the week a tad higher]]></title>
    <description><![CDATA[The ISEQ shook off three days of losses today to close the week slightly higher despite unease in global markets over the direction the US Fed will take on its stimulus package.

At the close, the ISEQ was up 5.14 points to 4,045.91.

-lobal equity markets slipped today on worries that the U.S. Federal Reserve may curtail its stimulus measures, while the dollar recovered against the euro to trade almost flat after better-than-expected U.S. durable goods data for April. European shares fell, marking their first weekly decline in five weeks, while U.S. stocks were poised to do the same after testimony by Fed Chairman Ben Bernanke sparked speculation the U.S. central bank will begin to trim its support for the economy.

Shares in Glanbia were flat at E10.80. The Irish firm is the number 1 processor of American-style cheese; Number 1 global marketer of whey protein; Number 2 global pre-mix solutions provider; and Number 1 global sports nutrition brand family. It is truly an international company: All four divisions operate internationally. The growth opportunity is global. Performance Nutrition is replicating its US success in new regions with 30pc of sales now outside the US while US Cheese has a well-established export model in place to tap growing demand in South America and ASIA-Pacific. Pre-mix Solutions is leveraging its production/technical facilities in Germany, North America and China. Ingredient Technologies now serves 49 countries from its core North American production base, Davy said today.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 17:36:08 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22549</guid>
  
</item>


<item>
    <title><![CDATA[News Corp begins spin off process]]></title>
    <description><![CDATA[News Corp set the distribution ratios for the spinoff of its publishing business, which may start buying back stock right away.

The board of the publishing business, which will retain the News Corp name, authorised a $500 million stock repurchase program, the company said on Friday.

The stock repurchase may shed light for analysts and investors who want to know how the new News Corp will use the $2.6 billion in cash it will have when the spinoff takes place. That is expected to occur on June 28.

Chairman Rupert Murdoch and Chief Executive Officer Robert Thomson will give more details about the company at a conference on May 28.

The board of the existing News Corp has now formally approved the split-up of the company's publishing business from its entertainment operations. Current News Corp stakeholders who own four shares of Class A or Class B common stock will receive one share of new News Corp's Class A or Class B common stock.

To prevent hostile takeovers, News Corp put in place a poison pill provision for one year after the split. It will be triggered if someone acquires more than 15 percent of the stock of either company.

News Corp has a history of potential takeovers. In 2004, Liberty Media Corp's John Malone had quietly snapped up a 20 percent voting stake in the company. The move prompted Murdoch to swap his stake in DirecTV and other assets for Malone's shares in News Corp.

The new News Corp will be an independent publicly traded company.

The entertainment assets, including Fox broadcasting network, movie studio and lucrative equity stakes in pay-TV providers, will be known as 21st Century Fox.

21st Century Fox will retain no ownership interest in News Corp, the company said.

The publishing spinoff includes News Corp's newspapers including The Wall Street Journal and The Times in London, a cable network and pay-TV provider in Australia, book publisher HarperCollins and fledgling education company, Amplify.

The company named current directors Lachlan Murdoch and James Murdoch to the board of the new News Corp. New additions to the board include Thomson; Ana Paula Pessoa, a partner at Brunswick Group; John Elkann, head of Exor SpA ; and Masroor Siddiqui, head of investment firm Naya Management. (Reuters)

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 17:21:10 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22550</guid>
  
</item>


<item>
    <title><![CDATA[Euro equities struggle to make headway]]></title>
    <description><![CDATA[European shares fell for a second consecutive session today, led by financials on concern over growth in Asia and the potential scaling back of U.S. monetary stimulus.

The FTSEurofirst 300 provisionally closed down 2.83 points, or 0.2 percent, at 1,227.11, to end the week 1.7 percent lower.

That first weekly fall in a month was driven by downbeat data from China and the U.S. concerns, fuelled by comments from Federal Reserve chairman Ben Bernanke earlier in the week, which prompted profit taking on equity indexes trading at multi-year highs.

"We remain positive on equities in general ... (but) more broadly equity markets may lose some momentum now that they must worry about stimulus withdrawal," Guy Foster, head of portfolio strategy at Brewin Dolphin, said.

European shares have rallied nearly 30 percent since mid-2012 as central bank easy monetary policy, including low interest rates and bond purchases, has supported growth and driven down yields of other asset classes, in turn forcing investors into equities for their higher returns.

Sectors that track economic growth more closely, such as auto makers and basic resources, each fell 0.8 percent, while financials , which have enjoyed a stellar quarter so far, led the fallers.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 16:48:16 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22551</guid>
  
</item>


<item>
    <title><![CDATA[Intel spend USD1.5m on research in Cork]]></title>
    <description><![CDATA[Intel today announced details of the second phase of its research investment at Ireland's leading ICT research Institute, the Tyndall National Institute at University College Cork.

The investment of $1.5 million over the next 3 years secures the continued unique collaboration between Tyndall and the heart of Intel's process technology research group in the U.S. and is a testament to the success of the first phase of the program which ran from 2009-2012.

The agreement will again provide Intel with a commercial exploitation license to technology created through the collaboration with Tyndall.

Intel and Tyndall have been working closely together for a number of years on a range of different technologies leading to the first phase of research investment by Intel in the Institute in 2009.

Through their publications and technology, Tyndall researchers continue to demonstrate their ability to innovate and invent technologies that could potentially advance the frontiers of semiconductor technology. This latest funding agreement, which is the only one of its kind for Intel in Ireland, enables the continuing relationship directly between Tyndall and Intel's internal research group in Portland.

Dr. Mike Mayberry, Director of Components Research in Portland Oregon and, Corporate Vice President of Technology and Manufacturing Group, Intel Corporation joined with Eamonn Sinnott, General Manager at Intel Ireland and Vice President of Technology and Manufacturing Group, Intel Corporation, to make the funding announcement. Tyndall were represented by their CEO Dr. Kieran Drain and members of his senior staff, and Minister Simon Coveney, was also in attendance at the event which was held today's at Intel's campus in Leixlip.

Speaking at the event and announcing the new funding agreement, Intel's Mike Mayberry said "I am delighted to be here today to announce our next phase of funding at the Tyndall National Institute. This repeat Intel investment of $1.5m for a further three years is a testament to the success of the 2009-2012 program in which we enjoyed a highly collaborative engagement which produced some very useful learnings for us across a range of challenging topics in areas such as photonics, device modelling and new material development".

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 16:13:57 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22547</guid>
  
</item>


<item>
    <title><![CDATA[Iceland PM rejects EU, embraces EU goals]]></title>
    <description><![CDATA[Iceland must find stability by aiming for the same economic goals as those set for EU states, even though it is sceptical about joining the EU and will keep its own currency, the new prime minister said.

Iceland is still recovering from the collapse of its top three banks in late 2008 and although growth has returned, many Icelanders are disappointed at what they see as a slow recovery.

Sigmundur David Gunnlaugsson's centre-right Progressive party made big gains in elections last month where voters handed the incumbent Social Democrats the worst defeat of any ruling party since independence from Denmark in 1944.

"It is clear that Iceland will use the Icelandic krona (crown) for the foreseeable future, for the next years at least," Gunnlaugsson told Reuters Television late on Thursday after formally taking office.

This week he announced that the government would suspend Iceland's talks on entering the EU, pending a referendum on whether they should continue.

Still, the 38-year-old party leader, who has studied in Copenhagen and at Oxford University in Britain, saw benefits from the economic goals EU countries are supposed to meet, including limits on budget deficits, public debt and inflation.

"All politicians, all political parties, the unions, the employers, the central bank, should all join hands in fulfilling those criteria," he added.

"Not necessarily because we want to join the EU, but because it makes economic sense, as it is what needs to happen in all cases, whether we want to continue with the krona, or make some changes," he added.

The Progressive Party and Independence Party won April's election despite being blamed for pursuing policies that laid the groundwork for the banks' expansion abroad, and then their collapse in the 2008 credit crunch.

Capital controls to protect the crown are still in force, preventing free flows of funds and hampering investment.

Some in Iceland have suggested the crown should be dumped, or linked to a more stable currency.

-unlaugsson said he would aim to simplify the tax system and make it more conducive to growth with what he called "positive incentives", without giving further details.

The new government has also said that it would aim to reduce high levels of household debt, and Gunlaugsson said that this was of vital importance for the economy. (Reuters)

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 16:10:33 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22548</guid>
  
</item>


<item>
    <title><![CDATA[Wall St falls as Fed plan is eyed]]></title>
    <description><![CDATA[.S. stocks fell at the open today, putting Wall Street on track for its first weekly decline since mid April, amid concern the U.S. central bank may scale back its support to the economy.

The Dow Jones industrial average dropped 61.13 points, or 0.40 percent, to 15,233.37. The Standard and Poor's 500 Index lost 8.19 points, or 0.50 percent, to 1,642.32. The Nasdaq Composite Index fell 18.98 points, or 0.55 percent, to 3,440.44.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 15:23:00 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22543</guid>
  
</item>


<item>
    <title><![CDATA[Atlantic research treaty inked in Galway]]></title>
    <description><![CDATA[Ireland, and Galway in particular, today sees the signing of an historic agreement between the EU, the US and Canada, all of whom share a North Atlantic coastline.

The 'Galway Statement on Atlantic Ocean Cooperation' was signed today at a high level conference at the Irish Marine Institute in Galway.

Taoiseach Enda Kenny, attended the event together with Minister Simon Coveney, EU Commissioners Maire Geoghegan-Quinn and Maria Damanaki and representatives of the USA and Canada as well as other smaller Atlantic Coastal States.

The agreement will see the joining forces for ocean observation and research.

The two main goals are to better understand the Atlantic Ocean and how to manage its resources in a sustainable way and secondly to study the interplay of the Atlantic Ocean with the Arctic Ocean, particularly with regards to climate change.

The EU and its Member States alone invest nearly two billion euro on marine and maritime research each year.

European Commissioner for Research, Innovation and Science, Maire Geoghegan-Quinn, said: "The enormous economic potential of the Atlantic remains largely untapped. We probably know more about the surface of the Moon and Mars than we do about the deep sea floor. This alliance can make a big contribution to meeting challenges such as climate change and food security."
European Commissioner for Maritime Affairs and Fisheries, Maria Damanaki, said: "Today's agreement builds on the Atlantic Action Plan we put forward this month. While the initiative is of particular interest for the EU's five Atlantic states, it is open to researchers from all over Europe and beyond. The knowledge gained will be of benefit to all."

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 15:00:23 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22544</guid>
  
</item>


<item>
    <title><![CDATA[HSBC Chairman seeks regulatory reform]]></title>
    <description><![CDATA[HSBC's Chairman Douglas Flint called for an acceleration in the speed of reform within the industry as the bank was criticised by shareholders for compliance failings and accusations it aided tax avoidance.

Flint told around 400 shareholders at the bank's annual meeting that the fallout from recent scandals had created a "once-in-a-generation" opportunity to reform banking and the broader financial industry.

"As a first priority we need to speed up the reform process. Otherwise investor confidence in the sector will continue to be undermined," he said.

Flint also apologised to shareholders for the bank's failings after it was handed fines of $1.9 billion in December, the largest ever imposed on a bank, following a U.S. investigation into its Mexican and U.S. operations.

The probe made scathing criticism of HSBC's anti-money-laundering systems and found its lax controls allowed two drug cartels to move $881 million through the bank.

"We were humbled and horrified to discover findings of such magnitude," said Flint.

The settlement included a deferred prosecution agreement (DPA), meaning the bank's operations will be monitored but it remained exempt from prosecution unless it transgresses again.

The Guardian newspaper on Friday reported a row between the U.S. Justice Department and the judge overseeing the case. It said Judge John Gleeson is believed to be considering rejecting the deal, which could leave HSBC facing a criminal prosecution.

A spokesman for the bank said: "HSBC is focused on taking all necessary steps to fulfil its obligations under the agreements with the U.S. and UK governments, and on implementing effective global standards across the HSBC network."

HSBC, Europe's largest bank, was slammed by several shareholders for its mistakes in Mexico and accused of aiding tax avoidance by customers in countries including Switzerland and Jersey.

Flint said the bank was reviewing its operations in so-called tax havens and expects a significant reduction in the amount of business it does in those jurisdictions, though he said legitimate business is done there.

"We are co-operating with tax authorities as they seek out if there is tax unpaid by individuals," Flint said. "We will make ourselves as bulletproof as we can in this area."

Almost 90 percent of HSBC's shareholders backed its 2012 pay plan for executives at the meeting. Including abstentions, 14.7 percent of shareholders failed to back the plan.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 14:56:23 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22545</guid>
  
</item>


<item>
    <title><![CDATA[Petroceltic gives up on Bulgarian well]]></title>
    <description><![CDATA[Irish energy prospector, Petroceltic International today said it will abandon an exploration well off the Bulgarian coast that failed to yield enough gas to justify commercial production.

It said its Kamchia-1 exploration well, part of the Galata exploration concession, reached a total depth of 2,887 feet and encountered 56 feet of carbonate sands with sub-commercial gas saturations.

The company said the well has consequently been plugged and abandoned and that the drilling rig was moving on to work on another discovery before being sent to drill Petroceltic's first exploration wells offshore Romania this summer.

"We are disappointed with the outcome of the Kamchia-1 well and plan to complete the post drill analysis prior to formulating forward plans for the Galata exploration concession," chief executive Brian O'Cathain said.

Petroceltic's shares fell 5 per cent in early London trading to 6.33 pence today.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 14:52:26 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22546</guid>
  
</item>


<item>
    <title><![CDATA[Global oil prices set for a big fall]]></title>
    <description><![CDATA[il was poised to post its biggest weekly loss in more than a month as Brent fell below $102 per barrel today, pressured by ample supply and a sluggish economic recovery that could dent demand for fuel.

Crude inventories in the United States are near record levels as the world's top oil consumer produces more from shale, while shrinking factory activity in China has capped fuel demand growth in the world's No.2 user.

Improved U.S. jobs and home sales data also sparked worries that the Federal Reserve could soon scale back bond purchases and rein in the huge flow of cash that has encouraged financial investors to bet on oil amongst other assets.

Brent fell 70 cents to $101.74 by 1309 GMT, stretching its losses into a fourth session. U.S. crude fell $1.15 to $93.10 a barrel.

Both were on track for a more than 2 percent drop this week, their biggest weekly fall since the week that ended April 19.

"With the bearish fundamentals starting to gain momentum, the likelihood of oil prices falling further is becoming more likely," Dominick Chirichella of Energy Management Institute said.

"Global demand growth is still looking like it is turning to the downside."

Brent hit a three-week low on Thursday after a survey showed that China's factory activity shrank for the first time in seven months in May, stoking worries over the demand outlook for commodities.

-lobal oil prices peaked in the first quarter but have since fallen by more than 15 percent and are now down around a third from their all-time peak just before the financial crash in 2008.

Investors are looking for a rebound in China's economic growth in the second half of the year that could lift the outlook for fuel demand.

"We expect China's quarter-on-quarter GDP growth to accelerate in the rest of this year, although year-on-year growth could come in flat or even fall," Bank of America Merrill Lynch economists said in a note.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 14:38:36 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22540</guid>
  
</item>


<item>
    <title><![CDATA[US indicator points to factory strength]]></title>
    <description><![CDATA[rders for long-lasting U.S. manufactured goods rose more than expected in April, a sign of resilience in the factory sector despite belt-tightening in Washington and weakness in overseas markets.

Durable goods orders, which range from toasters to aircraft, increased 3.3 percent last month, the Commerce Department said today. The department also revised prior readings for orders to show a smaller decline in March than previously estimated.

Economists polled by Reuters had expected orders to rise 1.5 percent. Excluding transportation, orders climbed 1.3 percent.

A measure of underlying demand in the factory sector, which strips out aircraft and military goods and is a closely watched proxy for business spending plans, advanced 1.2 percent, a faster clip than analysts had expected.

However, shipments of these core capital goods, which go into calculations of equipment and software spending in the gross domestic product report, fell 1.5 percent. That suggests business spending got off to a weak start in the second quarter, and could reinforce expectations that economic growth will slow during the period.

The U.S. economy has appeared to weather harsh fiscal austerity measures surprisingly well this year. Washington hiked taxes in January and enacted sweeping budget cuts in March.

At the same time, economists expect the austerity will sap strength from the economy as the year progresses. In April, shipments for capital goods in the defense sector fell 5.6 percent.

The strength in overall new orders was broad based, from transportation to machinery and electronics, running counter to recent signs of weakness in the factory sector.

Financial data firm Markit said on Thursday its preliminary factory purchasing managers' index hit a seven-month low in May.

Demand for transportation equipment jumped 8.1 percent, boosted by sharp gains in the volatile aircraft segments. (Reuters)

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 14:18:12 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22541</guid>
  
</item>


<item>
    <title><![CDATA[IPSO review after Ulster Bank debacle]]></title>
    <description><![CDATA[The Irish Payment Services Organisation (IPSO) has completed an external review for the Central Bank after last year's debacle at Ulster Bank and found that greater risk assessment is needed in banks.

The Ulster Bank technical incident in 2012 affected payments to and from Ulster Bank accounts for a number of weeks and the Central Bank sought a review of the methodology employed for conducting Risk Assessments in the Irish Retail Electronic Payments Clearing Company Ltd. (IRECC) and the Irish Paper Clearing Company Ltd. (IPCC).
 
This review has been completed and while it found IPSO's risk management process to be relatively robust, based on International best practises, a number of improvements were recommended.

These include that the IPSO Risk Framework should be fully aligned with industry best practice; the risk assessment should be carried out annually (rather than every two years) and that there will be external validation of the clearing banks' submissions to annual risk assessments.

It also recommended that assessments will focus on the payments systems as a whole rather than looking at the individual elements that comprise the payments systems and that representatives from member banks' operations, I.T., and risk functions will present their assessments to a Payments Risk Governance Board comprising IPSO, the Payments and Securities Settlements Division and the Banking Supervision Division of the Central Bank of Ireland.

IPSO and its members have agreed to implement all of the recommendations and have arranged a timetable with the Central Bank of Ireland for their implementation.

Speaking about the project earlier today, Pat McLoughlin, CEO of IPSO said, "IPSO and its member banks are committed to ensuring we have a robust system of Risk Assessments to guarantee that customers continue to trust in their payments being made safely, efficiently and quickly."

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 14:09:20 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22542</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ slips for third day in a row]]></title>
    <description><![CDATA[The ISEQ fell again this morning marking three days of mostly modest falls while staying above the 4,000 level.

The index dropped 17.35 points ton 4,023.42.

World share markets looked vulnerable to further falls today, with better economic news from Europe doing little to encourage investors who are worried that central bank stimulus may curtailed. MSCI's world equity index, which shed 1.4 percent for its second biggest daily loss of the year on Thursday, was virtually unchanged, with losses in Europe cancelling out a rise of nearly one percent in Japan's turbulent Nikkei.

Shares in Glanbia fell 6c to E10.75. The Irish firm is the number 1 processor of American-style cheese; Number 1 global marketer of whey protein; Number 2 global pre-mix solutions provider; and Number 1 global sports nutrition brand family. It is truly an international company: All four divisions operate internationally. The growth opportunity is global. Performance Nutrition is replicating its US success in new regions with 30pc of sales now outside the US while US Cheese has a well-established export model in place to tap growing demand in South America and ASIA-Pacific. Pre-mix Solutions is leveraging its production/technical facilities in Germany, North America and China. Ingredient Technologies now serves 49 countries from its core North American production base, Davy said today.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 12:50:05 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22539</guid>
  
</item>


<item>
    <title><![CDATA[Adidas-Puma rivalry ahead of big match]]></title>
    <description><![CDATA[-erman sportswear makers Adidas and Puma will renew their own decades-old rivalry when Bayern Munich and Borussia Dortmund meet in the Champions League Final at Wembley tomorrow.

Adidas is the long-standing kit supplier to Bayern and owns a stake of around nine percent in the Bavarian club, while Puma became the sportswear partner of Dortmund a year ago.

The German companies were set up after a falling out by the Dassler brothers in the Bavarian town of Herzogenaurach in the late 1940s and remain among the best known global sports brands.

However, while Adidas and U.S. rival Nike dominate a soccer market estimated to be worth up to 4.5 billion euros ($5.8 billion), Puma is playing catch-up after years of focusing more on fashion than performance sportswear. Its decision to partner with Dortmund yielded an instant return when the club made it to the Champions League final - the biggest prize in European club soccer and expected to attract a global television audience of over 150 million.

"They have overachieved our expectations," Puma Chief Commercial Officer Stefano Caroti told Reuters.

"The exposure that we are having, especially this weekend, will make the club not just a local asset but it will become a truly global player," he added in a telephone interview.

Retailers in Japan, Malaysia and Britain have been signing up to buy the new Dortmund kit which will be launched next month, Caroti said, adding that the publicity the team has generated created a "halo effect" that would boost sales by bringing more customers into stores.

Dortmund's success has provided a rare bright spot for Puma, which warned last week of shortfalls in sales and profit. Adidas by contrast reported its highest ever gross profit margin earlier this month.

A renewed focus on soccer has seen Puma pull out of sailing and European rugby, saving money in order to plough it into sponsorship deals that will bring it more business.

Caroti said the success of Dortmund and individual deals Puma has done with top players including Cesc Fabregas of Barcelona and Radamel Falcao of Atletico Madrid had helped to give its "leaping cat" brand renewed credibility in soccer.

Soccer currently makes up more than 10 percent of total sales and is growing, he said. Puma has overall annual revenues of around 3.3 billion euros compared with 14.9 billion for Adidas.

Puma's long-term objective is to build team sports into a billion euro business, Caroti said, adding soccer would be the mainstay of this division.

According to reports in English media, Puma are set to agree a deal worth more than 30 million pounds ($45.2 million) a year to provide the kit for English Premier League club Arsenal, replacing Nike. (Reuters)

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 12:26:51 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22537</guid>
  
</item>


<item>
    <title><![CDATA[Big fall in number of firms wound up]]></title>
    <description><![CDATA[The Irish High Court has heard petitions to have 45 Irish companies wound-up this year so far - a drop of almost 38pc on the same period in 2012, according to figures from Vision-Net today.

The courts have liquidated 24 (53pc) of the 45 companies that had petitions against them and a further four have subsequently been liquidated.

In the same period in 2012, petitions to have 72 Irish companies were heard by the courts who went on to liquidate 38 (53pc) of them with a further 18 going in to liquidation.

According to their latest filed accounts, the 24 companies that have been wound up by the High Court this year owe their short term creditors over E22.6m approx.

In order to Petition the Courts to have a company wound-up a creditor must be able to prove that they are owed at least E1,269.74 by the company.

There were 678 insolvency notices issued this year so far this year.

The value of consumer and commercial judgments awarded already this year stands at E174.6m. This works out as an average value of over E74,857 per judgment.

The Vision-Net figures show that there were 5,883 judgments were awarded in 2012. It shows that 66pc were against consumers and they totalled almost E319.8m.

Commercial judgments accounted for another E63.2m.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 11:47:19 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22538</guid>
  
</item>


<item>
    <title><![CDATA[Irish American philanthropist Moore dies]]></title>
    <description><![CDATA[-eorge Moore, an Irish businessman and entrepreneur who made a fortune in the US and devoted much of his life to good causes has died.

The 60-year-old Dundalk native who was a leading philanthropist, passed away in the U.S. where he has been resident for many years in Northern Virginia, the Irish Central newspaper reported today.

Moore was ranked among the wealthiest Irish on the Sunday Times list at $205 million and he had underwritten many projects with his funding including the University College Dublin (UCD) science building.

He made his fortune with Targus, one of the first information processing companies, which he sold for a reported $185 million. He also owned Galway Crystal and Belleek China and was heavily involved in North/South peace and economic ventures, Irish Central reporrted.

He was a great benefactor of the American Ireland Fund where he headed the Finance Committee.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 11:35:12 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22533</guid>
  
</item>


<item>
    <title><![CDATA[European shares head lower this morning]]></title>
    <description><![CDATA[European shares edged lower today, led by auto and banking shares as investor sentiment remained shaky on concerns about a possible rolling back of U.S. monetary stimulus.

The pan-European FTSEurofirst 300 index was down 0.4 percent at 1,225.26 points at 0941 GMT, with selling momentum accelerating as the index approached Thursday's intra-day low at around 1,223 points.

"(I've) just seen a few stop levels triggered there on decent volume," Peter Rice, head of investment strategy at Logic Investments, said. "We're now close to yesterday's lows, a break below will likely see further selling pressure."

Autos and banks were the top fallers, down 1.3 percent and 1 percent, respectively.

Volume was thin at 26 percent of the FTSEurofirst 300's full-day average for the past 90 days, with some traders already away ahead of a long weekend in Britain and the United States. (Reuters)

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 11:26:37 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22534</guid>
  
</item>


<item>
    <title><![CDATA[CPA Ire say firms crying out for support]]></title>
    <description><![CDATA[The President of the Institute of Certified Public Accountants in Ireland (CPA Ireland) has called for increased supports to help Irish entrepreneurs and leaders of SME companies maximise their exporting potential.

Addressing the CPA Annual National Conference, Joe Aherne said that data from the EU suggests that only about 25pc of SMEs in the EU-27 are exporters of goods or services.

"This is an incredibly low base and points to a significant economic opportunity for Ireland. There are 200,000 small businesses in Ireland involving over 800,000 people and we need to start actively supporting the internationalisation of our indigenous companies. The prize for success is great and the price of failure is simply too high to pay," he said.

"Evidence shows that when SMEs become internationalised, particularly when they start exporting to foreign markets, their contribution to their home economy increases substantially. We must be innovative and imaginative if we are to recover from our current difficulties and growing our base of indigenous exporters is an obvious target," he said.

Mr. Aherne called on the Government to establish a Business Transformation Programme to help Irish SME's maximise their exporting potential. "Despite the stellar work by Enterprise Ireland and its network of global offices, more needs to be done to assist the many thousands of existing businesses here which are not realising their potential to become exporters. The vast untapped potential of the Irish SME sector to generate new employment and drive our economic recovery is being hampered by the rules governing business support in this country," he said.

According to Mr. Aherne, the Business Transformation Programme should be aimed at established companies which currently do not qualify for assistance under Enterprise Ireland or Enterprise Board programmes but which could have the potential to become exporters if they were given the assistance to implement the necessary changes.

"Many of these businesses are not exporting simply because they don't know how to go about it. The Business Transformation Programme need not be very expensive to establish and operate. In the first instance it could involve a panel of export mentors who would meet with businesspeople and work with them to establish what they need to do to become exporters."

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 11:24:10 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22535</guid>
  
</item>


<item>
    <title><![CDATA[Central Bank warns on investment firm]]></title>
    <description><![CDATA[The Central Bank today published the name of an unauthorised investment firm, Nelson Capital Advisors.

The financial sector watchdog said this firm has been offering investment services to members of the Irish public and is not authorised as an investment firm in Ireland.

It is a criminal offence for an investment firm to operate in Ireland unless it has an authorisation from the Central Bank of Ireland.

It said that consumers should be aware that, if they deal with an investment firm which is not authorised, they are not eligible for compensation from the Investor Compensation Scheme.

Since obtaining the necessary legal powers in August 1998, the names of 214 unauthorised firms have been published by the Central Bank.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 11:20:36 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22536</guid>
  
</item>


<item>
    <title><![CDATA[Euro rises after German economy data]]></title>
    <description><![CDATA[The euro rose today after a German business sentiment survey beat forecasts, suggesting Europe's largest economy is picking up and lessening prospects of further euro zone monetary easing.

The Ifo business climate index rose to 105.7 in May, well above forecasts for 104.5 as it rebounded after two consecutive falls.

The euro rose 0.3 percent on the day to a session high of $1.29875, close to this week's peak of $1.2998 and the mid-May high of $1.3030.

Recent comments from European Central Bank officials had fuelled expectations the central bank could lower interest rates further, even potentially cutting the deposit rate to negative.

"The euro has rebounded on the back of the Ifo data. There were a lot of expectations that the ECB could do more easing and some positive data surprises have taken the pressure off," said Ian Stannard, head of European FX strategy at Morgan Stanley.

ECB easing prospects contrast with speculation the Federal Reserve may scale back its asset purchasing programme if the U.S. economy improves further. Chairman Ben Bernanke said on Wednesday stimulus could be trimmed in one of the bank's next few policy meetings.

The dollar index, which measures the currency's value against a basket of currencies, was down 0.3 percent at 83.535 , off a three-year high of 84.498 hit on Thursday.

The euro rose 0.3 percent to 132.28 yen, having hit a two-week low of 129.945 yen on Thursday when Japanese shares fell 7.3 percent and helped lift the safe haven currency.

The yen, however, remained slightly firmer on the day against the dollar at 101.87 yen, having hit a two-week peak of 100.83 yen per dollar on Thursday

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 10:44:38 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22528</guid>
  
</item>


<item>
    <title><![CDATA[Exporters seek growth stimulus from Govt]]></title>
    <description><![CDATA[Exporters today called for a major growth stimulus package now to avoid long term damage to Ireland's export and economic prospects.

Speaking at the Intrum Justitia European Payment Index 2013 event in the O2 in Dublin, Irish Exporters Association chief, John Whelan, said austerity programmes at home and abroad is dampening demand and needs to be addressed.

"The combination of continuous weak demand across the EU, the high cost of funds and low home consumption is creating an economic and export industry dilemma. Further fiscal consolidation across Ireland and the EU economies will weaken demand, reduce exports and risk permanent loss of productive capacity, particularly in our manufacturing export sector but national debt and industry cost burden will accumulate unless there is consolidation," he said.

The IEA Chief Executive went on to say the long term cost of running the country had to be tackled but that Government had to act now to avoid the risk of permanent damage to Ireland's long term export prospects in the manufacturing sector.

"Manufacturing industry plays a critical role in the Irish economy, as a driver of export growth and offering significant spin off effects for shipping, haulage and a wide range of sub-suppliers but it has been under severe pressure for the past 5 years, with the volume of exports contracting by 10pc since 2008 and job losses of 60,000 in the period," he said.

"The situation has become more critical over the past 6 months, with the return to economic contraction across Europe, and export sales values as well as volume of goods produced falling. Of particular concern is the absence of capital investment, which is at post war low."

He concluded by calling on the Government to look at supporting the 12,800 manufacturing companies across Ireland with new innovative policies including a return to capital investment grant structure to enable increased productivity, and export competitiveness.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 10:34:35 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22529</guid>
  
</item>


<item>
    <title><![CDATA[CRH number 1 in Ireland's Top 100 firms]]></title>
    <description><![CDATA[CRH remain the top performing firm, with a turnover of E18.7 billion, followed once more by Microsoft and Google.

That's according to The Irish Times, in association with KPMG, who today published The Irish Times Top 1000 Companies magazine.

ynga Inc, a provider of social game services, is the fastest moving company, with an increase in turnover of 433 per cent, followed by Facebook, which has jumped 155 places from last year.

The survey is based on the top1000.ie database, which contains key trends, expert analysis, all- island listings and essential contact information, which is updated continuously.

The top five are: CRH with turnover of E18,659bn; Microsoft: E13,712bn; Google: E12,500bn; DCC: E10,690bn and Dell Ireland E9,940bn.

John McManus, Business Editor, The Irish Times, said, "This year's survey, taken with recent positive economic data, indicates that the economy has stabilised and may have turned a corner. Of the 1000 companies surveyed 47 per cent grew their turnover compared with only 28 per cent who reported a decline. Most encouraging was the Construction sector who reported a boost of 41 per cent in turnover figures".

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 10:27:27 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22530</guid>
  
</item>


<item>
    <title><![CDATA[Construction boom to lift German growth]]></title>
    <description><![CDATA[-erman economic growth is expected to increase considerably in the second quarter thanks in part to an "immense" pick-up in construction activity, Ifo economist Klaus Wohlrabe told Reuters today.

He added that the recent 25 basis point interest rate cut by the European Central Bank to a historic low of 0.50 percent has had only a psychological effect in Germany, if at all.

Earlier, the Munich-based Ifo think tank's business climate index for May improved to 105.7 from 104.4 in April, while the German statistics office confirmed that gross domestic product rose by a tepid 0.1 percent in the first quarter over the three months to December.

Construction activity in the first quarter fell 2.1 percent.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 10:19:30 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22531</guid>
  
</item>


<item>
    <title><![CDATA[Cork bakers on the rise after funding]]></title>
    <description><![CDATA[Cork-based Delicious, The Gluten Free Bakery has received investment of E175,000 from private business angel investors, with additional funding also received from Enterprise Ireland, setting it up for growth.

Boole Investment Syndicate, supported by the Halo Business Angel Network (HBAN) and Cork Business Innovation Centre (Cork BIC) took part in the funding that will see the bakers hire additional staff.

Delicious currently employs nine people in Cork and is creating a further nine jobs over the next two years as a result of the investment. Cork BIC co-ordinated this investment round which saw Delicious raise the E175,000 from members of the Boole Investment Syndicate, to support its product line and international expansion.

Delicious was founded in 2007 by Denise O'Callaghan, following her father's diagnosis as a Coeliac. Denise quickly recognised that there was a lack of, good tasting, gluten free food products on the market, despite almost 50,000 people in Ireland alone diagnosed as Coeliac. As a result, she made the decision to leave her job in Dublin and return to Cork where she set up the Delicious Bakery.

Delicious supplies its Gluten free, dairy free, yeast free and wheat free products to Dunnes Sores, Tesco, Supervalu and Aer Lingus among others. With 1 in 100 people in Ireland diagnosed as Coeliac, the company has grown quickly and now is looking to expand its product line and enter the UK market.

Denise O'Callaghan, Delicious Bakery said, "We decided to establish the business in Cork as we have family support here but also, Cork has the highest concentration of Coeliacs in Ireland. The business has gone from strength to strength and we are now in a situation where we have outgrown our current premises and need a larger bakery to facilitate our growth. We also want to look at new markets, such as the UK, which is why we sought investment at this time. The business planning advice we received from Cork BIC when preparing for the investment process was vital.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 09:51:47 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22532</guid>
  
</item>


<item>
    <title><![CDATA[Surprise rise in German business morale]]></title>
    <description><![CDATA[-erman business morale rose far more than expected in May, rebounding after two consecutive falls and suggesting Europe's largest economy is picking up steam after posting anaemic growth in the first quarter.

The Munich-based Ifo think tank said today its business climate index, based on a monthly survey of some 7,000 firms, rose to 105.7 in May from 104.4 in April.

That compared with a median forecast in a Reuters poll of 40 economists for the business climate index to climb to 104.5 and beat even the highest forecast for 105.5.

The data sent the euro higher against the dollar to a session high of $1.2959 and prompted German bund futures to pare gains. (Reuters)

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 09:38:49 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22524</guid>
  
</item>


<item>
    <title><![CDATA[RSA Ireland buys AonInsure business]]></title>
    <description><![CDATA[RSA Insurance Ireland today announced the acquisition of the Personal Lines Insurance business currently managed by AonInsure.ie for an undisclosed sum.

Post acquisition AonInsure.ie's Personal Lines portfolio (primarily Motor and Home Insurance) will be transitioned to RSA's major '123.ie' business.

A statement said that the transaction is consistent with RSA's growth strategy in Ireland and intent to further build its lead positions in targeted General Insurance sectors.

Philip Smith, Chief Executive, RSA Insurance Ireland Ltd notes that the acquisition will further expand its footprint across the market.

"RSA's financial strength and full service capability will allow us to deliver an extended range of RSA insurance product offerings and customer service programmes to AonInsure.ie's Personal Lines policyholders".

"AON, one of the leading global Insurance Intermediaries, currently provides a range of Commercial and Personal lines insurance and Risk Management solutions to customers across Ireland. Post RSA's acquisition of their AON Insure.ie Personal Lines operation, AON will continue to focus on the further growth and development of their extensive Commercial and Risk Management Insurance activities," he added.

Richard Endersen, Managing Director, AON Ireland said; "Our strategic intent is to focus effort on the further development of our Commercial Lines and Risk Management business across Ireland. We are pleased to partner with RSA Ireland in this Personal Lines transaction to ensure continuity and delivery of significant product and service offerings to AON Insure.ie's Motor and Home Insurance customers".

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 09:25:40 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22525</guid>
  
</item>


<item>
    <title><![CDATA[Report shows Irish hotel sector improves]]></title>
    <description><![CDATA[Almost three out of four Irish hotels expect their business to improve in the next three years while more than half saw turnover increase last year.

That's according to a report and survey carried out by Amarach Research on behalf of AIB today which showed renewed optimism in the sector.

The research revealed that a majority of Irish hoteliers are optimistic about the medium term outlook for the sector with (67pc) saying that the tourism sector will improve within the next three years.

A total of 71pc believe the financial performance of their own properties will improve within the same time-frame. The research also revealed that 54pc of hotels saw turnover increase in 2012, with 26pc saying it decreased.

More than 90pc of those surveyed said visitors are more interested in value breaks and special offers and the vast majority of hoteliers surveyed (85pc) said that they had introduced special offers to meet value for money demands.

These findings are according to research carried out by Amarach Research on behalf of AIB. The research forms part of a series of outlook reports for the SME sector compiled by AIB. The second report on the hotel industry is in association with hotel representative organisation, the Irish Hotels Federation (IHF).

The survey also finds that 42pc of hotels have not sought finance from their banks in the past twelve months. Of those who sought finance, 59pc required a change to terms of existing finance or to renew existing finance, with just 12pc seeking a new loan. Looking ahead, just over a third of hotels expect to look for finance from their banks in the next twelve months.

Head of Business Banking at AIB, Ken Burke said: "AIB is wholeheartedly committed to the growth and development of the Irish tourism industry and has enjoyed a long relationship with the hotel sector for many years. AIB has a dedicated hotels team which has been to the fore in developing a wide range of solutions for the sector.
"AIB is producing this series of outlook research reports to help us get to the heart of our business customers needs and challenges within their own sectors from their perspective. This will help us provide more meaningful support to them which we hope will add value to the future success of their business. In addition to this a critical component of AIB's SME strategy is to have dedicated sectorial specialists who understand the various sectors in the SME environment."

CEO of the IHF, Tim Fenn said: "We welcome AIB's support for Irish tourism and in particular for the hotels sector, which has enormous potential to act as an engine of growth and job creation in the economy. This support is critical for hoteliers, who require ongoing access to credit to run their day-to-day businesses, manage cashflow and invest in product upgrades and refurbishment. Banks also have an important role to play in supporting viable hotels seeking to restructure and refinance loans. We are pleased that AIB is committed to engaging in this process."

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 09:20:31 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22526</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ rises-Glanbia examined in detail]]></title>
    <description><![CDATA[The ISEQ is higher morning at 4,049, up 9 points from yesterday's correction as European markets saw an early bounce back but the sustainability of this may well be tested as the morning progresses.

Davy Stockbrokers attended yesterday's Glanbia presentation and brings us some analysis today:

Management articulated the Glanbia story in depth, highlighting the key pillars of the 
group's evolution: commercial scale, core processing skills and a proven capability to 
build, buy and integrate. 

Scale provides competitive barrier to entry in many of its businesses and offers the 
potential for organic growth to accelerate over time. That the two core divisions (global 
ingredients and global performance nutrition) are complementary only supports this 
potential further and can offer portfolio advantages. This was apparent last year when 
the exceptionally strong ingredient technology performance provided a counterweight to 
margin headwinds at Performance Nutrition as WPI prices and international expansion 
costs weighed. 

While the investor day was not designed to provide material new information, there was 
plenty to support the investment thesis that Glanbia can continue to succeed as a key 
B2B and B2C player in the burgeoning nutrition sector. In due course, we will provide 
more considered thoughts on a divisional basis, but for now it is worth highlighting some 
key observations:

- Market leadership positions: Number 1 processor of American-style cheese; 
Number 1 global marketer of whey protein; Number 2 global pre-mix solutions 
provider; and Number 1 global sports nutrition brand family.

- An international company: All four divisions operate internationally. The growth 
opportunity is global. Performance Nutrition is replicating its US success in new 
regions with 30pc of sales now outside the US while US Cheese has a wellestablished export model in place to tap growing demand in South America and 
ASIA-Pacific. Pre-mix Solutions is leveraging its production/technical facilities in 
-ermany, North America and China. Ingredient Technologies now serves 49 
countries from its core North American production base.

- Significant portfolio investment: Internal investment for organic growth across 
all divisions will continue to be a hallmark of the Glanbia model.
There is a clear demand opportunity for Glanbia. Nutrition is playing a key role in our 
lifestyle and dietary choices. With its vertically integrated model, Glanbia is well placed to 
capitalise on this according to Davy Stockbrokers.


<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 08:58:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22527</guid>
  
</item>


<item>
    <title><![CDATA[European stocks bounce back]]></title>
    <description><![CDATA[European shares edged up today, staging a small technical bounce after their biggest one-day fall in nearly a year.

The pan-European FTSEurofirst 300 index was up 0.3 percent at 1,233.38 points while the euro zone blue-chip Euro STOXX 50 was up 0.5 percent at 2,790.65 at 0706 GMT after both indexes closed down 2.1 percent on Thursday.

Investors were spooked by speculation that the U.S. Federal Reserve could roll back its hefty asset-purchase programme, which had helped the Euro STOXX 50 rally 11.5 percent in just over a month.

But the Euro STOXX 50 bounced off a technical support in the 2,750 area, corresponding to its March's high, on Thursday, leading traders to bet there was still buying momentum and the recent uptrend could resume.

"The drop yesterday was a bit scary," Valerie Gastaldy, head of technical analysis firm Day-By-Day, said. "But my advice to clients is that we shouldn't panic and we should try to buy." ( C ) Reuters

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 08:33:57 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22521</guid>
  
</item>


<item>
    <title><![CDATA[Roundup-Repossessions inevitable]]></title>
    <description><![CDATA[The prospect of industrial action in schools in the autumn increased last night after the executives of two teaching unions effectively rejected the proposed new public service deal, now known as the Haddington Road Agreement.

The Association of Secondary Teachers Ireland (ASTI) and the Teachers Union of Ireland (TUI) said that the proposals, which were drawn up earlier this week and published yesterday, did not go far enough.
The unions said the revised document "does not represent sufficient change from the original proposals" (then known as the Croke Park II proposals) which were rejected in a ballot last month.
The Irish Times

XXXX

In an unusually forceful statement yesterday, the governor of the Central Bank and head of the financial regulator Patrick Honohan told a conference that "non-cooperative mortgage borrowers really are at risk of losing their homes . . . repossession is an available option for the lender. It would be unwise to imagine it otherwise. If the banks were unable to make repossessions then the incentive for the borrower to cooperate would be greatly weakened".

In a frequently made criticism of the banks, the governor said "mortgage lenders need to address the problem of non-performing mortgage debt more energetically. The time for passivity is long past".
Among the most needed actions by the banks, he said, was identifying those who can't pay their mortgages from those who are "merely reluctant to pay".
The Irish Times

XXXX

Aer Lingus has told pilots at the airline that it will not pay incremental increases that were due last month.
It is understood that management at the company has told pilots that it would not make any adjustment to pay rates pending completion of talks both on dealing with significant financial difficulties in their pension scheme and in relation a general review of remuneration which is currently under way under the chairmanship of senior counsel Gerry Durcan.

The overall cost-containment plan at Aer Lingus, known as "Greenfield" ended late last year and it is understood that pilots' representatives argued that the payment of increments should have taken place at the beginning of April.
The Irish Times

XXXX

The former mission chief for the International Monetary Fund in Ireland, Mr Chopra told a conference in Dublin that the IMF favoured the direct recapitalisation of the banks if necessary.

Analysts are growing increasingly concerned that Irish banks are going to need even more capital in order to cover losses from the number of mortgages that are either in arrears or in default.
The Irish Independent

XXXX

Easyjet confirmed it has agreed to buy 25 slot pairs from Flybe for Â£20m (E23.3m), with the transaction subject to approval from Flybe shareholders.

Ryanair chief executive Michael O'Leary confirmed this week that the airline had submitted a bid to buy the Flybe slots at Gatwick, which is Easyjet's biggest base. Ryanair's biggest base is Stansted, and it's about the fourth biggest operator at Gatwick.

Mr O'Leary said that the Gatwick slots that had been put up for sale were attractive.

"We've submitted a bid to Flybe for the slots and I think it would be a material opportunity for us there," he said.
The Irish Independent


<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 08:17:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22522</guid>
  
</item>


<item>
    <title><![CDATA[Wait for inflation before removing QE]]></title>
    <description><![CDATA[A top Federal Reserve official said today U.S. inflation would have to pick up before he voted to scale back monetary policy stimulus and that this was unlikely to happen in the coming month.

"Before I would be in favour of tapering I would like to see some reassurance that inflation was going to move back towards target," St. Louis Fed President James Bullard said in a CNBC interview.

"I am concerned about this inflation number and we are only a little ways out from the June meeting so I don't quite see how that is going to turn around in a few weeks."

Fed Chairman Ben Bernanke said on Wednesday the U.S. central bank may at one of its next few policy meetings begin to trim its bond purchases from the current pace of $85 billion a month.

Those comments sparked gyrations across financial markets.

Asked about this market volatility, Bullard said big price swings had mainly been seen in Japanese markets and that it was understandable given the pace of the Nikkei's gains in the past six months.

"I wouldn't be surprised with that kind of action over that kind of time period that you are going to get some volatility," he said
( C) Reuters


<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 07:56:39 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22523</guid>
  
</item>


<item>
    <title><![CDATA[Bruton announces 100 new jobs]]></title>
    <description><![CDATA[
 p to three companies are set to create more than 100 new jobs over the next three years as part of a E4 million injection from four investors.
The companies, which operate in the technology and manufacturing sectors, are based in Dublin and Galway.
Cublic Telecom, based in Dublin and specialising in global connectivity, will create more than 70 jobs.

VoiceSage, which specialises in automated customer service telecommunications technology, will create ten jobs over the next two years using a E1 million investment.
In Galway, up to 34 positions will be created between now and 2016 through a E2.4 million investment at Advant Medical, a manufacturing company supplying the medical devices sector according to RTE News.

Minister for Jobs, Enterprise and Innovation Richard Bruton said a crucial part of the Government's jobs and growth plan was to support a strong engine of Irish enterprise through companies like the ones announcing expansion today.

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 07:33:34 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22516</guid>
  
</item>


<item>
    <title><![CDATA[Oil futures to post record falls]]></title>
    <description><![CDATA[Crude futures are set to post their biggest weekly loss in five weeks, with Brent edging down toward $102 per barrel today, as ample supply and a slow global economic recovery fuelled worries that demand for oil would be hit.

Crude inventories in the United States are near record levels as the world's top oil consumer produced more from shale, while shrinking factory activity in China capped fuel demand growth at the world's No.2 user.

Improved U.S. jobs and home sales data also sparked worries that the Federal Reserve could soon scale back bond purchases and tighten liquidity in markets.

Brent slipped 8 cents to $102.36 by 0431 GMT, stretching its losses into a fourth session. U.S. crude inched down 29 cents to $93.96 a barrel.

Both were on track for a more than 2 percent drop this week - their biggest weekly drop since mid-April.

"There is a lot of supply. Inventories are high in the U.S. and I don't expect a big increase in demand from China," said Ken Hasegawa, a commodity sales manager at Newedge Japan.

"Oil still has some room to fall further. It's possible for Brent to fall to $95 within the next two months."

Brent hit a three-week low on Thursday after a survey showed that China's factory activity shrank for the first time in seven months in May, stoking worries over the demand outlook for commodities.

Investors are looking for a rebound in China's economic growth in the second half of the year that could lift the outlook for fuel demand.

"We expect China's quarter-on-quarter GDP growth to accelerate in the rest of this year, although year-on-year growth could come in flat or even fall," Bank of America Merrill Lynch economists said in a note.

The oil market is now eyeing the U.S. driving season which starts this weekend for indications on demand.

Traders have cautioned that there is more than enough gasoline to meet seasonal demand. U.S. gasoline stockpiles last week were close to the highest level for this time of the year since 1999, government data showed.

 nlike before, gasoline demand is also not expected to rise spectacularly as vehicles are becoming more fuel efficient, Hasegawa said.
( C ) Reuters


<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 07:29:06 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22517</guid>
  
</item>


<item>
    <title><![CDATA[Higher real wages in Germany give boost]]></title>
    <description><![CDATA[Higher real wages have German consumers feeling more inclined to spend than at any point since the U.S. subprime crisis, further boosting German recovery hopes and brightening the outlook for the euro zone.

Europe's largest economy barely eked out growth in the first quarter thanks almost exclusively to consumer spending, which looks set to get a further boost after Germany's largest industrial sector agreed to dole out a hefty pay hike.

Market research group GfK said on Friday its forward-looking consumer sentiment indicator that is based on a survey of around 2,000 Germans rose for the six straight month to 6.5 going into June, up from 6.2 in May.

This is the highest reading registered since September 2007, shortly after German provincial bank IKB made headlines as the country's first lender to fall victim to the subprime crisis after it lost hundreds of millions of euros on dodgy U.S. mortgage bets.

According to the system used by the GfK, the June index level implies a year-on-year growth in German private consumption of 0.65 percent.

"A high level of employment, good wage hike deals and sinking inflation are supporting the good sentiment," it said in a statement, adding the current accommodative monetary policy in the euro area was fuelling demand.

"The low propensity to save, which reached a new record low in May, is also helping. This is most probably traced to the decision by the European Central Bank to lower interest rates once more to spur growth."

Detailed data published for May also showed a perceived improvement in the economic outlook among consumers as well as a strong increase in wage expectations.

-ermany's 3.7 million workers employed in the engineering industry, which includes blue chips like Siemens and Daimler, struck a deal earlier this month to receive 5.6 percent more pay through the end of next year.

Rising incomes and a greater willingness to spend money rather than save should help encourage governments in troubled southern European countries, which desperately need to rebalance their trade with Germany and regain competitiveness lost to their Teutonic neighbours.

Economic activity in the euro area during the three months to March contracted for a record sixth straight quarter, shrinking by 0.2 percent as unemployment rose to an all-time high 12.1 percent and France slid into a recession.
( C) Reuters


<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 07:21:02 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22518</guid>
  
</item>


<item>
    <title><![CDATA[Futures point to European rebound]]></title>
    <description><![CDATA[European stock index futures pointed to a rebound today as bargain hunters move in following the previous session's sharp sell-off.

At 0603 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were up 0.1-0.5 percent.
( C) Reuters


<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 07:16:24 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22519</guid>
  
</item>


<item>
    <title><![CDATA[Why is China's bubble different to Ire.]]></title>
    <description><![CDATA[While it is generally acknowledged that the Chinese property market is seriously overvalued there is little agreement about the solution in China or indeed throughout Asia which is also "suffering" from a similar phenomenon by way of a spill-over from the largest economy in the region.

Classically in a bubble only one thing can happen, the market must correct itself and as Irish people know to their cost the correction can be a very painful process indeed. The Chinese property market could be overvalued by as much as Ireland's was ie 50 to 60 percent so are the Chinese just waiting for the inevitable collapse or are they taking real steps to stop the rot before it destroys their economy which is still growing at a rate of around 6 percent.?

The answer is complicated, in that they are taking action but their actions may not be enough to forestall the inevitable. Firstly we can look at the solutions already implemented but before that it is important to stand back for a moment and look at the fundamental differences between Chinese society and that which prevailed in the West prior to the collapse. The Communist Party is the essential difference and the level of control it can exercise over the economy is beyond anything we can imagine in the West.

If the Party is so all-powerful why has it let the situation get to this point before taking the necessary steps to curtail rampant property speculation and unhelpful lending by the Banks.? The answers are about vested interests and the Party is no different in that respect than the populist actions of previous Irish Governments. Lots of Chinese people have purchased 2nd and more properties by way of investments and as retirement nest eggs. People on the streets will tell you that Party members and the higherarchy in it have vast portfolios of property throughout China. If an internal audit was done on the Communist Party we would discover that it's higher levels are full of property owners, some on a grand scale. Just look at the billions that the former Premier and his family were worth at the point of his recent departure from power. Don't hold your breadth on that audit!

There are other vested interests, Local authorities sell land to developers throughout China and as part of the deal, the developers pay the Authority a levy, which like Ireland is often sweetened with a few apartments in each development. These apartments are often then allocated to employees or local Party supporters. Local Authorities who own vast numbers of properties also use the sale of same to finance other projects in the region. You can see that a 60 percent drop in values would hurt a lot of important people so The Government has come up with another set of solutions.

At a basic level they have imposed a property tax. The tax is small for your first house but rises sharply for subsequent homes. This was something we could have done before all hell broke loose in 2007. The most this action can hope to achieve is to hold prices at their current inflated levels so how will the correction be controlled in the medium term?

Chinese wages are rising at an expediential rate and from 2009 to 2012 Chinese labour costs rose by 64 percent. The new Premier has promised to achieve a further doubling of incomes up to 2020. Chinese wages are now the highest in the region. Vietnamese wages, by comparison have risen in the same period by around 20 percent. Therein lies the medium term solution for China. Property prices may hold current levels however wages will rise to meet the inflated prices and so the bubble is not so much burst as the wind is released over time.

It's a risky strategy in that if Chinese wages become uncompetitive with others in the region the long-term prognosis becomes a lot less pleasant for the World's 2nd largest economy. It is in all our interests that the Party strategy is a success.

Report by Cathal O Dubhain

<br/>]]></description>
    
    <pubDate>Fri, 24 May 2013 07:09:54 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22520</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ falls on US stimulus fears]]></title>
    <description><![CDATA[The ISEQ fell today in line with global equities and commodities as the US Fed cast doubts about its long-term commitment to economic stimulus.

The index fell 27.95 points to 4,040.77.

Bernanke told a congressional committee that the central bank could scale back the pace of bond purchases at one of its next few meetings, spooking investors who feared an early end to U.S. stimulus could jeopardise the global economic recovery. The Euro STOXX 50 Volatility Index - a crude gauge of investor fear - surged 18 percent to a three-week high.

CRH shares fell 15c to E16.38. Yesterday Lowes reported Q1 earnings of $0.49 which was slightly behind forecast of $0.51. Reflecting the impact of adverse weather lfl sales were down 0.7pc, which was behind Home Depot for the ninth consecutive quarter. Management reiterated guidance of lfl sales growth of 3.5pc and earnings of approximately $2.05 (consensus of $2.09).

Kingspan dropped 19c to E9.25. Rockwool reported Q1 EBITDA of DKK414m, up 1pc on last year but behind consensus of DKK442m. As with other European companies, the variance is driven by the top line with sales down 3pc yoy (-8pc Western Europe, +3pc CEE/Russia and +12pc RoW) to DKK3,145m (3pc behind consensus) reflecting the well documented adverse weather. Despite the slower start to the year, management has reiterated guidance for sales to increase slightly and PAT of around DKK700m (consensus is still above DKK800m).

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 17:39:39 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22514</guid>
  
</item>


<item>
    <title><![CDATA[Pension won't have to match bank cap]]></title>
    <description><![CDATA[Pension funds in the EU will not be required to increase their capital in the same way as banks and insurers will have to, under draft rules due later this year, the EU's top regulatory official said today.

Michel Barnier, the European commissioner in charge of financial regulation, said he would propose pension fund legislation in the autumn which would focus on governance, transparency and reporting requirements but "will not cover the issue of solvency rules for pension funds."

Such rules could be considered in the future, he said.

Britain, Germany and the Netherlands were among the countries that had urged the European Commission not to force retirement funds to hold additional capital.

The commission decided on a softer approach in order to avoid hampering pension fund investment and possible knock-on impacts on the economy, an EU official said.

Banks and insurers are being obliged to hold capital reserves in strict proportion to the risks they take on.

Jerry Moriarty, CEO, Irish Association of Pension Funds, welcomed the news.

"We welcome the fact that the European Commission has postponed stricter solvency rules for pension schemes across Europe that could have resulted in more Irish Defined Benefit schemes being forced to wind-up, slashing the pension benefits of many workers and dashing their hopes for a comfortable retirement," he said.

"We would hope that the Irish Government and the Pensions Board takes a lead from the European Commission's decision to defer their plans bring in additional solvency measures at this time and reconsider the introduction of risk reserving. Indeed it is ironic that the Irish Government opposed the Commission's plans for additional measures because of the damage it would do to defined benefit schemes in Ireland, yet has continually deferred initiatives to support the continuation of such schemes in Ireland."

"Commissioner Barnier's comments about supporting rather than punishing schemes will be a welcome message for the trustees of struggling Defined Benefit pension schemes in Ireland and their wish would be that the Irish Government would follow suit."

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 17:17:37 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22515</guid>
  
</item>


<item>
    <title><![CDATA[US call on EU to prevent stagnation]]></title>
    <description><![CDATA[The United States today called on Europe to act decisively to boost its economy and counter the risk of a protracted stagnation that would undermine economic growth in America.

"Decisive action is needed now to restart demand and avoid the risk of protracted stagnation," U.S. Treasury Under Secretary Lael Brainard told U.S. lawmakers.

Speaking for the administration of President Barack Obama, Brainard said Europe should rethink a broad push toward fiscal austerity, saying some countries should be given more time to get their budgets in order. She said countries with more "fiscal space" should shift toward boosting growth in their economies.

"The focus of the policy debate in Europe must now shift from restoring financial stability to developing a plan to boost demand and employment," Brainard told the Senate Foreign Relations Committee.

Brainard said Europe's strongest exporters had a special role to play in stimulating demand, and called on countries running current account surpluses in excess of 6 percent of their economic output to quicken wage growth and encourage greater homeownership.

Current account balances are a broad measure of the flows of goods, services and capital across borders.

Brainard added that Europe was depending too much on exports as a way of supporting its economy. "That is not sustainable," she said. (Reuters)

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 16:34:33 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22511</guid>
  
</item>


<item>
    <title><![CDATA[Cork firm wins E7m UK contract]]></title>
    <description><![CDATA[Clonakilty-based, Ion Equity-owned tech firm, SouthWestern, has won a contract in the UK worth E7m.

The contract is for an electronic movement reporting system and accompanying database for sheep, goats, and deer in England. It's planned to have the database, which will replace the current paper-based system for movement controls, fully operational by April 2014.

The contract, which is for five years is understood to be worth over E7m euro. It will lead to the creation of up to 20 jobs at SouthWestern Business Process Services (UK) Limited which is based in Bedfordshire, near Luton. Much of the work, however, will be done in SouthWestern's base in West Cork.

SouthWestern CEO Jim Costello said the Company was looking to build its presence in a number of areas in the UK and this contract win was an important step forward.

"Clearly we have a lot of experience in this area and we are looking forward to working with Defra. The outsourcing sector in the UK is worth E241 billion a year and employs over 3 million people. So there are huge opportunities in the UK for Irish firms like SouthWestern and we are looking forward to winning more of that business".

A spokesman for Defra said SouthWestern had put forward the most effective and affordable database. "The new sheep database will help us keep a tight control over the spread of animal disease in England. This new system will be simpler and will save farmers and taxpayers over Â£7m over the next 10 years."

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 16:18:26 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22512</guid>
  
</item>


<item>
    <title><![CDATA[Wall St falls on stimulus plan unease]]></title>
    <description><![CDATA[.S. stocks dropped today, with the S and P 500 on pace for its first back-to-back daily drop in a month amid investor concerns the U.S. Federal Reserve's stimulus may be scaled back sooner than hoped and after weak data in China.

The S and P 500 had posted its biggest decline in three weeks on Wednesday after minutes from the latest U.S. Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting.

The minutes came in the wake of comments earlier in the session by Fed Chairman Ben Bernanke, who said the Fed could scale back the pace of its bond purchases at one of the "next few meetings" if the economic recovery looked set to maintain forward momentum.

Adding to selling pressure, China's flash HSBC Purchasing Managers' Index for May fell to 49.6, slipping under the 50-point level which indicates expansion for the first time since October. That raised concerns the recovery in the world's second-largest economy has stalled and a sharper downturn may be on the horizon.

"We are kind of in a situation where all news is bad news in a way when the Fed starts to talk," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

"They are pretty well maxed out ... so you are kind of here waiting on the end game."

Separately, data in Europe showed that while the downturn across euro zone businesses eased slightly in May, the bloc's economy is likely to contract again in the second quarter.

In a bright spot, the number of Americans filing new claims for unemployment benefits dropped 23,000 to a seasonally adjusted 340,000, slightly better than expectations for a decline to 345,000, a report showed.

But U.S. manufacturing slowed for a second straight month in May, as the Markit Purchasing Managers Index fell to a seven-month low of 51.9 in May from 52.1 the previous month.

The benchmark S and P index has jumped 15 percent since the start of the year, boosted by slowly improving U.S. economic data and stimulus measures by central banks around the globe.

The Dow Jones industrial average lost 84.71 points, or 0.55 percent, to 15,222.46. The Standard and Poor's 500 Index dropped 12.64 points, or 0.76 percent, to 1,642.71. The Nasdaq Composite Index fell 20.71 points, or 0.60 percent, to 3,442.59.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 15:59:07 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22513</guid>
  
</item>


<item>
    <title><![CDATA[One51 get extension on E115m debt]]></title>
    <description><![CDATA[Investment group, One51 today said that it has reached agreement with its existing syndicate of six banks to extend a E115 million banking facility to the Group out to 31 December 2014.

The extension of the Group's banking facilities ensures that One51 has appropriate financial flexibility as it continues to reduce leverage to a sustainable level, in line with the two year plan outlined to shareholders in 2011, a company spokesman said.

Late last year, One51 sold plastic extrusion business Enplast and its 4.4 per cent stake in e-learning business Thirdforce, as part of the company's ongoing rationalisation process.

Some E5 million was raised from the divestments and was used to pay down debt, chief executive Alan Walsh said at the time.

the investment group founded by businessman Philip Lynch has been divesting of assets since the departure of Mr Lynch from the company in 2011 in a bid to pay down debt.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 15:44:34 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22508</guid>
  
</item>


<item>
    <title><![CDATA[EU backs French in US trade deal talks]]></title>
    <description><![CDATA[European Union lawmakers voted today to limit the scope of a proposed free-trade deal between Europe and the United States, backing French demands to leave out culture and potentially irritating Washington.

The European Parliament, which can veto EU trade accords, voted 460 in favour and 105 against with 28 abstentions to limit Brussels' room for manoeuvre in talks on a deal that would encompass almost half the world's economic output.

"It is crucial not to consider culture as a pure commodity," said Helga Truepel, a member of the parliament from the German Greens party.

Although non-binding, the parliament's vote provides support for French demands to exclude the cultural sector from a deal. It will likely establish the parameters of the EU's negotiating mandate, which will be finalised on June 14.

EU-U.S. negotiations are expected to start in July and to take two years.

Washington and Brussels say the broadest deal possible is the best way to unleash billions of dollars in new business, and EU trade chief Karel De Gucht told lawmakers in the parliament on Wednesday that he needs flexibility to win U.S. concessions.

.S. lawmakers say they will not support a deal unless it tears down barriers that have long blocked U.S. exports. One U.S. official said the talks risked "death by a thousand cuts" if a policy of tit-for-tat exemptions were to take over.

France's Trade Minister Nicole Bricq welcomed the European Parliament's vote but said she wanted to see public procurement for defence contracts exempted too, something De Gucht wants to include in the talks.

De Gucht and EU ministers cannot ignore the European Parliament. Last year an overwhelming majority of its lawmakers vetoed ACTA, an international trade agreement intended to clamp down on fake goods and illegal Internet downloading.

France, Europe's second largest economy, has threatened to block the start of U.S. talks unless it retains a "cultural exception" that allows the government to limit foreign programmes on French airwaves and to subsidise French films.

French Culture Minister Aurelie Filippetti sent a letter to EU lawmakers on Wednesday calling on them to back exempting culture from the talks, and said France has the support of other EU member states.

France's support for a transatlantic deal is crucial. A British push for an EU-U.S. trade agreement collapsed in the 1990s in the face of French resistance.

Creative industries in other European countries have also lobbied against including culture in trade negotiations, fearing that a deal would allow U.S. filmmakers to take advantage of shrinking European cultural subsidies, for example.

"We have fought laboriously to create humane working conditions for our writers, but that is now in peril," said Jochen Greve, a screenwriter for the German TV show Tatort.

De Gucht supports leaving cultural subsidies out of any pact. He wants to leave room for talks on digital technology but the French and lobbyists in the creative sector say this could still unfairly benefit American companies. (Reuters)

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 15:17:16 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22509</guid>
  
</item>


<item>
    <title><![CDATA[Apple near tax free in Ireland since 80s]]></title>
    <description><![CDATA[Apple has operated almost tax-free in Ireland since 1980, welcomed by a government keen to bring jobs to what was then one of Europe's poorest country, former company executives and Irish officials have said.

Chief Executive Tim Cook faced criticism from a Senate subcommittee in Washington on Tuesday over the iPad and iPhone maker's tax practices, which had been shrouded from full view behind secretive tax-exempt Irish-based corporate entities.

Apple, one of Ireland's top multinational employers, denied avoiding billions of dollars in U.S. taxes and said its arrangements helped fund research jobs in the United States.

The committee revealed that Apple's Irish companies, which are not tax resident in any jurisdiction, allowed the group to pay no tax on much of its overseas earnings in recent years.

Senator Carl Levin, chairman of the subcommittee, said Apple had sought "the Holy Grail of tax avoidance".

A former company executive and Irish officials told Reuters the almost tax free status dates all the way back to Apple's arrival in County Cork 32 years ago.

Apple must have seemed attractive to Ireland and to Cork. Amid a generally moribund Irish economy, Cork had been hard hit by the closure of its shipyards and a Ford car plant and in 1986 nearly one on four were out of work in the city.

In the early days, Apple's staff sat down to meals together. Now the company employs 4,000 in Ireland and is the country's biggest multinational employer.

"There were tax concessions for us to go there," said Del Yocam, who was Vice President of manufacturing at Apple in the early 1980s. "It was a big concession,"

In fact, the deal was about as good as a company can get.

"We had a tax holiday for the first 10 years in Ireland. We paid no taxes to the Irish government," one former finance executive, who asked not to be named, said.

Apple wasn't an exception, although it was among the last to enjoy such favourable treatment. From 1956 to 1980, Ireland attracted foreign companies by offering a zero rate of tax, according to the Irish government's website. Eligible companies arriving in 1980 were given holidays until 1990.

"Any multinational attracted into Ireland that was focusing on the export market paid zero percent corporation tax," said Barry O'Leary CEO of IDA Ireland, which is charged with attracting investment into Ireland.

Apple said it pays all the tax due in every country where it operates. It declined to comment on the tax treatment it received in the 1980s.

As part of Ireland's accession the European Economic Community, precursor to the European Union, in 1973, it was forced to stop offering tax holidays to exporters.

From 1981, companies arriving in Ireland had to pay tax, albeit at a low 10 percent rate, providing they qualified for manufacturing status.

Apple's investment was a major coup for Ireland. At the time, the country was struggling with high and rising unemployment, double-digit inflation and a brain drain of the young and educated through emigration.

"We were the first technology company to establish a manufacturing operation in Ireland," recalled John Sculley, Apple's CEO from 1983 to 1993. He said government subsidies had also played a role in deciding to set up a base in Ireland.

Ireland also offered low wage rates - a big attraction when it came to hiring hundreds of people for the relatively low skilled work of assembling electronic equipment.

Apple told the subcommittee it could not answer questions about why it chose Ireland as a base since it had lost the paperwork from the period.

The operation in Cork built the company's Apple II computer and would later build disc drives, 'Mac' computers and others. These would be sold in Europe, the Middle East, Africa and Asia.

But having a tax holiday in Ireland would not, in itself, have allowed Apple to operate tax free in these markets.

Equipment assembly is not the kind of activity that economists or tax authorities usually credit with generating a large share of a technology company's profits.

More value has been associated with generating the intellectual property behind the technology - which Apple did in the United States - and with the selling of goods, which was to be done on the ground in France, Britain and India.

But none of these countries offered the tax advantages Ireland did. The key to minimising Apple's tax bill was maximising the amount of profit that could be ascribed to Apple's Irish operations.

This task fell to Mike Rashkin, Apple's first tax director, two executives from the period said. One called him "the father of it all".

Rashkin arrived at Apple in 1980, from computer pioneer Digital Equipment Corp (DEC) in Massachusetts, where he had learnt about tax efficient corporate structuring in tech companies.

Apple had already decided to establish its base in Ireland when Rashkin moved to Silicon Valley, but he used his experience at DEC to set up a tax structure that took advantage of Apple's base in the country, the executives said. Rashkin declined to comment.

The Senate subcommittee's report reveals how the arrangement was structured. In 1980, Apple entered into a deal with its Irish operation, whereby the latter would share the cost of funding Apple's research and development. In return, the Irish unit would be able to enjoy rights to Apple intellectual property for goods sold outside the Americas.

Apple secured the blessing of the U.S. tax authority, the Internal Revenue Service, for the deal, one executive said. The IRS gave Apple an advance pricing agreement, or APA, an agreement which establishes how the IRS will treat a transaction between affiliates for tax purposes, before it is entered into.

Many countries' tax authorities offer APAs and companies say they are necessary to facilitate international trade and investment. Tax campaigners say tax authorities have been too ready to accept the pricing proposed by companies which apply for APAs.

The New York Times reported last year that Apple's low taxes were at least in part due to the confidential technology transfer arrangement.

The terms of the deal and subsequent cost-sharing deals, were favourable for Apple's Irish unit. In effect, the Irish unit paid much less to its U.S. parent, for the use of Apple intellectual property, than it made from selling that property on to affiliates.

"Apple's cost sharing agreement (CSA) with its offshore affiliates in Ireland is primarily a conduit for shifting billions of dollars in income from the United States to a low tax jurisdiction," the subcommittee's report said.

Meanwhile, Apple also constructed a system whereby the affiliates which were actually selling the finished equipment would earn minimal profits.

The techniques Apple used over the years included selling goods to affiliates at prices which generated little profit at the retail level, or by paying sales affiliates commissions which are just about enough to cover their operating costs.

Rashkin's work and Ireland's accommodating approach had the desired result for Apple.

"We're very, very pleased," Apple's then-President A.C. 'Mike' Markulla said in 1981. "The Irish have really lived up to their promises."

Indeed, the accounts for Apple's main Irish unit, then known as Apple Computer Inc. Ltd, for 1989, the earliest year for which detailed accounts were filed, show exactly how effective the arrangement was.

The subsidiary paid $500,000 in income tax on profits of $317 million, a rate of 0.2 percent.

In 1990, Apple's tax holiday came to an end, and in that year, the Irish operation's tax rate hit 4 percent, accounts from the period show.

At the same time, Apple's Irish manufacturing activities came under question as the company looked to cut costs by outsourcing. In 1992, the company announced plans to cut hundreds of jobs after deciding to shift some work to Singapore, which at this time was attracting increasing investment by offering tax holidays.

"They nearly left Ireland altogether," O'Leary said.

By this stage, the European Community had banned tax holidays of the kind given to Apple, so the company and the Irish Government negotiated an arrangement which

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 15:07:31 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22510</guid>
  
</item>


<item>
    <title><![CDATA[Honohan talks of ending arrears crisis]]></title>
    <description><![CDATA[The "wait and see" what happens period for solving the huge problem of mortgage arrears is now long over and now is the time to implement solutions, the Central Banbk Governor, Patrick Honohan, said today.

Speaking at a conference hosted by UCD and NUI Maynooth in Dublin, Mr Honohan said significant numbers of soured mortgages may be able to come "back on track" if the right solutions are employed.

He said the idea of a split mortgage which allows borrowers to service only a portion of their debt at least on a temporary basis, could be "fleshed out" to reduce debt burdens and allow people to stay in their homes.

He added that negative equity alone is not sufficient reason for banks or the taxpayer to implement debt solutions.

"Despite the anger and disappointment felt by so many who have suffered a financial loss from housing investments, permanent debt relief is not something that can be offered to all, but has to be limited to those who are truly over-indebted to the point of insolvency. In particular, despite the fact that households in negative equity do seem to be over-represented among the arrears cases, negative equity is not in itself a viable rationale for providing debt relief," he said.

He said split mortgage arrangements could not be considered sustainable if, at the end of the mortgage term, the outstanding or "warehoused" amount due to the bank was still greater than the value of the property.

"The modification agreement should specify that, at the end of the term, any shortfall in the warehouse after sale of the property would no longer be owed," he said.

Mr Honohan said one of the inherent difficulties with the split mortgage approach was that it was difficult to structure the arrangement in such a way that the bank was entitled to a higher level of repayment in the event that the borrower's financial situation improved without this acting as a disincentive to borrowers.

"The triage process needs to start with the question: is this a distressed case, or one in which the borrower does have the capacity to come back on track?'' Mr Honohan said.

Mr Honohan said it would be "unwise" for anyone to think that not paying their debts is a matter of choice and he warned that non-cooperative mortgage borrowers "really are at risk of losing their homes".

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 14:45:39 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22505</guid>
  
</item>


<item>
    <title><![CDATA[Govt publish pay Bill after LRC talks]]></title>
    <description><![CDATA[The Government has published approved text of new legislation to give effect to the draft agreements arrived at during the recent LRC process.

Legislation is needed if direct pay reductions are to be applied to the pay of any group of public servants, including officeholders such as members of the Government, of the Oireachtas and of the judiciary, and to the pensions in payment of former public servants. Legislation is necessary regardless of whether the proposed reductions are the subject of agreement with the public service unions and associations.

The legislation also confirms the Government's ability to make the necessary savings should collective agreements not be reached with the unions, by setting out a number of contingency measures.

The legislation will be debated before the Houses next week, to ensure that it will be operational in time to secure the necessary savings to the 2013 pay and pensions bill.

The legislation makes provision for the Government's preferred option which is to reach agreement with its employees by allowing for exemptions from the terms of the Bill relating to increments in the event of a collective agreement being lodged with the LRC.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 14:23:55 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22506</guid>
  
</item>


<item>
    <title><![CDATA[Food sector polarised by Hybrid Consumer]]></title>
    <description><![CDATA[The Irish food sector is becoming increasingly polarised by the Hybrid Consumer - where shoppers opt for the lowest priced staples and then splash out on high-end luxury foods with the money saved.

The rise of this 'hybrid consumer' is an emerging trend with significant implications for food companies, food retailers and food service companies, according to a new report from Rabobank entitled 'The rise of the hybrid consumer'.

It said that consumers are becoming less interested in mid-market products and are instead trading down when it comes to everyday value-for-money items, such as basic groceries.

sing money saved by trading down on staples, hybrid consumers are trading up to premium, high-end products that matter most from an emotional and social perspective, such as premium brands in supermarkets and fine dining. As a result of this trend, the food retail sector will become increasingly polarised into value and premium, with middle ground players struggling to retain market share.

Marc Kennis, Senior Analyst, Rabobank Food &amp; Agribusiness Research and Advisory, commented: "The implications of this market trend are profound and touch on areas such as product offerings, distribution channels, marketing and brand management. Given the driving forces of hybrid consumption, i.e. women's increasing role in household spending and the growing importance of Millennials (generations Y and Z), we believe that hybrid consumption is a long lasting phenomenon. Therefore food processors, food retailers and food service companies alike will need to adapt or risk fading away."

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 14:17:24 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22507</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ falls in line with global markets]]></title>
    <description><![CDATA[The ISEQ fell sharply this morning in line with global equities and commodities as the US Fed cast doubts about its long-term commitment to economic stimulus.

The index fell 43.82 points to 4,024.90.

Bernanke told a congressional committee that the central bank could scale back the pace of bond purchases at one of its next few meetings, spooking investors who feared an early end to U.S. stimulus could jeopardise the global economic recovery. The Euro STOXX 50 Volatility Index - a crude gauge of investor fear - surged 18 percent to a three-week high.

CRH shares fell 12c to E16.41. Yesterday Lowes reported Q1 earnings of $0.49 which was slightly behind forecast of $0.51. Reflecting the impact of adverse weather lfl sales were down 0.7pc, which was behind Home Depot for the ninth consecutive quarter. Management reiterated guidance of lfl sales growth of 3.5pc and earnings of approximately $2.05 (consensus of $2.09).

Kingspan dropped 24c to E9.20. Rockwool reported Q1 EBITDA of DKK414m, up 1pc on last year but behind consensus of DKK442m. As with other European companies, the variance is driven by the top line with sales down 3pc yoy (-8pc Western Europe, +3pc CEE/Russia and +12pc RoW) to DKK3,145m (3pc behind consensus) reflecting the well documented adverse weather. Despite the slower start to the year, management has reiterated guidance for sales to increase slightly and PAT of around DKK700m (consensus is still above DKK800m).

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:59:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22504</guid>
  
</item>


<item>
    <title><![CDATA[UK regulator fines JP Morgan Stg3m]]></title>
    <description><![CDATA[Britain's Financial Conduct Authority (FCA) said it has fined a wealth management unit of U.S. bank JPMorgan Chase 3.08 million pounds for being unable to show it was giving clients the right advice.

The FCA said today the failings were not corrected until the watchdog brought them to the bank's attention in the course of its wider review of wealth management firms in Britain.

"No matter who they are, customers of wealth managers should be able to expect the firm to keep complete, up to date client records so that they can give the right advice," the FCA's director of enforcement, Tracey McDermott, said in a statement.

"In this case the firm did not have complete records, nor did its management have the information they needed to recognize this," she said.

The FCA said the failings persisted over two years, exposing customers to the risk that they would be given the wrong advice and inappropriate investments though no actual harm to customers has been identified to date.

After the failings were pointed out the bank took "prompt action" to improve its systems and undertake a significant overhaul of how it assesses if investments are suitable for customers, the watchdog said.

An independent review of 25 customers found "significant gaps" in the information the bank had on 22 of them, such as how much risk the customer wanted to take on.

JPMorgan, whose fine was cut by 30 percent due to an early stage settlement, said it has fully cooperated with the FCA and has enhanced its procedures to ensure they comply with required regulations.

The FCA is due to publish findings shortly from its review of the wealth management sector in general.

JPMorgan's wealth management arm offers loans, mortgages and porfolio investment services to clients with $25 million or more to invest, many of whom were working in the financial services industry when the failings took place, the FCA said. (Reuters)

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:42:46 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22497</guid>
  
</item>


<item>
    <title><![CDATA[Irish online sales now worth over E4bn]]></title>
    <description><![CDATA[nline spending is rising rapidly and now accounts for more than 15pc or E4.1 billion of sales by Irish retailers annually, according to the latest Online Retailing Survey 2013 from Retail Ireland.

It found that 84pc of retailers have an online presence and 64pc intend to upgrade that presence in the next 18 months.

The majority of retailers now advertise on social media channels such as Facebook and Twitter and over half have plans to focus on smart phone applications and tablet technology.

The survey of retailers with over 500 stores and 18,000 employees in Ireland was published as retailers gather at the Aviva Stadium in Dublin for the first Retail Ireland Annual Conference, in partnership with the IBEC Retail Skillnet.

Commenting on the survey, Retail Ireland Director Stephen Lynam said: "Irish retailers are now sharply focused on catering to the digital consumer as well as the traditional customer. It's a huge market, estimated at a value of E4.1bn in Ireland alone and the retailers surveyed reported that 15pc of their sales now come from online sales. There is huge scope to increase online sales. The majority of retailers surveyed are offering discounts, special deals, free shipping and larger product ranges to attract online shoppers."

"However, there are a number of barriers to online trading: delivery costs (36pc), initial set-up costs (28pc), and just under a quarter cited poor broadband speeds, competition and the lack of post codes in Ireland as barriers. While many retailers are addressing these barriers themselves, Government support is needed to address issues such as the provision of high speed broadband through the accelerated implementation of the National Broadband Plan and speed up plans to introduce a comprehensive post-code system in Ireland to help with deliveries."

"Retail is one of Ireland's largest sectors, employing over 250,000 people. The sector has faced major challenges in recent years, most predominantly slow domestic demand. Given that the sector is under huge pressure, it needs every support possible to help it overcome the very challenging market conditions," concluded Mr Lynam.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:36:15 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22498</guid>
  
</item>


<item>
    <title><![CDATA[Flybe quits Gatwick to save money]]></title>
    <description><![CDATA[Struggling British airline Flybe will quit its main London hub at Gatwick airport and has pushed back the delivery of 16 new aircraft to help it return to profitability.

Europe's largest regional airline also said it had axed 590 jobs, or 22 percent of its UK workforce, despite saying in January it would cut only 300 jobs when it unveiled a cost-cutting plan designed to end a two-year run of losses at the pretax level.

Flybe floated its shares on the London Stock Exchange at the end of 2010 and has since suffered from soaring fuel costs, falling passenger numbers and higher airport charges, especially in London.

The company, which counts British Airways parent IAG and billionaire investor George Soros among its largest shareholders, said on Thursday the measures would save it 30 million pounds ($45 million) in costs in 2013/14, 5 million pounds ahead of its previous target, with more than half coming from the job cuts.

Flybe will exit Gatwick in March 2014, after agreeing a deal to sell its 25 take-off and landing slots at London's second-largest airport to easyJet for 20 million pounds.

"No business can swallow cost increases of more than 100 percent over five years and Flybe simply cannot bear such punitive rises," Flybe Chief Executive and Chairman Jim French said.

Flybe said it had also pushed back the delivery of 16 Embraer E175 aircraft to between 2017 and 2019, which would reduce pre-delivery payment charges due this year by 20 million pounds.

The aircraft were previously due to arrive in 2014 and 2015.

Since Flybe's 295 pence-per-share float, its shares have fallen 80 percent, cutting the company's market value to 43 million pounds from 215 million at launch.

"Flybe is exposed to the regional UK market which is not seeing the same growth as London is," said analyst Alexia Dogani at brokerage Liberium. "London airports have become more expensive for small regional airlines to operate (from) ... and therefore Flybe has not been able to attract as many passengers for its routes."

It is not the only smaller airline to have suffered. Last year, loss-making Spanair and Hungarian flag-carrier Malev ceased operations, leaving gaps in the market that larger low-cost carriers like easyJet have been quick to exploit.
(Reuters)

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:27:30 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22499</guid>
  
</item>


<item>
    <title><![CDATA[Lagarde in court over E285m payment]]></title>
    <description><![CDATA[IMF chief Christine Lagarde was questioned in court by a French magistrate today over her role in a 285-million-euro arbitration payment made to a supporter of former president Nicolas Sarkozy.

Lagarde risks being placed under formal investigation at the hearing for her 2007 decision as Sarkozy's finance minister to use arbitration to settle a long-running court battle between the state and high-profile businessman Bernard Tapie.

nder French law, that step would mean there exists "serious or consistent evidence" pointing to probable implication of a suspect in a crime. It is one step closer to trial but a number of such investigations have been dropped without any trial.

Such a move could prove uncomfortable for the International Monetary Fund, whose former head, Frenchman Dominique Strauss-Kahn, quit in 2011 over a sex assault scandal, and for a woman rated the most influential in France by Slate magazine.

"It's a pleasure to see you," a smiling Lagarde said to reporters as arrived at the Paris court with her lawyer for a hearing that could last into Friday.

They were not expected to emerge until the end of the day's proceedings, which could run into late evening. The decision on whether to place her under investigation or give her "supervised witness" status will be announced at the end of the hearing.

The case goes back to 1993 when Tapie, a colourful and often controversial character in the French business and sports world, sued the state for compensation after selling his stake in sports company Adidas to then state-owned bank Credit Lyonnais.

Also a one-time Socialist minister who later supported the conservative Sarkozy, Tapie said the bank defrauded him after it resold the stake for a much higher sum. Credit Lyonnais, now part of Credit Agricole, has denied wrongdoing.

Lagarde is not accused of financially profiting herself from the payout and has denied doing anything wrong by opting for an arbitration process that enriched Tapie. With interest, the award amounted to 403 million euros.

However a court specialising in cases involving ministers is targeting her for complicity in the misuse of funds because she overruled advisers to seek the settlement.

Her lawyer, Yves Repiquet, told French media that Lagarde had merely approved the use of an arbitration procedure that had been decided by the state-owned holding company, Consortium de Realisation, set up to take over the debts and liabilities of Credit Lyonnais when it fell into difficulty in the early 1990s.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:19:09 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22500</guid>
  
</item>


<item>
    <title><![CDATA[Irish firm launch 3D mobile game engine]]></title>
    <description><![CDATA[Havok, the Emmy award winning Irish technology company which provides interactive software solutions for the global games and entertainment industries, has unveiled Project Anarchy.

This is a complete end-to-end mobile 3D game production engine, which will be free on many leading mobile platforms, without commercial restrictions on company size or revenue.

Project Anarchy will include Havok's Vision Engine together with access to Havok's industry-leading suite of Physics, Animation and AI tools as used in cutting-edge franchises such as Skyrim, Halo, Assassin's Creed, Uncharted and Skylanders.

The free download will also include a broad range of game samples and tutorials to help the mobile development community hit the ground running.

David Coghlan, Managing Director of Havok, says: "We're consistently amazed by what the AAA industry creates with our technology and we're really delighted to be able to offer these professional grade tools to mobile developers for free and we look forward to supporting the mobile game development community to make some stunning games with the technology over the next few years."

As part of this initiative, Havok will launch an online community to proactively promote and support developers through all stages of production via a dedicated website www.projectanarchy.com.

Project Anarchy will also encourage free sharing and collaborative development of extensions and customisations by the community.

Recently added to the list of free-to-ship platforms for Project Anarchy is Tizen. Tizen is an open-source, stands-based operating system supported by leading mobile operators and hardware manufacturers for devices including smartphones, tablets, netbooks and connected devices including smart TVs.

Christopher Croteau, Tizen Association Board Member and Managing Director of Intel's System Software Division, says: "The Tizen ecosystem welcomes Havok's Project Anarchy support for Tizen. Project Anarchy will provide an end-to-end mobile 3D game production engine for game developers targeting Tizen mobile devices."

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:15:16 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22501</guid>
  
</item>


<item>
    <title><![CDATA[Irish shipping volumes up in 1st quarter]]></title>
    <description><![CDATA[Irish shipping and port activity rose by 2pc in the first quarter of 2013 when compared to the corresponding period of 2012, according to the latest quarterly iShip Index published today by the Irish Maritime Development Office (IMDO).

The upturn in volumes is as a result of unprecedented levels of imported animal feed which otherwise masked a continued downturn in key container traffic through Irish Ports. The latest analysis indicates that two of the five principal freight segments grew in the first quarter of 2013.

The dry bulk sector has been the strongest performing freight segment over the last quarter, growing by 10pc to 4.2 million tonnes. Dry bulk shipments, typically grain, agricultural products and aggregates, make up the largest volume weighting of the iShip Index. Irish ports have seen record levels of animal feed passing through their quays in recent months as farmers struggle with unseasonably poor weather conditions. Animal feed imports increased by 80pc compared to the same quarter last year, continuing the double-digit surge in demand for these commodities since last July. We also noted a 13pc increase in coal shipments during Quarter 1 that we again attribute to poor prevailing weather conditions.

Container traffic (lift on/lift off) fell by 6pc to 140,681 units, reaching its lowest level for over a decade. This sector is a key distribution channel for Irish exports to long-haul markets, including Asia and the US, as well as Europe. Exports, as a subset of this total volume fell by 8pc, the largest quarterly fall since Q3 2009, representing four consecutive quarterly declines in container export volumes. This is primarily due to weaker conditions in key global markets coupled with slower growth across the Eurozone impacting on demand. Our data initially identified a slowdown in export growth starting to emerge in Q3 2011. Imports of container based commodities into Ireland also fell by 5pc in the 1st quarter as weaker industrial and consumer sentiment appeared to prevail. This is the 21st consecutive quarterly decline in import traffic with little indication of any immediate recovery during 2013.

Roll on/roll off trailer volumes increased by 1pc to 204,708 units. The rise in this sector was helped by a stronger performance in direct continental services (up 19pc). Traffic to and from Great Britain, our largest trading partner, fell 2pc as demand conditions in the UK remained largely subdued. The latest economic data for the UK, however, suggests some signs of a recovery which may translate into improved market conditions over the latter half of the year.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 12:06:42 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22502</guid>
  
</item>


<item>
    <title><![CDATA[Study shows loan arrears drag on economy]]></title>
    <description><![CDATA[A new study by a Central Bank economist has concluded that the large number of Irish households struggling with arrears represents a major drag on consumption and on the overall economy.

It found that households with debt problems spend 18 per cent less on average.

And there are a lot of them: At the end of last year almost one fifth of all mortgages were in arrears with a further 5pc having already entered in to restructuring deals with their lenders.

The Economic Letter looks at the impact of financial distress on household expenditure patterns by comparing the spending behaviour of those in mortgage arrears with those in the general population.

Central Bank mortgage arrears data for December 2012 indicated that 18 per cent of owner-occupier mortgages were in arrears. Consumption, amounting to 50 per cent of GDP, declined in 13 of 20 quarters from 2008:01 to 2012:04, and at the end of 2012 was 8 per cent below its peak.

"Given these trends, it is important to understand the extent to which mortgage distress has contributed to the weakness in consumption," the paper said.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 11:56:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22503</guid>
  
</item>


<item>
    <title><![CDATA[Chopra: Irish banks could get ESM cash]]></title>
    <description><![CDATA[The European Stability Mechanism could be used to provide further capital to banks in Ireland according to IMF director Ajai Chopra.

He said the ESM was a workable, feasible and created the right incentives. He said "our view is that is should be implemented."

He was speaking at in event hosted by UCD and the Institute of Bankers in Dublin.

Mr Chopra's remarks follow the publication by the Central Bank of a review which showed Irish banks had E26 billion of mortgages in arrears but only had E9 billion of excess capital.

He was responding to question regarding whether the ESM could be used to provide future funds to Irish banks.

He said "we would like to see banking union done quickly."

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 11:43:09 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22493</guid>
  
</item>


<item>
    <title><![CDATA[Govt provide E6.9m for science projects]]></title>
    <description><![CDATA[Minister for Research and Innovation, Sean Sherlock, has today announced Government funding through Science Foundation Ireland (SFI) of E6.9 million encompassing 62 research awards.

The investment is being made through SFI's Technology Innovation Development Award (TIDA) programme, in collaboration with Enterprise Ireland.

Minister Sherlock said, "The TIDA programme focuses on commercially relevant research projects. It will enable numerous research teams to take the first steps in developing new discoveries and inventions with commercial potential."

The Minister added "Today's funding announcement will help deliver the commercialisation of excellent research taking place in Ireland in a range of areas such as ICT, 'Big Data', medical technologies and food, amongst other things. These are areas of significant employment and should provide additional opportunities for Ireland."

Amongst the research activities being funded are: 'Big Data', a sector currently growing at up to 40pc per annum; the development of new drugs for cancer treatment and diabetes; new ways to detect cognitive decline and Alzheimer's disease; research to develop genetically modified crops tolerant to drought; underground high-voltage power cable technology as a substitute to overhead power lines; smart networked sensing systems in Agriculture; and projects supporting off-shore wind turbines, wi-fi technology and ultraviolet light sources for the pharmaceutical and semi-conductor sectors.

The Director General of SFI, Professor Mark Ferguson, said, "As set out in Agenda 2020, one of SFI's strategic objectives is to become the best scientific funding agency in the world at creating impact from excellent research and demonstrating clear value for our research investment. Each submitted project has been through a rigorous review process and ultimate selection was on the basis of the quality and novelty of the proposed innovation, its potential impact, and its fit with the National Research Prioritisation areas. Additionally, the commercial expertise that Enterprise Ireland brought to the TIDA selection process played a key role in further underpinning the market potential of the award recipients."

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 11:24:32 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22494</guid>
  
</item>


<item>
    <title><![CDATA[World markets dip on US stimulus move]]></title>
    <description><![CDATA[Share markets fell sharply today as investors piled back into safer assets, unnerved by the twin setbacks of unexpected weakness in China's economy and signals that the U.S. central bank may soon scale back its stimulus programme.

The yen bounced sharply off recent lows and German Bunds rose, gaining support from a shift in sentiment that followed Fed Chairman Ben Bernanke's comment that the bank may trim its bond purchases at one of its next policy meetings.

A surprise drop in Chinese factory activity in May, followed by data pointing to a second quarter economic contraction in the euro zone, added to investors' worries.

The revived concerns about global growth sent Oil and copper prices lower, and MSCI's world equity index fell 1.2 percent, putting it on course for its worst day of the month.

Japan's main Nikkei share index earlier plunged 7.3 percent, its biggest one-day percentage drop in two years and calling a halt to a rally driven by aggressive stimulus measures that the Bank of Japan unveiled in April.

"All the global developments we see in the markets right now are purely liquidity-driven, they are no longer underpinned by fundamentals," said Tobias Blattner European Economist at Daiwa Capital Markets.

"We must learn to live with that kind of volatility."

Europe's broad FTSEurofirst 300 index of top shares was down 1.9 percent at 1,232.59 points, having closed at its highest since mid-June 2008 the previous day. Germany's DAX and France's CAC-40 fell as much as 2.5 percent.

"The volatile response of equity indices to Fed Chairman Bernanke's testimony underlines the challenges the Fed faces in communicating its policy intentions," Ian Williams, equity strategist at Peel Hunt, said.

The switch out of equities extended as initial reports on business activity in May in the 17-nation euro area showed the region headed for a second quarter slump - though the data could boost the chances of the European Central Bank cutting rates further at its next policy meeting in June.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 11:11:28 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22495</guid>
  
</item>


<item>
    <title><![CDATA[Dublin digi-start up to create 16 jobs]]></title>
    <description><![CDATA[A Dublin-based digital start-up firm is to create 16 jobs after securing E600,000 in funding.

The AIB Seed Capital Fund, co-managed by Enterprise Equity Venture Capital, has completed an equity investment in Dublin based digital start-up Huggity.

The E600,000 investment from AIB Seed Capital Fund and Enterprise Ireland will fast track Huggity's international scaling strategy and lead to 16 new sales support and relationship management positions in the Dublin headquarters.

Established in 2011, Huggity allows fans to relive the joy and excitement of their favourite sporting and music events.

Huggity's core product is FanPic which is a giant 360Âº panoramic, multibillion pixel crowd image that allows brands and sponsors to engage directly with their audience at sporting events and concerts, through social media platforms. Once a FanPic is posted online, users can zoom into the crowd photo to find themselves and their friends. They can then share a branded message with friends and family on Facebook, Twitter or email through the "tagging" feature. The branded interface and Facebook stories let brands connect with the fan experience and extend brand exposure beyond the event.

Since the company's launch, it has worked at high profile events and with brands including Euro 2012 Fanzone and the Euro 2016 Qualifiers, as well as with brands such as Manchester United, Liverpool FC, the Football Association of Ireland, the Irish Rugby Football Union, Aviva, Chevrolet, Royal Bank of Scotland, MTV, Deutsche Telekom, Vodafone, Swatch, and the Qatar Foundation.

Currently employing a staff of 6, which will grow to 22 by the end of 2013, the company has now started selling through partners in the US, Brazil, Australia, Norway, Poland, Turkey, and Belgium, and is also in discussions with a reseller in India. The new positions within Huggity will focus on business development, customer support, marketing and development of new products.

Mike Sikorski, CEO of Huggity, said: "The objective behind Huggity is to combine our photography, technology and marketing skills with our love of sport and music to create a positive experience for fans and a powerful engagement tool for brands, venues and artists. We are very pleased to close this round of investment and to have AIB Seed Capital Fund on board as our new commercially minded partner. This investment gives Huggity the opportunity to focus on increasing our international reach, build new engaging products with our clients and change the way brands build relationships with fans around the world".

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 10:52:17 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22496</guid>
  
</item>


<item>
    <title><![CDATA[Tullow gives up on Norwegian well]]></title>
    <description><![CDATA[Lundin Petroleum, Tullow Oil's partner on the Carlsberg prospect in the Norwegian North Sea, said today that it has plugged and abandoned a prospect.

It said that the wildcat well 7/4-3 encountered no oil or gas.

Tullow Oil has a 40pc stake in the well, which was targeting the Upper Triassic and Upper Cretaceous reservoirs of the Carlsberg prospect.

Lundin said: "The primary exploration target of the well was to prove petroleum in Upper Triassic reservoir rocks (the Skagerrak Formation). The Skagerrak Formation sands were not encountered.

"The second exploration target of the well was to prove petroleum in the Upper Cretaceous chalk reservoir. The reservoir was found at the predicted depth, but was water bearing with no presence of hydrocarbons."

The well is the first exploration well in PL495 and PL495B, it added.

Following the plugging and abandonment of well 7/4-3, the Maersk Guardian rig will move to the Brynhild field to commence the drilling of the development wells.

The costs of the exploration well 7/4-3 and associated license costs will most likely be expensed during the second quarter of 2013.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 10:09:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22491</guid>
  
</item>


<item>
    <title><![CDATA[Taoiseach to meet Greek Prime Minister]]></title>
    <description><![CDATA[Taoiseach Enda Kenny will travel to Athens today to meet Greek Prime Minister Antonis Samaras.

The two men are expected to discuss the economic situation in the eurozone, as well as negotiations on the EU's seven-year budget.

-reece will take over the rotating EU presidency at the beginning of next year.

Mr Kenny will also meet representatives of the Greek business community during his short official visit.

It is understood Mr Samaras has been keen on a visit by the Taoiseach for some time.

Diplomats suggest the centre right leader is anxious to convey to the Greek electorate, using Ireland as an example, the idea that a country can emerge from a bailout and return to financial sovereignty.

-reece is in the seventh year of a recession and the economy is still contracting.

nemployment stands at around 27pc, with youth unemployment over 60pc. The country's debt pile is still over E300bn.

There are some signs of hope, as two ratings agencies have upgraded Greece and the country's bond yields have lowered.

-reece's international lenders recently approved a further E7.3bn in loans.

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 10:05:19 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22492</guid>
  
</item>


<item>
    <title><![CDATA[European markets in a tailspin on Fed]]></title>
    <description><![CDATA[European shares went into a tailspin early this morning, spooked by concerns that the U.S. Federal Reserve could soon taper its stimulus programme and compounded by weak economic data from China.

By 0729 GMT, the FTSEurofirst 300 was down 18.47 points, or 1.5 percent, at 1,237.81, having closed at its highest level since mid-June 2008 in the previous session, boosted by investors hunting for yield in a low interest rate environment.

The index, however, fell sharply on Thursday after Fed chairman Ben Bernanke told a congressional committee late on Wednesday that the central bank could scale back the pace of bond purchases at one of its next few meetings.

Investors were unnerved by Bernanke's comments, seeing a risk that an early withdrawal of U.S. stimulus could jeopardise the global economic recovery.

A euro zone purchasing managers' survey on Thursday showed the slump in the region eased slightly in May, but pointed to a further contraction in the second-quarter.

"The volatile response of equity indices to Fed Chairman Bernanke's testimony underlines the challenges the Fed faces in communicating its policy intentions," Ian Williams, equity strategist at Peel Hunt, said.

"Investors should not overreact to every shifting nuance when Fed officials speak. U.S. monetary policy was data-dependent before the testimony and remains so," he said, adding that falls in share prices were more likely profit taking than the start of a market correction.

Illustrating how bullish investors remain towards equities, European shares remain on track for their 12th straight month of gains.

Weak China factory data added to the strain on equities on Thursday with an HSBC purchasing managers' survey showing Chinese factory activity shrank in May for the first time in seven months.

"A flash Chinese PMI reading came in weaker than expected. This can be seen as bad news in an environment where the Chinese policymakers appear unwilling to add to stimulus," Gerard Lane, equity strategist at Shore Capital, said.

Sectors most exposed to the broader economy saw the biggest declines. Banks and miners fell 2.4 and 2.7 percent respectively.

Shares in Renault fell 3.6 percent after the French car maker's Japanese partner Nissan recalled 841,000 cars worldwide to fix a steering wheel glitch.

Investors continued to punish companies that undershoot yield expectations with British bicycles-to-car-parts group Halfords tumbling 14.7 percent after it slashed its dividend to fund a three-year sales push.
( C ) Reuters


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 09:43:12 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22486</guid>
  
</item>


<item>
    <title><![CDATA[German private sector stagnating]]></title>
    <description><![CDATA[-ermany's private sector contracted very slightly in May as firms lacking new orders cut jobs, a survey showed today, suggesting Europe's largest economy will stagnate in the second quarter.

Markit's flash composite Purchasing Managers' Index (PMI) measuring growth in both manufacturing and services, which together make up more than two-thirds of the economy, edged up in May to 49.9 from 49.2 the previous month.

But that was still below the 50 mark that separates growth from contraction and was far weaker than the survey's long-run average of 52.9.

"(Composite) new orders contracted quite markedly again, which suggests that June is going to be weak, so I think we'll see a stagnation at best (in the second quarter)," said Markit chief economist Chris Williamson.

He said a decline in staffing levels across the private sector for the first time since January pointed to an underlying trend of "mild contraction if anything".

The German economy grew by just 0.1 percent in the first three months of this year as the ongoing euro zone crisis and a global economic slowdown made it hard for Europe's growth engine to recover from a 0.6 percent contraction in late 2012.

Recent data has shown output, industrial orders, imports and exports rose in March, while the latest sentiment indicators have shown investor morale improving only slightly and the mood among firms worsening.

The PMI survey suggested the manufacturing sector was stabilising, with a sub-index tracking factory activity rising to 49.0 in May from 48.1 the previous month as new orders climbed for the first time since February and output increased after falling in April.

Input prices fell much more sharply than output prices, which should buoy operating margins, but factories slashed jobs for a second consecutive month, export orders fell for a third month, and backlogs of work declined.

In the services sector, however, there were signs of trouble ahead, with companies lacking new contracts, backlogs of work falling, operating margins being squeezed as input prices rose more sharply than output prices, and workers being fired.

The index for the services sector edged up to 49.8 in May from 49.6 in April.

In a worrying sign for future investment and hiring intentions, service firms' business expectations hit their weakest level since December - albeit remaining in positive territory - as weak growth prospects, subdued consumer spending and austerity measures took their toll. ( C ) Reuters

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 09:24:09 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22487</guid>
  
</item>


<item>
    <title><![CDATA[EU recession may be easing, PMI]]></title>
    <description><![CDATA[Markit's flash Eurozone Services PMI, which surveys around 2,000 companies ranging from major banks to caterers, rose in May to 47.5, a three-month high, from 47.0 in April.

While that was a little better than economists polled by Reuters expected, the PMI has now spent 16 straight months below the 50 mark that divides growth and contraction.

French companies continued to fare poorly this month, while activity in German firms effectively stagnated.

verall, survey compiler Markit said the surveys pointed to a similar economic performance in the second quarter as the 0.3 percent contraction the euro zone logged in the January-March period.

"There are signs the rate of decline is easing, which does suggest we may be moving into a period of stabilisation, but it's taking a lot longer than most people anticipated," said Chris Williamson, chief economist at Markit.

"It's looking more like the end of the year (until) we're going to see the numbers start to show signs of stabilising."

The new orders services index fell to 45.3 from 46.2, meaning a big upturn in the PMI next month looks unlikely.

Williamson said there were signs that the rate of decline eased this month in the "peripheral" euro zone countries outside Germany and France.

"But against that we've seen a worrying steep deterioration in service sector expectations for the year ahead."

Although business expectations for the year ahead hit an 11-month high in April, it plummeted in May to its lowest point since December.

The PMI for the manufacturing sector rose to 47.8 this month from 46.7 in April, while showing new orders and output declined at a slower pace, comfortably beating expectations of 47.0 predicted by economists.

Combining both the services and manufacturing reports, the composite PMI hit a three-month high of 47.7 in May, compared with April's 46.9, while showing continuing job losses.

Both the input and output prices index stayed below the 50 mark this month, indicating deflationary pressures.

"The European Central Bank doesn't have anything to worry about in relation to inflation," said Williamson.

"More likely, it's going to find it difficult to get inflation up to the level it wants," he added, referring to the central bank's target of close to 2 percent.
( C) Reuters


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 09:19:58 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22488</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ sharply lower, Bernanke blamed]]></title>
    <description><![CDATA[The ISEQ is sharply lower this morning at 4,035, down 33 points as European markets were not happy with Ben Bernanke's comments and are all sharply lower this morning.

Davy Stockbrokers examines the issues:

The Euro Stoxx 50 closed up 0.5pc while the S and P500 fell 0.8pc yesterday. Markets had 
an especially volatile day as investors struggled to interpret Ben Bernanke's congressional 
testimony. The Fed President placed more emphasis than expected on the likelihood that 
the $85bn of monthly asset purchases could taper off in the next few months. Similarly, 
the minutes of the Fed's last policy meeting showed that several FOMC members 
thought quantitative easing should be scaled back as early as the June meeting. 

The US 10-year bond yield fell to a trough, close to 1.9pc, before rising sharply overnight 
to a peak close to 2.05pc. It is currently trading marginally above 2.0pc. Stock index 
futures suggest that European equity prices will fall substantially at the open. Overnight, 
the May HSBC manufacturing PMI survey for China fell to 49.6, indicating contraction for 
the first time in seven months. The news hit risk appetite in Asian markets hard, with the 
Nikkei down -7.3pc, the Hang Seng -2.7pc and Asx 200 -2.0pc. May PMI surveys for 
Europe are released later today, and the US initial jobless claims will feed speculation on 
when the Fed may end its quantitative easing programme.

The second release of UK GDP is published at 09.30 this morning. We already know that 
 K GDP expanded by 0.3pc in Q1 2013. This comprised a robust expansion in services, 
but with manufacturing and construction detracting from growth. The spending data are 
released for the first time today. Consumer spending is expected to have increased by 
0.3pc, the sixth consecutive quarter of expansion, up 1.5pcyear-on-year. This continues 
the trends seen in 2012, with the domestic economy showing some signs of recovery, 
but with overall GDP growth held back by weak exports and manufacturing according to Davy Stockbrokers


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 09:09:53 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22489</guid>
  
</item>


<item>
    <title><![CDATA[How will tax issues play out for Ireland]]></title>
    <description><![CDATA[There are more than 1,000 multinationals with operations in Ireland, employing about 150,000 people. The strength of this sector has helped Ireland to return to some economic growth following our economic crisis in 2008. Some of the larger tech multi-nationals include:Google, Microsoft, Apple and Pfizer.

The current controversy in the UK,US and EU over our tax affairs has the potential to impact Ireland into the future. It could go either way, with large Corporations deciding to pay more tax but where? There is the possibility that Ireland will be the chosen destination for this change of heart due to our favourable basic rate or Multi-nationals may decide to pay more in each country of operation thereby diverting vital revenue away from Ireland.

The issue of corporate taxation has surged to the fore during Europe's economic crisis, with countries such as Ireland and the Netherlands singled out for offering easy shelters for multinationals looking to avoid paying taxes in countries where they make the majority of their profits according to The Washington Post.

There are no global estimates of how much revenue governments lose through tax avoidance or evasion schemes.

But recent research by the Organisation for Economic Co-operation and Development (OECD) indicates that the problem is massive. Foreign direct investment, for example, in theory represents a long-term commitment by a firm in one country to owning productive capacity - a plant or building, for example - in another. But data show billions of dollars in foreign direct investment moving through small nations such as Bermuda and the Bahamas, suggesting that the money is not invested there but simply used to set up a corporate presence, for tax purposes, before moving to a final destination elsewhere. The Netherlands is one of the top locations for U.S. foreign direct investment, but OECD data suggest that the money ultimately moves on.

Such macro-level connections are only suggestive and prove nothing about the behaviour of individual firms. But they have been enough for the OECD to press major nations to develop a global strategy for curbing tactics such as "hybrid mismatching" - in which the tax laws of several countries are played against each other to lower a corporation's tax bill.

It is legal under current international tax laws and treaties but "far from the spirit of what the law is," said an OECD official who was not authorised to speak on the record. Tax treaties were written, "to avoid double taxation, not to allow double non-taxation."

It is early days in this process and certainly too soon to make any kind of prediction about how this will finally play out. The Revenue Commissioners and The Finance ministry will certainly be watching for changes to behaviour by the important multi-national sector.

Report by Cathal O Dubhain

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 08:53:07 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22490</guid>
  
</item>


<item>
    <title><![CDATA[France still stuck in recession]]></title>
    <description><![CDATA[French business activity retreated again in May despite a slight improvement in manufacturing, a survey showed today, offering little hope of a quick exit from recession in the euro zone's second-biggest economy.

Data compiler Markit said its preliminary composite purchasing managers index, covering activity in the services and manufacturing sectors, was unchanged in May at 44.3, far below the 50-point line dividing expansions in activity from contractions.

Markit chief economist Chris Williamson said business activity remained far too subdued to declare the end of the downturn in sight.

"There is just a lack of belief that the situation is going to improve any time soon," he added. "There is strong dissatisfaction with the government and its handling of the economy."

The survey showed a slower rate of decline in the manufacturing sector, which saw its reading rise to a nine-month high of 45.5 from 44.4 in April, also beating economists' average expectations for 44.8.

The larger services sector, which accounts for more than half of French economic activity, saw its index remain unchanged at 44.3, falling slightly short of expectations for 44.5.

In one positive sign, the flow of overall new business improved slightly in May thanks mainly to a slower rate of decline in manufacturing new orders.

France entered recession in the first three months of the year, posting two consecutive quarters of contraction in economic output.

The 2 trillion euro economy has struggled as business and household confidence have crumbled in the face of record jobless claims and rising taxes.

Williamson said the May PMI figures suggested the economy would contract at a rate of 0.5 percent in the second quarter, though he said the PMI data have painted a gloomier picture than GDP figures recently.

The government is hoping the economy will grow 0.1 percent this year, though even President Francois Hollande has acknowledged that the country would be lucky to achieve that.
( C ) Reuters


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 08:23:28 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22484</guid>
  
</item>


<item>
    <title><![CDATA[Roundup-Some write downs of mortgages]]></title>
    <description><![CDATA[About 20,000 mortgages relating to private dwellings are in arrears of 90 days or more with PTSB. Chief executive Jeremy Masding said that in the first four months of this year, standard financial statements had been completed by 11,400 customers, with 9,200 of these put on some form of "treatment" to address their financial difficulties. The balance remain in the system.

These treatments include split mortgages, where part of the mortgage is warehoused by the bank for a period during which customers would only make payments on the balance of the loan.
Speaking to the media after an acrimonious agm, Mr Masding said another 800 buy-to-let mortgages had also been placed on a treatment plan.

About 2,500 buy-to-lets have so far been dealt with by the bank. In 1,700 of these cases, it has managed to identify the "right party contact" who is responsible for repaying the mortgage. This suggests that there are 800 cases where there is doubt about who is responsible for repaying the loan.
The Irish Times

XXXX

AIB chief executive David Duffy has confirmed that the bank is considering a tracker mortgage deal for homeowners who wish to move home and retain their low tracker interest rates.
Mr Duffy said in Limerick yesterday that the bank was considering following moves by Permanent TSB which is close to signing off on a new deal that would allow families moving to a new home to keep their tracker rate for the rest of the loan period.

Earlier this week it was reported that Bank of Ireland will let people moving house keep their trackers for five years if they move.
When asked if AIB was planning to offer a similar lifeline to customers with tracker mortgages Mr Duffy said: "We are looking at the same thing . . .
"We are looking at a range of options. We are not rushing into it because we start out with the principle that a tracker is a contractual entitlement. We will not vary or try to adjust or try to manage that in any way.
The Irish Times

XXXX


The Government's decision not to include changes to how pensioners are prioritised when a pension fund becomes insolvent will put the livelihoods of thousands of workers at risk, industry groups have warned.
 nder the current rules, people already claiming their pension take precedence if a defined benefit pension scheme is deemed insolvent and has to be closed. That means that a 64-year-old still working can have their pension fund decimated, while a 65-year-old who has just retired will not have their pension touched.

The Government had been expected to amend the "priority order" in the upcoming Social Welfare and Pensions Bill.
The Irish Independent

XXXX


The special liquidators of IBRC believe that if the bank is beaten in a court case the legal costs awarded to its opponent will go to the top of the queue to be paid from proceeds of its winding up, even moving ahead of the Central Bank that the liquidation was set up to repay.
In court papers seen by the Irish Independent, joint special liquidator Kieran Wallace of KMPG argues that the bank does not need to set aside cash to cover the potential adverse legal cost of the award that it might suffer if it loses a legal action that it has taken.

Historic claims against the bank rank as unsecured creditors in the liquidation, he said.

As a result, they are unlikely to be paid. The Irish Independent

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 08:08:54 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22485</guid>
  
</item>


<item>
    <title><![CDATA[Only one Corporate tax rate in Ireland]]></title>
    <description><![CDATA[
European Union leaders are reported to have made progress on several initiatives to crack down on tax fraud and tax evasion.
Finance ministers are due to agree before the end of June on a series of rapid-response measures to eliminate multi-billion euro VAT fraud scams.
Negotiations will begin with Switzerland, Lichtenstein, Monaco, Andorra and San Marino on adopting EU standards on sharing information on savings.
Progress is also reported on agreeing a policy on dealing with aggressive tax planning by multinational companies - a matter EU leaders will return to at the end of the year.

European Commission President Jose Manuel Barroso said there was a "new momentum" on the issue.
Talks chairman Herman Van Rompuy said there was significant movement after years of blockage.
Taoiseach Enda Kenny said the row over Apple's tax position with Ireland "wasn't mentioned to me at all" during the meeting.
Mr Kenny said: "It wasn't an issue that was raised or discussed at all."

He described the meeting as having taken place "without antagonisms or tension."
He also said that he disagreed with testimony given by Apple executives to a US Senate Committee.
Mr Kenny said: "I disagree with the comment made in the US Senate yesterday. Ireland's Corporate Tax rate is 12.5pc. It has been that way for a period.
"The World Bank sets its effective rate at 11.8pc and that applies across the spectrum. There are no differences in any areas or sector for Ireland. We do not do special deals in regard to that Corporate Tax Rate"according to RTE News.


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 07:47:00 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22479</guid>
  
</item>


<item>
    <title><![CDATA[Ford shuts Australian facilities on cost]]></title>
    <description><![CDATA[Ford Motor Co will shut its two Australian auto plants in October 2016, blaming a strong currency and costs that are hitting manufacturers just as the country looks for other sectors of its economy to cushion the end of a mining boom.

Ford Australia will close its engine plant in Geelong and its vehicle assembly plant in Broadmeadows, both in Victoria state, with the loss of 1,200 jobs, Ford Australia Chief Executive Bob Graziano said on Thursday, the latest election-year blow to the struggling Labor government.

Ford, which built 37,000 vehicles in Australia last year, has been in the country since 1925 and employs more than 3,000 people. But it has been battling sliding sales, high costs and an Australian dollar trading above the U.S. currency.

"Our costs are double that of Europe and nearly four times Ford in Asia," Graziano said. "The business case simply did not stack up. Manufacturing is not viable for Ford in Australia."

Ford's decision to close its local production highlights the challenges the country faces as a near decade-long mining boom begins to fade. Policymakers hope other sectors of the economy such as manufacturing, construction and retail will start to pick up the slack, but evidence has been scant so far.

The Australian dollar has traded above parity with the U.S. dollar for most of the past two years - it fell to about 97 cents only this week - making it more difficult for local manufacturers to compete globally.

-raziano said Ford had lost A$600 million ($581 million) in the last five years in Australia, and A$141 million in the last fiscal year, as customers turned to smaller imported vehicles built by Japan's Mazda and South Korea's Hyundai .

The country's Performance of Manufacturing index fell to a four-year low in April, indicating continuing contraction in the sector despite record low interest rates of 2.75 percent.

"Australia's manufacturing sector continues to under-perform other parts of the globe," CommSec Economist Savanth Sebastian said in a research note this month.

"The main difference is the strength of the Aussie dollar, which clearly is causing businesses to markedly re-assess the viability of ongoing operations as well as strategic direction," Sebastian said.

-eneral Motors Holden, the local unit of General Motors Co , said last month it was cutting 500 jobs, or 18 percent of its workforce. It also cited the damage to its competitiveness from the strength of the Australian dollar.

Ford's decision is likely to trigger a row over state assistance to the auto industry ahead of elections in September. Polls suggest the minority Labor government is heading for a bruising defeat, due largely to its perceived mismanagement of the economy.

Labor has earmarked around A$5.4 billion for car industry assistance to 2020, pointing to the sector's importance in maintaining heavy-industry skills and employment.

The Australian automotive industry employs about 55,000 people and supports 200,000 other manufacturing jobs. Ford's closure is likely to affect the economies of scale at other local builders, General Motors and Toyota Motor Corp.

Prime Minister Julia Gillard said the government's immediate priority would be to support workers affected by the closures, likely to include parts makers already hurt by Mitsubishi Motors Corp's closure of its Australian plants in 2008.

"The economy that we have today has many sources of strength, but the high Australian dollar is putting a lot of pressure on some industries, particularly manufacturing," Gillard told reporters.

Australia's Reserve Bank expects the A$1.5 trillion economy to grow slightly below trend at 2.5 percent this year, returning to average or trend rates 2014. Unemployment is expected to rise slightly to 5.75 percent.

Australia has annual sales of approximately 1.1 million new vehicles, with deliveries up 7.6 percent to 85,117 in April. But sales of locally manufactured vehicles have fallen to around 221,000 in recent years, from almost 389,000 in 2005.

At home in North America, Ford is faring better and announced on Wednesday it was adding a week of production at most of its factories to build an extra 40,000 vehicles ( C) Reuters

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 07:40:20 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22480</guid>
  
</item>


<item>
    <title><![CDATA[Asian markets sell-off on Fed and China]]></title>
    <description><![CDATA[Hawkish comments by U.S. Federal Reserve Chairman Ben Bernanke and weakness in China's factory activity rattled Asian markets today, sending stock prices down, the U.S. dollar to three-year highs, and Japanese government bond yields to their highest in a year.

Stock and bond markets took their cue from the drop in U.S. equities and Treasuries after Bernanke's remarks at a Congressional hearing sparked worries of an earlier than expected reduction in U.S. monetary stimulus.

A weak manufacturing survey from China added to concerns about a delayed recovery in the world's second-largest economy and furthered those losses, dragging MSCI's broadest index of Asia-Pacific shares outside Japan down 2.1 percent.

Japan's Nikkei index was volatile, being up 1.5 percent at one stage and down nearly 6 percent in later trading.

Bookmakers expected European shares would decline sharply. Alpari forecast Britain's FTSE 100 to open 1.1 percent lower, Germany's DAX to fall 111 points or 1.3 percent, and France's CAC 40 to drop 35 points, or 0.9 percent.

The dollar hit a near three-year high against a basket of currencies at 84.498 and an 11-month high versus the Australian dollar.

"There is dollar buying on the back of superior growth prospects in the U.S. economy and eventual tightening of monetary policy," said Gareth Berry, a currency strategist with UBS in Singapore.

"But just because the dollar is rallying does not mean we are in a risk-off world."

In testimony to Congress on Wednesday, Bernanke said a decision to scale back the $85 billion in bonds the Fed buys each month could be taken at one of the central bank's "next few meetings" if the economy looked set to maintain momentum. .

Financial markets interpreted the comments as hawkish, even though Bernanke made clear the Fed needs to see further improvement in the economy before reducing stimulus. Minutes from the Fed's latest meeting, released on Wednesday, also showed most policy members had set the bar for the onset of policy tightening pretty high.

"The Fed hasn't tightened policy in any way since pre-GFC," said Westpac's FX strategist Sean Callow, referring to the 2008 global financial crisis.

"And most equity markets have had a great run and consensus was Ben would sound like Dudley - don't worry, more dollars coming," he said, referring to New York Fed President William Dudley who has been openly dovish.

Wall Street stocks posted their biggest daily decline since May 1. The U.S. 10-year Treasury yield hit a two-month high of 2.069 percent earlier on Thursday and last stood at 2.02 percent.

That affected Asian credit markets, causing the spread on the iTraxx Asia ex-Japan investment-grade credit default swap index to widen by four basis points.

The Nikkei average tumbled 5 percent to 14,808.6 after initially surging to a fresh 5-1/2 year high, rattled by the drop on JGBs as well as the weak factory activity in China, one of Japan's major export markets.

That spurred a round of yen-buying as investors reduced heavy bets on weakness in the Japanese currency, pushing the dollar down 0.8 percent to 102.3 yen and off Wednesday's high of 103.74, the greenback's strongest level since October 2008.

Japanese government bond (JGB) prices dived as a surge in U.S. Treasury yields extended the bearishness in Japan's bond market, which has suffered a steep selloff after the Bank of Japan unleashed massive monetary stimulus last month to boost inflation.

"Bernanke seems to be leaning towards reducing bond purchases, which was a bit of surprise," said Tadashi Matsukawa, head of fixed-income at Pinebridge Investments in Tokyo.

"In addition, the Bank of Japan didn't offer any concrete steps to calm the JGBs."

Bernanke's comments came just after BOJ chief Haruhiko Kuroda disappointed JGB players by offering only lip service to worries about the recent rises in JGB yields and reiterated they could naturally rise when the economy improves.

The 10-year JGB yield rose to 1.000 percent, its highest level since early April last year, and last stood at 0.855 percent or down 3 basis points on the day.

The 10-year JGB yield has more than tripled from a record low of 0.315 percent hit on April 5, the day after the BOJ unveiled its unprecedented monetary expansion.

To appease nervous investors, the BOJ offered 2.0 trillion yen ($19.4 billion) cash in one-year contracts, a type of market operation the BOJ has used a few times in recent weeks when it wanted to reduce volatility in JGBs market though with limited success.

Shares in Hong Kong were headed for their worst daily loss in seven weeks on Thursday, mimicking losses across Asia after China's flash HSBC Purchasing Managers' Index (PMI) for May fell to 49.6, slipping under the 50-point level demarcating expansion from contraction for the first since October.

Emerging Asian currencies fell against the dollar with the South Korean won down 1.2 percent and the Philippine peso losing nearly 1 percent.

The weak PMI for China added to pressure on the Australian dollar, which fell to its lowest level since June 2012 at $0.9626.
( C ) Reuters


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 07:18:29 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22481</guid>
  
</item>


<item>
    <title><![CDATA[Futures point European stocks lower]]></title>
    <description><![CDATA[European stock futures pointed to a sharply weaker start today after a poor factory activity survey from China and on concerns the U.S. Federal Reserve could decide to cut its bond purchases in the next few meetings.

At 0601 GMT, futures for Euro STOXX 50, UK's FTSE 100, Germany's DAX and France's CAC were 1.5 to 1.8 percent lower.

The FTSEurofirst 300 index of top European shares closed 0.2 percent firmer on Wednesday at 1,256.28 points, the highest close in five years.
( C) Reuters


<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 07:12:00 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22482</guid>
  
</item>


<item>
    <title><![CDATA[Chinese factory orders dip for 1st time]]></title>
    <description><![CDATA[China's factory activity shrank for the first time in seven months in May as new orders fell, a preliminary manufacturing survey showed, entrenching fears that its economic recovery has stalled and that a sharper cooldown may be imminent.

The flash HSBC Purchasing Managers' Index (PMI) for May fell to 49.6, slipping under the 50-point level demarcating expansion from contraction for the first since October. The final HSBC PMI stood at 50.4 in April.

The lack of vigour in the world's second-biggest economy implies its ability to meet the government's 7.5 percent growth target this year is increasingly difficult, analysts said, albeit it is still possible.

The soft data also sharpens Beijing's policy dilemma over whether to act to stabilise activity, or tolerate an orderly slowdown while focusing on reducing the country's dependence on exports and investment for growth, changes that would bring longer-term benefits.

Yao Wei, an economist at Societe Generale in Hong Kong, said the debate favours policy inaction from Beijing for now, as long as economic growth remains above 7 percent.

"We don't think it will trigger any cyclical policy move as long as the job market is fine," she said.

"China is really on a path of structural (growth) deceleration. It's possible (to meet the growth target) but it's becoming increasingly difficult."

The PMI survey suggested China is up against weakness both at home and abroad. A sub-index measuring overall new orders dropped to 49.5, the lowest reading since September, suggesting domestic consumption is not strong enough to offset soft global demand.

Asian stock markets extended early losses after the report. Oil, copper and rubber prices also retreated, while the Australian dollar skidded.

Thursday's PMI revived investor worries about whether China can sustain an economic revival this year, after annual growth slumped to a 13-year trough in 2012. China's factory output and investment performance for April released earlier this month had already underwhelmed markets.

The run of dismal data reports have prompted economists to slash their growth forecasts for China.

BS this week downgraded its 2013 growth target for China to 7.7 percent, from 8 percent, and Societe Generale is in the midst of lowering its estimates. Bank of America-Merrill Lynch cut its China 2013 growth forecast earlier this month to 7.6 percent from 8 percent.

If the economy meets the government's growth target and expands 7.5 percent this year, it would still be its worst performance in 23 years.

The HSBC flash PMI comes about a week before the final reading and is the earliest indicator of how the Chinese economy is faring each month.

The PMI survey showed new export orders hovered below the 50-point level in May, though the rate of decline slowed from April.

Still, the weak showing implied foreign demand remained lethargic due to a patchy U.S. recovery and Europe's nagging debt crisis, and echoes weak export momentum seen in Taiwan and South Korea in May.

In a reflection of the cooldown in the vast factory sector, both indices for input and output prices stayed muted in May to be near troughs seen in the third quarter last year.

"A sequential slowdown is likely in the middle of the second quarter, casting downside risks to China's fragile growth recovery," said Qu Hongbin, an economist at HSBC.

Yet, barring a slump in the labour market, most analysts believe Beijing will opt to stay on the policy sidelines. Measures such as reducing corporate taxes may be enacted, but only as part of broader tax reforms, not to pump-prime growth.

A stable employment market ranks high among China's policy priorities as the Communist Party justifies its one-party rule with tacit promises of economic prosperity.

Although Chinese media has reported that a record 7 million graduates will join the labour force this year, there are few reports of widespread discontent among job hunters. Thursday's PMI also showed pointed to a stable employment market.

And Chinese leaders on their part appear to be comfortable for now with moderating economic growth.

Chinese Premier Li Keqiang said last week the country has limited room to rely on government spending or policy stimulus to spur its growth, dispelling market speculation that Beijing may act to pump-prime its economy.

At the depth of the global financial crisis in 2008/09, an estimated 20 million rural migrant workers lost their jobs, prompting Beijing to unveil a 4 trillion yuan stimulus package to shore up the economy and guarantee employment.

The latest sputter in China's growth engine is clearly taking a toll on its corporate sector, but there are no signs of major defaults on loans.

Among China-listed companies which have posted their first-quarter earnings, 67 percent missed market expectations, Thomson Reuters data showed.

oomlion Heavy Industry Science and Technology Co Ltd , China's second largest construction equipment maker, reported a 72 percent plunge in its first-quarter earnings from a year earlier.

-overnment data this week also showed that profit growth in China's giant state firms cooled in the first four months of the year. ( C) Reuters

<br/>]]></description>
    
    <pubDate>Thu, 23 May 2013 07:06:21 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22483</guid>
  
</item>


<item>
    <title><![CDATA[Grafton St to get a E4m makeover]]></title>
    <description><![CDATA[Dublin City Business Improvement District (BID), which represents 2,500 businesses in Dublin City Centre, today said the business community welcomed the Grafton Street Improvement Scheme.

The scheme was officially announced by Lord Mayor Naoise O'Mhuiri in Bewley's Cafe.

The works will see an investment of E4 million in new high-quality granite paving, fixtures and street furniture and will be the first step in an overall regeneration project for the entire area between Dawson Street and South Great George's Street. KN Networks have been appointed as the contractor to carry out these works.

The works will begin in early June in the section of the street between St. Stephen's Green and Chatham Street. Pedestrian access to the street and to every business will be maintained at all times during the works. The target end date for the works is Christmas 2014. The works will cease for the Christmas 2013 trading period and January sales.

Richard Guiney, CEO of Dublin City BID said: "The business community is very supportive of Dublin City Council's plans to repave the street. Dublin City BID has been lobbying for a number of years to have the 1980's red brick street surface replaced with a more aesthetically pleasing and durable paving material. We are pleased that the Council has responded to the requests of the business community on this issue. Prior to the works Dublin City BID carried out a detailed on-street survey of Grafton Street businesses to ascertain their specific requirements during the course of the works. We brought together a working group of key business in the area and engaged a town planner and construction engineer to turn the needs of the businesses into a detailed and comprehensive planning submission made during the public consultation period for the works."

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 17:43:57 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22475</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ sheds losses after Fed statement]]></title>
    <description><![CDATA[The ISEQ shed its morning losses today after the top U.S. central banker reaffirmed his commitment to continued stimulus.

The ISEQ rose 8.55 points to 4,068.72.

European equities climbed to a new five-year high today after Federal Reserve Chairman Ben Bernanke said the central bank would retain its monetary stimulus measures until the economy improved.

Analysts stayed positive on the stock market's near-term outlook and said the recent gains were likely to continue and an "overbought" technical condition would not deter investors from adding more riskier assets such as equities to their portfolios.

Shares in fresh foods group, Total Produce, were flat at E0.67. Total Produce has reiterated its full-year guidance of EPS of 8.0-8.8c (Davy: 8.4c), +3.6pc year-on-year. Retailers, large and small, are refocusing efforts on their fresh offering. "Total Produce is well positioned to benefit from such a shift. In addition, it is expanding its geographic footprint through its recent US acquisition. We reiterate our 'Outperform' rating," said Davy.

Stock movers included Bank of Ireland up 1c to E0.19, Elan gained 4c to E9.24 and Kerry climbed 50c to E45.00.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 17:35:53 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22476</guid>
  
</item>


<item>
    <title><![CDATA[UK's Milliband slams Google on tax]]></title>
    <description><![CDATA[-oogle's tax affairs came under renewed scrutiny in Britain today when the leader of the opposition Labour party accused the Internet company of wrongly going to "extraordinary lengths" to avoid paying tax.

In comments designed to politically outflank Prime Minister David Cameron ahead of next month's G8 summit on what has become a high-profile issue, Ed Miliband, the Labour leader, said he was disappointed that Google paid so little tax.

"I can't be the only person here who feels disappointed that such a great company as Google ... will be reduced to arguing that when it employs thousands of people in Britain, makes billions of pounds of revenue in Britain, it's fair that it should pay just a fraction of one percent of that in tax," Miliband told a Google event held just outside London.

"So when Google does great things for the world, I applaud you. But when (Google Executive Chairman) Eric Schmidt says its current approach to tax is just 'capitalism', I disagree. When Google goes to extraordinary lengths to avoid paying its taxes, I say it's wrong."

-oogle's methods of minimising its British tax bill have made headlines at a time when voters' incomes are being squeezed, putting pressure on politicians.

Lawmakers have accused Google of using "smoke and mirrors" to avoid paying tax. Its northern Europe boss, Matt Brittin, was called back to testify to parliament after a Reuters investigation showed the company employed staff in sales roles in London, even though he had told the committee in November its British staff were not "selling" to British clients.

Schmidt defended his company's tax policy at the same event on Wednesday, saying its behaviour was not unethical and that it was "trying to do the right thing".

"Virtually all the American companies have structures like this. This is how the international tax regime works," he told an audience at the event. "If that changes, we will follow." (Reuters)

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 17:21:35 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22477</guid>
  
</item>


<item>
    <title><![CDATA[FTSE closes at a 13 year high]]></title>
    <description><![CDATA[-rowth sensitive sectors drove Britain's top share index to fresh 13 year highs, receiving a boost after the top U.S. central banker reaffirmed his commitment to continued stimulus.

Federal Reserve chairman Ben Bernanke said that central bank needs to see further signs of traction before taking its foot off the gas, helping to spike the FTSE 100 to an intraday high of 6,875.62, its highest level since January 2000.

"Everyone was expecting a bland, non-committal statement, but in the end we got strong confirmation of current policy and basically a green light for risk assets," Matt Basi, senior sales trader at CMC Markets, said.

"We're seeing a very strong performance from those sectors that are usually associated with good data, but with poor data across the world the focus is still on central bank stimulus."

Bernanke's written testimony offered no sign that he is ready to retreat from the Fed's latest round of bond buying, although stocks pared gains when he discussed exit strategies in verbal questioning.

Banks and miners were the top sectoral gainers, as so-called cyclicals, sensitive to economic stimulus, led the blue chips higher, shrugging off weak UK retail data. They combined to contribute over 18 points to a 36.40 point advance on the FTSE 100 index, which closed 0.5 percent higher at 6,840.27

The banking sector received a lift after state-backed British lenders Lloyds Banking Group and Royal Bank of Scotland agreed plans to shore up their capital with the financial regulator, removing a barrier to the government offloading its shares.

Lloyds and RBS traded up 2.3 and 2.2 percent respectively, with RBS having traded in negative territory before its announcement.

-ains in miners came as copper hit a 6-week high, and the sector rose 1.6 percent, taking gains since mid April to 9.3 percent. (Reuters)

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 17:18:56 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22478</guid>
  
</item>


<item>
    <title><![CDATA[EU to tighten securitised debt rules]]></title>
    <description><![CDATA[European Union regulators have proposed tighter safeguards on sales of the type of securitised debt that became untradable in the financial crisis, forcing taxpayers to rescue banks.

Securitisation is the consolidation of loans such as mortgages and credit cards and selling them as bonds to investors, with loan repayments paying the interest.

When such bonds based on sub-prime U.S. home loans became untradable in 2007, a global crisis unfolded to engulf lenders who held the bonds.

The securitisation market has remained moribund since then and its revival is seen by policymakers as key to funding sluggish economic growth and weaning lenders off cheap central bank money.

The European Banking Authority (EBA) today published draft rules for consultation that toughen up from 2014 existing guidelines for preventing a recurrence of the sub-prime debacle.

The rules, to be applied across the EU, will lay down how regulators supervise the market, ending the current system which allows some market participants more flexibility.

The EBA said the rules will reassure investors that securitised debt is less likely to become untradable.

Sellers of the debt must keep a 5 percent portion of the issue as an incentive to keep issuing standards high.

Banks that buy securitised debt and fail to check the seller has complied with the new safety rules will get an automatic 250 percent penalty capital surcharge on the purchase.

The 5 percent slice in future can only be retained by the originator, sponsor or original lender, with no third party allowed to do this as some supervisors currently allow.

The watchdog said this rule will hit the managed collateralised loan obligation (CLO) sector which pools payments on many business loans. Issuance between 2009 and 2011 was only 3 billion euros, compared with 130 billion in September 2007 alone.

Most CLO managers would struggle to come up with the resources to fulfil the retention requirements, EBA said.

This month the European Central Bank decided to start talks with the European Investment Bank and the EU Commission on reviving the asset-backed securities market.

But banks see a contradiction between such support from top policymakers and tougher rules from regulators on the ground.

The Association for Financial Markets in Europe (AFME), a banking industry body, said issuance of securitised debt in Europe fell to 70 billion euros last year from nearly 90 billion in 2011 and 400 billion in each year prior to the financial crisis. (Reuters)

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 16:37:28 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22473</guid>
  
</item>


<item>
    <title><![CDATA[CIE reports E43m deficit for last year]]></title>
    <description><![CDATA[CIE today posted a deficit of E43.1m for last year, before a once-off subvention payment of E36m from the Government and a near E19m pension cost adjustment.

When these factors are included, the group reported a surplus of E11.7m. The group is comprised of Dublin Bus, Bus Eireann and Iarnrod Eireann Irish Rail.

CIE's annual report - published today - shows that group operating costs fell by E7.3 billion last year from 2011, while revenue rose by E17m to E724.9m from E707.9m in 2011

Chairman Vivienne Jupp said that 2012 was an extremely difficult year, from a financial perspective.

''The cumulative effect of five years of reducing demand for public transport, reductions in Exchequer-funded Public Service Obligation payments, the increased cost of fuel and other economic factors led to a serious cash shortage in the group early in the year,'' she stated.

The number of people working at the group fell by 315 during the year to total 10,083 by the end of last year. Employee numbers have fallen from 11,818 in 2008 to 10,083 in 2012.

CIE said that 229.3 million passenger journeys were made across the group's bus and rail services in 2012, down from 232.7 million journeys in 2011. However, the company noted that passenger numbers did stabilise in the second half of the year.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 15:56:00 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22474</guid>
  
</item>


<item>
    <title><![CDATA[Wall St rises after Bernanke comments]]></title>
    <description><![CDATA[.S. stocks extended gains today, with both the Dow and briefly S and P 500 rising 1 percent after Federal Reserve Chairman Ben Bernanke gave no indication that the central bank would retreat from its latest round of bond buying.

The Dow Jones industrial average gained 123.18 points, or 0.80 percent, to 15,510.76.

The Standard and Poor's 500 Index rose 14.64 points, or 0.88 percent, to 1,683.80. The Nasdaq Composite Index advanced 22.47 points, or 0.64 percent, to 3,524.59.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 15:40:34 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22470</guid>
  
</item>


<item>
    <title><![CDATA[Bernanke gives no hint of Fed easing end]]></title>
    <description><![CDATA[The Federal Reserve's monetary stimulus is helping the U.S. economy recover, and the central bank needs to see further signs of traction before taking its foot off the gas, central bank chairman Ben Bernanke said today.

In testimony that offered no sign that he is ready to retreat from the Fed's latest round of bond buying, Bernanke emphasized the high costs of unemployment and inflation that continues to run below the central bank's target.

"Monetary policy is providing significant benefits," Bernanke said in remarks prepared for delivery to the Joint Economic Committee of the U.S. Congress, citing strong consumer spending on autos and housing, as well as increases in household wealth.

"Monetary policy has also helped offset incipient deflationary pressures and kept inflation from falling even further below the (Fed's) 2 percent longer-run objective."

He said part of the reason for low inflation was a decline in energy prices. But there were also indications of more broad-based disinflation, Bernanke said.

"Price inflation for other consumer goods and services has also been subdued," he said.

Bernanke reiterated that the Fed was prepared to either increase or reduce the pace of its bond buys depending on economic conditions, as the central bank stated on May 1 after its last policy meeting. (Reuters)

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 15:10:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22471</guid>
  
</item>


<item>
    <title><![CDATA[Savvy.ie plans to shake up deal market]]></title>
    <description><![CDATA[Savvy.ie launched this week, billing itself as a unique proposition in buying, selling or investing in a business in Ireland.

While solicitors and accountants have been the traditional brokers in business transactions, their networks are often local and due to the economic downturn their client network may have contracted, founder and solicitor, William Brennan said.

In a similar model to daft.ie, Savvy.ie will take the mystery out of buying, selling, merging or investing in a business.

It will provide an easy to use platform that will maximise scale and reach for both professional service providers and those wishing to buy sell or invest in a business opportunity.

With rigorous vetting built into the process, the site will allow for greater professional reach among solicitors, accountants and commercial estate agents with the added bonus that they will retain the clients business while seeking a suitable buyer or investor.

Savvy.ie will also provide access to key professionals making the process more accessible to the general public. With free unlimited uploads until the end of May, pricing for Savvy will be set at a keen advertising rate of E150 for 3 months per business advert.

"We see this as a new and accessible opportunity for both professional business providers, business owners and investors alike. We want to maintain as much value in these businesses transactions as possible, matching businesses with investors and service providers alike. Providing a platform for entrepreneurs to advertise businesses for sale, mergers or investment opportunities sought is something that is required in the Irish Market at present," Mr Brennan said.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 15:07:36 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22472</guid>
  
</item>


<item>
    <title><![CDATA[UK banks plan to shore up their cap base]]></title>
    <description><![CDATA[State-backed British lenders Lloyds Banking Group and Royal Bank of Scotland have agreed plans to shore up their capital with the financial regulator, removing a barrier to the government offloading its shares.

The regulator said today it had finalised capital requirements for the two banks and that the lenders had submitted their plans. Both banks said they did not need to issue new equity and could raise the necessary capital by selling assets and via restructuring plans already under way.

The banks need to show they are robust enough to return to private ownership after Britain pumped in a combined 66 billion pounds ($100 billion) to rescue them during the 2008 financial crisis. Both have since undertaken major restructuring, including asset sales and job losses, under new management.

"Having refocused their business, now is the time for a clear strategy on how to return RBS and Lloyds to the private sector in a way that protects value for the taxpayer," Finance Minister George Osborne said on Wednesday.

sborne indicated he would await the final recommendations of the Parliamentary Commission on Banking Standards, due to be made next month, before formulating plans.

Speculation that a sale of Lloyds shares may be imminent has risen in recent weeks after the bank's shares passed the 61.2 pence level which the government regards as break-even on its 20.5 billion pound investment.

A sale of shares in RBS would appear to be further away with taxpayers still sitting on a loss of over 5 billion pounds following the bank's 45.8 billion bailout. However, the government may consider other options such as a mass share distribution to the public.

The Bank of England said in March that Britain's banks must raise 25 billion pounds of extra capital by the end of the year to absorb any future losses on loans and said the Prudential Regulation Authority (PRA) would give banks specific guidance on their capital position by the end of May.

Industry sources and analysts had identified Lloyds and RBS as most likely to need extra capital. Lloyds was seen facing a shortfall of up to 5 billion pounds and RBS as much as three times that amount.

Neither the banks nor the PRA would confirm how much extra capital the banks needed. Shares in RBS and Lloyds were up 1.7 and 1.2 percent respectively at 1315 GMT.

Lloyds, which is 39 percent-owned by UK taxpayers, said it would not need to issue new equity or so-called contingent capital, which can convert into equity if market conditions markedly deteriorate.

The bank, which was informed of the PRA's conclusions by letter this week, said it expected to meet additional capital requirements by generating cash from its core business and through the disposal of non-core assets.

Lloyds has hired advisers for the possible sale of its Scottish Widows asset management arm and sold a 20 percent stake in wealth manager St James's Place, leaving it with a 37 percent stake which it could offload at a future date.

The bank is selling off non-core loans - those not deemed to fit with its long-term strategy - and has a target to offload at least 20 billion pounds worth of non-core assets this year. It is also reducing the size of its international business.

RBS, which is 81 percent-owned by taxpayers, has more to do.

The bank said it expected to improve its capital position and meet regulatory requirements through its current business plan. However, it warned it would not be able to implement all of the measures this year.

RBS is reducing the size of its investment bank, selling non-core assets and plans to sell 20-25 percent of U.S. arm Citizens in the next two years through a stock market flotation in New York.
(Reuters)

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 14:42:54 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22467</guid>
  
</item>


<item>
    <title><![CDATA[Ireland could reap re-shoring benefits]]></title>
    <description><![CDATA[
Ireland stands to reap the benefits from 
a new global trend in re-shoring, where 
corporations are increasingly shifting 
their division around the world.

In a recent survey of global Fortune 500 
companies, over 50pc stated that they 
would be re-shoring most of their 
manufacturing for cost, risk and market 
responsiveness improvements, or as part 
of a multi-sourcing strategy.

Leading manufacturers in Ireland 
gathered in Cork for the Cork 
Electronics Industry Association (CEIA) 
event to discuss the opportunity 
presented by right-shoring for Ireland.

"Manufacturing has evolved and we are 
continuously re-inventing our business 
processes in line with technological 
developments, client needs and customer 
demands. As the design and manufacturing 
process becomes more sophisticated, 
customisation and final configuration 
closer to the market is desirable and 
often necessary. Cost efficiency and 
competitiveness is vital in this 
industry, but adding value through 
innovation and value chain improvement 
is also critical, and herein lies the 
opportunity for manufacturing in 
Ireland", said Caroline Dowling, 
President (Integrated Network Solutions) 
at Flextronics, a global leader in 
electronics design, manufacture and 
supply chain solutions with plants in 
Cork and Limerick.

"We are championing a right-shoring 
strategy both in the US and in Europe as 
we are committed to "being in a market, 
to serve a market". For Ireland, this 
offers immense opportunities to serve 
the European market, using our 
engineering talent and ability to 
innovate, both in terms of product and 
process".

A variety of factors currently at play 
in world manufacturing means that the 
Irish manufacturing sector is facing 
healthy growth and should yield strong 
contributions for the economy. The 
Forfas report "Make it in Ireland: 
Manufacturing 2020", which outlines 
government strategy for the sector, 
suggests than an additional 20,000 jobs 
may be created in the sector in Ireland 
by 2016.

Sean Gayer, Chairman of the CEIA, 
commented that industry must work to 
ensure that the numbers of science and 
engineering graduates increases in the 
coming years. The potential to create 
jobs and further enhance Ireland's 
excellent reputation for product quality 
in manufacturing should be harnessed, 
and he added that the CEIA will continue 
to work closely with secondary and third 
level institutions in the Region.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 14:30:58 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22468</guid>
  
</item>


<item>
    <title><![CDATA[Ireland may see abrupt end to bond rally]]></title>
    <description><![CDATA[
Credit rating firms say that the rally 
in the sovereign bonds of highly 
indebted euro zone countries, including 
Ireland, that has pushed their borrowing 
costs down could go in to reverse again.

That would put Ireland and Portugal's 
bonds at risk of being pitched out of 
global indexes and send borrowing costs 
upwards again.

The view from the rating firms contrasts 
with the sanguine attitude of investors 
who, flush with central bank cash and 
reassured by the ECB's promise to take 
whatever measures are necessary to 
safeguard the common currency, have been 
buying lower-rated bonds because of the 
higher returns or 'yields' they earn on 
them.

Ireland has benefited hugely from this. 
Ireland's long term government bond 
yields have fallen to their lowest 
levels since 2006, pushing the yield 
curve below those of other stressed 
sovereigns in the euro area.

The Central Bank of Ireland only this 
morning pointed out that this 
improvement is due to both adherence to 
the programme of external assistance and 
last year's announcement by the ECB of a 
programme of Outright Monetary 
Transactions (OMT). As a consequence of 
this improvement in sentiment, both the 
sovereign and Irish banks have recently 
issued long-term debt - and at much 
lower cost than recent years.

Ireland and Portugal - whose bonds are 
already rated as 'junk', or below 
investment grade - are gradually 
emerging from international bailout 
programmes and returning to bond markets 
for their borrowing needs, while yields 
on benchmark bonds issued by Spain and 
Italy, two other countries that have 
felt the heat of the crisis, have fallen 
to around 2-1/2 year lows after hitting 
unsustainable peaks above 7 percent at 
crisis points last year or the year 
before.

Analysts say the recent market moves 
have been because plentiful liquidity 
provided by the ECB and other major 
central banks has outweighed 
unfavourable fundamental factors such as 
the fact that most euro zone economies 
continue to contract, while annual 
budget deficits and public debt levels 
remain stubbornly high.

But ratings agencies warn that may 
change.

"The current favourable market 
environment is not something that 
Moody's is sure will be sustained," 
Alastair Wilson, chief EMEA credit 
policy for the agency, told Reuters. 
"The longer the underlying problems - 
growth, debt, institutions - remain 
unaddressed, the greater the potential 
for further shocks."

Rating firms have a track record of 
making decisions that at times contrast 
with the market sentiment. In the past 
year, Moody's reaffirmed a negative 
outlook for the ratings of Ireland, 
Portugal and Italy, Fitch downgraded 
Italy, while Standard and Poor's 
stripped France of its AAA rating.

The most recent example was last month's 
downgrade of Slovenia by Moody's, just 
before the country avoided a bailout by 
selling $3.5 billion of bonds in a sale 
that attracted plentiful buyers.

The downgrade did not cause forced 
selling of Slovenian bonds as they are 
not part of major bond indexes, but a 
similar move on larger countries is 
likely to be more damaging.

Rated only one notch above junk by 
Moody's and Standard and Poor's, Spain 
is most at risk of forced selling, since 
some institutional investors only hold 
investment grade bonds or constituents 
of investment-grade bond indexes.

"They were not at all shy of junking 
Slovenia, and this could change market 
perception of how high the bar is to 
junk Spain," said David Schnautz, rate 
strategist at Commerzbank in New York.

Data on how many funds are tracking the 
bond indexes Spain is part of is not 
readily available. An exclusion from all 
indexes could cause 30-40 billion euros 
of selling - 5-6 percent of outstanding 
central government debt, JPMorgan 
estimates.

Analysts say domestic banks and foreign 
hedge funds - using the cheap cash 
available - are likely to step in and 
buy the bonds that institutional 
investors sell, but they would demand 
more of a premium over safe-haven German 
bonds.

"A year ago it would have moved the 
(German/Spanish 10-year yield) spread by 
200-300 basis points or more," said 
JPMorgan strategist Nikolaos 
Panigirtzoglou.

"Now, because of the ...(ECB) backstop 
and limited (euro zone) break-up risks, 
a downgrade to junk would probably move 
it by less than 100 bps, everything else 
being equal."

Still, 100 bps is how much the 10-year 
Spanish/German yield spread has 
tightened in 2013 alone. It last traded 
at about 285 bps. ING estimates such a 
move in a short period of time could 
have knock-on effects on Italy.

Easy money conditions are intended to 
buy time for national and euro zone 
policymakers to fix the structural 
deficiencies that led to the debt 
crisis, the ECB says. But the risk is 
that they do the exact opposite, Moritz 
Kraemer, head of European sovereign 
ratings for Standard and Poor's, told 
Reuters.

"If conditions are perceived to be easy, 
the incentive to engage in reforms may 
be reduced, which is the complacency 
risk," Kraemer said. He added that S and 
P regards central bank-influenced 
liquidity conditions as potentially 
"cyclical, volatile and outside the 
immediate control of the sovereign".

The ECB has not printed money like the 
Federal Reserve, the Bank of England and 
the Bank of Japan have, but it has 
provided banks with unlimited long-term 
loans (LTROs) and created a just-in-case 
bond buying programme (OMT), as yet 
untested.

"The ECB's willingness to support the 
market with LTROs and the OMT is ... 
positive. However, it is not going to be 
able to solve the crisis," Wilson of 
Moody's said.

Fitch Ratings did not respond to Reuters 
requests for comment. The agency rates 
many euro zone countries higher than its 
competitors. 


(Reuters) with additional 
BusinessWorld.ie reporting

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 14:21:10 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22469</guid>
  
</item>


<item>
    <title><![CDATA[ISEQ falls for second day, Fed eyed]]></title>
    <description><![CDATA[The ISEQ fell for the second straight day today with global investors keeping an eye on this afternoon's speech from Federal Reserve chief Ben Bernanke.

The ISEQ fell 20.56 points to 4,039.61.

European shares fell from multi-year highs today, with luxury goods stocks among the worst performers, as some investors sold in anticipation of a near-term pull-back in the market.

Federal Reserve chief Ben Bernanke is due to speak later in the day and the U.S. central bank is also due to release minutes of its May policy meeting. Investors are concerned that the Fed will start scaling back monetary stimulus measures which have helped drive this year's steep rally in world stock markets.

Shares in fresh foods group, Total Produce, were flat at E0.67. Total Produce has reiterated its full-year guidance of EPS of 8.0-8.8c (Davy: 8.4c), +3.6pc year-on-year. Retailers, large and small, are refocusing efforts on their fresh offering. "Total Produce is well positioned to benefit from such a shift. In addition, it is expanding its geographic footprint through its recent US acquisition. We reiterate our 'Outperform' rating," said Davy.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 12:56:36 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22465</guid>
  
</item>


<item>
    <title><![CDATA[Central Bank identifies risks to economy]]></title>
    <description><![CDATA[The Central Bank today published its latest Macro Financial Review in which it identified a number of risks facing the country, not lease the decline in our trading partners and our banks' ability to recover.

It said that conditions remain "challenging" as conditions in economies of our main trading partners has worsened.

"Given Ireland's significant dependence on exports, which amount to more than 100pc of GDP, this development is one of the key external macro-financial vulnerabilities at present (Chart A1). Nevertheless, exports continue to contribute to overall economic growth. Ireland recorded positive growth in 2012, although this was somewhat lower than in 2011," the report said.

n a more positive note, the Review said confidence in the Irish sovereign and domestic banks has continued to improve since the last report. Ireland's long term government bond yields have fallen to their lowest levels since 2006, pushing the yield curve below those of other stressed sovereigns in the euro area.

Turning to fiscal adjustments, it said that a significant portion of the required fiscal adjustment in Ireland has been achieved and funding pressures have been relieved by 
both a replacement of government-issued Promissory Notes and the agreement in principle to a maturity extension of some of Ireland's European Financial Stability 
Facility loans.

"However, the underlying deficit and debt burden remain elevated and there is little room for complacency if deficit targets are to be adhered to and a reduction in the debt-to-GDP ratio is to occur in the coming years. A rapid reappraisal of sovereign risk by financial markets could reverse these positive developments and hinder continued market access and debt sustainability in the medium term. Households and small and medium enterprises (SMEs) continue to reduce their debt. While this rebalancing is necessary, it constrains domestic demand at a time when the public sector is undertaking an even larger correction."

It said that the biggest uncertainty facing Ireland is our banks and their ability to support the real economy with credit at sustainable rates.

The stock of impaired mortgages and SME loans has continued to rise and is the main short-term risk, it notes.

Mortgage arrears have been driven by the fall in property prices, the elevated unemployment rate, and the extensive output loss associated with the crisis since 2008. Just under 95,000 loans or approximately 11.9pc of the total stock of primary dwelling loans were in arrears for more than 90 days in December 2012, compared with 11.5per cent in September 2012.

"Effective arrears management is necessary to eliminate the uncertainty about individual households' and banks' balance sheets. Recent mortgage arrears targets announced by the Central Bank of Ireland are intended to form the basis for a systematic work-out of arrears. These targets are applicable to both banks subject to the Financial Measures Programme and foreign subsidiaries of European banks operating in the domestic retail market. Related to this, the recent reform of the bankruptcy process must be followed by efficient implementation to ensure problem debt is systematically reduced over time," the Review said.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 12:52:05 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22466</guid>
  
</item>


<item>
    <title><![CDATA[Bruton calls for global tax clampdown]]></title>
    <description><![CDATA[The international community needs to work together to stop large multinationals aggressively playing one country's tax code off against another, Minister for Enterprise Richard Bruton said today.

"They play the tax codes one against the other, that is tax planning and I think we do need international cooperation through the OECD to deal with the aggressive nature of that," Minister Bruton told RTE.

His comments come as the Taoiseach travels to an EU Leaders' Summit with tax top of the agenda.

The meeting will discuss how to combat aggressive tax avoidance by major companies such as Amazon, Google and Apple at a summit, and cut the estimated E1 trillion a year the EU loses in tax.

The four-hour summit was originally called to discuss energy policy, but investigations in Britain, France and the United States exposing how little tax major international companies have been paying by carefully structuring their European operations has forced the issue to the top of the agenda.

France and Britain in particular have grown concerned by the sheer scale of the legal tax schemes, with a U.S. investigation revealing on Monday that Apple Inc had paid just 2 percent tax on $74 billion in overseas income, largely by exploiting a loophole in Ireland's tax code.

That followed reports that the British unit of Amazon paid just $3.7 million tax on 2012 sales of $6.5 billion, and similar revelations concerning the UK operations of Google and Starbucks.

In all, officials estimate that EU governments miss out on around 1 trillion euros ($1.3 trillion) a year through the legal tax avoidance techniques employed by such companies and illegal tax evasion.

"A lot of these revenues (from the digital economy) are not getting taxed," said a French diplomat briefing reporters in Paris ahead of the summit. "We need to find a way of bringing home the tax on these activities."

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 12:14:18 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22462</guid>
  
</item>


<item>
    <title><![CDATA[IMF urges Britain to do more for growth]]></title>
    <description><![CDATA[The International Monetary Fund called on Britain's government today to do more to speed up slow economic recovery, hinting that the country might be able to afford to borrow more to fund investment.

The report is unlikely to spur finance minister George Osborne to deviate from his flagship austerity programme, and does not directly urge him to defer planned spending cuts.

The IMF expressed concern that a new government programme to boost the housing sector might simply push up prices and called for a "clear strategy" on returning state-controlled Royal Bank of Scotland and Lloyds Banking Group to private ownership.

In an annual review of Britain's economic policies, the Fund said Britain had shown "welcome flexibility" in its push to fix one of the biggest budget deficits in the European Union and noted "encouraging" signs that the economy was on the mend.

"The UK is, however, still a long way from a strong and sustainable recovery. Per capita income remains 6 percent below its pre-crisis peak, making this the weakest recovery in recent history," it said.

It said "planned fiscal tightening will be a drag on growth" and called for several measures to bring about a speedier recovery that would help fix the deficit, urging Britain to take advantage of low borrowing costs to fund more investment.

"Given the tepid recovery, policy should capitalize on nascent signs of recovery to bolster growth, notably by pursuing measures that address supply-side constraints and also provide near-term support for the economy," the IMF said in a statement.

"In the current context in which labor is under-utilized and funding costs are cheap, the net returns from such measures are likely to be particularly favorable."

sborne has long said that making a conscious choice to borrow more than planned - rather than just reacting to a weaker economic environment - would damage Britain's credibility with the financial markets that fund Britain's debt. (Reuters)

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 12:10:57 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22463</guid>
  
</item>


<item>
    <title><![CDATA[Perm tsb to lend 9 times more this year]]></title>
    <description><![CDATA[
permanent tsb is back in the banking 
business with plans to approve lending 
of up to nine times more this year than 
in 2012, the Group's Chairman told its 
AGM today.

Chairman Alan Cook said the Group is 
competing again for mortgage business, 
car loans, educational loans and current 
accounts.

"We've been able to open the doors to 
lending through permanent tsb again," 
said Mr Cook.

Mr Cook said the Group's Bank plus Two 
strategy, designed to create three 
distinct businesses, shows it is making 
"real progress" in addressing its 
problems and taking decisive action to 
improve the position of customers and 
the taxpayer.

"Our strategy is now settled and clear. 
It is about creating three distinct 
businesses from the overall Group," said 
Mr Cook.

"The first of these will be a viable, 
efficient and profitable bank - 
permanent tsb bank - that can lend 
money, service its customers' needs and 
compete with the larger banks in 
Ireland."

"Alongside the bank we have created two 
special business units - the Asset 
Management Unit for our challenging 
loans in Ireland and a 'Non-Core' unit. 
Through these units, we can provide a 
dedicated, sophisticated and sympathetic 
response to customers whose loans are in 
arrears or find a better home for those 
businesses that do not fit with our 
long-term strategy".

Mr Cook said the Group has three major 
priorities: To restructure the business, 
creating a viable competitive banking 
force for the Irish marketplace; to work 
closely with customers in arrears to 
help them manage their challenges and to 
use capital efficiently in the 
management of 'Non-Core' portfolios.

"It has been another very challenging 
year for the Irish economy in general 
and for this company, along with many 
others. But it has been one during which 
we have made real progress in addressing 
our problems and taking decisive action 
to help the position of our customers 
and the position of the taxpayer, who 
has invested so heavily in our business 
and whose support has been critical to 
us over the past number of years."

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 11:53:15 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22464</guid>
  
</item>


<item>
    <title><![CDATA[Dublin Declaration frames EU innovation]]></title>
    <description><![CDATA[A major two day international Open Innovation 2.0 conference closed in Dublin Castle last night with overwhelming agreement on the drafting of "The Dublin Declaration".

This ten point declaration, drafted with the intention of developing a widespread innovation literacy in Europe, will be presented to Jose Manuel Barroso, President of the European Commission.

The Open Innovation 2.0 - Sustainable Economy and Society welcomed over 75 international experts who addressed more than 350 delegates from around the world, highlighting how economic growth and job creation can be generated by innovation and technology.

"The Dublin Declaration" will seek to position Open Innovation 2.0 as the next new official language of the European Union, highlighting the importance of adopting and embracing innovation and technology to stimulate economic growth and generate job creation in Ireland and across the EU.

Key points in the declaration included: a call to move from European Research Area to European Innovation Ecosystem; raising awareness of the importance of creating incentives to encourage openness to innovation and experimentation; recognising honourable failure as a positive; stimulate high expectation entrepreneurs; foster the essential collaboration between citizens, businesses, universities and government; and an overall call to create an EU Innovation Strategy leveraging the USA example. The delegates resolved that the Innovation Luminary Awards would become an annual event within the European Calendar.

Presenting the declaration to the conference, Prof. Martin Curley, Chairman EU Open Innovation group and Vice President, Intel Labs Europe, Intel Corporation, called on those present to support the ideals and mission of the declaration. "With the support of the delegates and speakers here, at the end of what has been an enlightening and very positive two days of discussion, we have co-created an innovation manifesto which can now bring real change to Europe by creating more wealth, better welfare and improved wellbeing."

"This conference, and The Dublin Declaration, has drawn attention to one of the most crucial elements of economic recovery - how to harness innovation and technology to bring about job creation. The key to job growth in this economy lies in innovation and we welcome the development of this significant declaration in Dublin, positioning the city and the country to take the lead on embracing innovation," commented Peter Finnegan, Director of Office of International Relations and Economy, Dublin City Council.

"Faced with our current economic challenges we need to find new and innovative ways to tackle unemployment. Open innovation as a driving force within a digital economy and society can create thousands of jobs in Dublin and this declaration shows that the conference has been hugely successful at developing real solutions which can be applied Europe-wide."

The conference was organised by Dublin City Council, Intel Labs Europe and Trinity College Dublin and supported by the European Commission.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 11:49:48 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22455</guid>
  
</item>


<item>
    <title><![CDATA[Taoiseach joins EU leaders to talk tax]]></title>
    <description><![CDATA[Taoiseach Enda Kenny joins European leaders to discuss how to combat aggressive tax avoidance by major companies such as Amazon, Google and Apple at a summit, and cut the estimated E1 trillion a year the EU loses in tax.

The four-hour summit was originally called to discuss energy policy, but investigations in Britain, France and the United States exposing how little tax major international companies have been paying by carefully structuring their European operations has forced the issue to the top of the agenda.

France and Britain in particular have grown concerned by the sheer scale of the legal tax schemes, with a U.S. investigation revealing on Monday that Apple Inc had paid just 2 percent tax on $74 billion in overseas income, largely by exploiting a loophole in Ireland's tax code.

That followed reports that the British unit of Amazon paid just $3.7 million tax on 2012 sales of $6.5 billion, and similar revelations concerning the UK operations of Google and Starbucks.

In all, officials estimate that EU governments miss out on around 1 trillion euros ($1.3 trillion) a year through the legal tax avoidance techniques employed by such companies and illegal tax evasion.

"A lot of these revenues (from the digital economy) are not getting taxed," said a French diplomat briefing reporters in Paris ahead of the summit. "We need to find a way of bringing home the tax on these activities."

fficials said French President Francois Hollande could raise the issue with other leaders at the meeting, though it was unclear what agreement could be reached with little advanced preparation and just four hours of talks scheduled.

A draft of the summit's declaration, which is agreed in advance but can be changed, set out nine proposals for strengthening tax policy and coordination, including fighting tax avoidance schemes and the process of routing profits abroad.

"Work will be carried forward as regards the Commission's recommendations on aggressive tax planning and profit shifting," a draft seen by Reuters read.

While there is common consent among EU leaders that action needs to be taken to close loopholes and level the playing field on tax policy, little has been done on the issues despite regular lobbying by the Organisation for Economic Co-operation and Development (OECD) and other international organisations.

In a report in March last year, the OECD, a club for wealthy countries, set out in detail how companies were using "hybrid mismatch arrangements" to avoid paying taxes, the very technique that Apple is alleged to have used in its tax planning.

"We have got to make sure as we set those tax rates that companies pay taxes, and that means international collaboration, the sharing of tax information," said British Prime Minister David Cameron as he arrived at the summit.

Cameron has put tax policy on the agenda of the G8 meeting taking place next month in Ireland.

But officials played down the possibility of immediate steps to close tax loopholes or any naming and shaming of companies in the final summit declaration, saying it was primarily up to EU member states to craft the necessary legislation, and to work through wider international forums such as the OECD.

"But while companies may be using loopholes to pay as little tax as possible, the truth is it's a national issue," said an EU official preparing the summit. "It's up to the relevant member states to change their tax codes and tighten the net."

The official said the most likely outcome from the talks was tougher language on strengthening bilateral tax treaties and bolstering so-called "anti-abuse" rules in national legislation.

Eversheds, a global law firm dealing with tax issues, said that while recent cases involving high-profile U.S. companies had pushed the tax issue to the top of the global agenda, it could not be tackled with any quick or immediate steps.

"While the issues deserves this top-level attention, the public should not expect any game-changing developments, and indeed it would be wrong for the EU to try to tackle the issue on its own," said Ben Jones, a tax expert at the firm.

"Uncoordinated attempts by individual countries or blocs of countries to tackle the issue may actually create more tax 'loopholes' or have a detrimental impact on businesses that do not engage in aggressive tax planning."

France has already shown its willingness to take on major U.S. companies, with authorities raiding Google in a 2011 investigation into whether its Paris office conducts sales work. The company was asked to pay 1.7 billion euros in back taxes.

A similar issue has arisen with how Google operates in Britain, with questions raised about whether its sales staff are based abroad, as the company maintains, or in the country, which would create a liability to UK tax.

-oogle says it follows tax rules everywhere it operates and that references to selling in job ads for British-based staff reflect the fact that it likes to hire people with a sales background.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 11:39:01 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22456</guid>
  
</item>


<item>
    <title><![CDATA[Dubliners on top incomes, Donegal lowest]]></title>
    <description><![CDATA[Dublin has the highest disposable income per person, followed by Kildare and Limerick with the lowest disposable income per person in Donegal, according to figures from the CSO today.

The next lowest incomes are in Offaly and Monaghan.

Dublin has the highest rate of employment and the lowest rate of unemployment and the Border region has the lowest rate of employment and the South-East has the highest rate of unemployment, according to the report Regional Quality of Life in Ireland, 2013 published by the CSO today.
 
Close to one in six residents of Dublin are not Irish compared with less than 10pc of residents of the Mid-West and South-East regions.

ver a third of Dubliners whose full-time education has ceased have a 3rd level qualification compared with a national average of 29pc. In the Midland region just 23pc have a 3rd level qualification.

Counties along the west coast and Wexford have more than one in five dwellings vacant while only 5pc are vacant in South Dublin.

The highest average property prices in 2011 for both new and second hand dwellings were in Dublin while the lowest were in Waterford.

Nearly four out of ten people in the Border region have a medical card and no private health insurance compared with less than a quarter in Dublin. Mayo has the fewest drivers with penalty points while Kildare has the highest. Workers in the Mid-East region have the longest travel time to work while the shortest journey times are in the South-West.

ne in eight residents of Ireland in 2011 were not Irish, according to the Census of Population. This varied from 16pc in Dublin to just under 10pc in the Mid-West and South-East regions. Approximately one in five people in Galway City were not Irish compared to 8pc in Donegal. About one quarter of the population in Meath and Laois were aged 0-14 in 2011 while 15pc in Cork City were in this age group.
 
In 2011 15pc of all accommodation was vacant. The Border and West regions had the highest vacancy rates with more than one in five dwellings vacant, with counties along the west coast and Wexford also having rates above 20pc. Over a third of dwellings in the Midland and Mid-East regions were built between 2001 and 2011 compared to a rate of 22pc in Dublin. Detached houses accounted for 12pc of all dwellings in Dublin while elsewhere the rate ranged from 46pc in the Mid-East to 65pc in the West. Dublin had the highest new (E290,668) and second-hand (E330,894) average property prices in 2011 while Waterford recorded the lowest new (E205,598) and second-hand (E190,315) prices.
 
Dun Laoghaire-Rathdown had the highest proportion of people in the social class professional workers at 15pc while Monaghan, at 4pc, had the lowest. Over a third of people in Monaghan were in the skilled or semi skilled social classes compared to just 14pc in Dun Laoghaire-Rathdown.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 11:35:38 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22457</guid>
  
</item>


<item>
    <title><![CDATA[Wholesale prices rise 1.9pc in April]]></title>
    <description><![CDATA[Monthly factory gate prices increased by 0.3pc in April 2013 compared to a decrease of 0.5pc for April of last year bringing the annual percentage change showed an increase of 1.9pc in April 2013, latest CSO data shows.

This is compared with an increase of 1.1pc in the year to March 2013.

In the month, the price index for export sales increased by 0.5pc, while the index for home sales decreased by 0.3pc. In the year there was an increase of 2.2pc in the price index for export sales (this can be influenced by currency fluctuations) and an increase of 0.9pc in respect of the price index for home sales.

In the month, the most significant changes were increases in Meat and meat products (+3.5pc), Computer, electronic and optical products (+1.6pc) and Dairy products (+1.0pc), while there were decreases in Fish and fish products (-3.0pc), Motor vehicles, trailers and semi-trailers (-1.6pc), and Other food products including bread and confectionary (-0.7pc).

Contributing to the annual change were increases in Computer, electronic and optical products (+5.7pc), Meat and meat products (+4.5pc) and Basic pharmaceutical products and pharmaceutical preparations (+1.7pc), while there were decreases in Electrical equipment (-3.3pc), Chemicals and chemical products (-3.1pc) and Other food products including bread and confectionary (-0.3pc).

The yearly price index for Mining and quarrying increased by 2.9pc while the monthly index decreased by 1.8pc.

Building and Construction All materials prices increased by 1.4pc in the year since April 2012. The most notable yearly changes were increases in Glass (+10.4pc), PVC pipes and fittings (+9.9pc) and Stone (+6.8pc) while there were decreases in Paints, oils and varnishes (-5.8pc), Other Structural steel (-3.8pc) and Hardwood (-2.4pc). Building and Construction All material prices showed an increase of 0.2pc for the month.

Year on year, the price of Capital Goods increased by 0.7pc, while the monthly price index showed no change.

The price of Energy products decreased by 2.1pc in the year since April 2012, while Petroleum fuels decreased by 5.2pc. In April 2013, the monthly price index for Energy products decreased by 0.8pc, while Petroleum fuels decreased by 2.1pc.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 11:14:30 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22458</guid>
  
</item>


<item>
    <title><![CDATA[Irish corporate deals top E5.5bn in Q1]]></title>
    <description><![CDATA[Irish trade sales, buyouts and acquisitions figures for the first quarter of this year shows that deal values topped E5.5 billion, largely thanks to Elan's Tysabry drug asset disposal.

The Investec M and A Tracker Survey for Q1 2013 shows that there was a quarter-on-quarter decline of 11.5pc in the number of deals recorded in comparison to deals recorded during the last quarter of 2012.

The really significant level of deal value recorded in Q1 2013 (a level not seen since Q3 2010 when AIB disposed of its Polish operations and Ardagh acquired Impress Holdings) is attributable to the disposal of the Tysabri assets by Elan to Biogen Idec.

As a result of this transaction alone, the Health and Pharmaceutical sector accounted for 59.0pc of the total deal value recorded, although this only accounted for 5.6pc in total volume.

The next largest sector was Financial Services, which accounted for 23.7pc of deal value, but only 7.4pc of total volume. This was due to the E1,300m sale of Irish Life by the State to Great-West Lifeco Inc. of Canada in what would be a significant transaction in any quarter. When the Elan Corporation transaction is removed, Q1 2013 still showed a strong increase in deal value of 40.1pc on Q4 2012.

The Investec M and A Tracker Survey, from Investec Corporate Finance reveals that Irish companies continued to acquire abroad with 25 foreign acquisitions recorded during the quarter.

CRH accounted for 15 of these similar to the 14 transactions recorded in Q4 2012 out of a total of 30 foreign acquisitions by Irish companies.

The report shows that the Building, Construction and Property sectors saw the most activity in Q1 2013; recording eighteen deals during the period, which amounted to 33.3pc of the total deal volume, and driven in the main by the aforementioned transactions by CRH with an reported deal value of E385m. Individual deals disclosed included the acquisition of Southern Cement ltd for a reported E22.5m, a 98.75pc stake in Cementos Lemona and the acquisition of Expocrete Concrete Products for an undisclosed amount through its US subsidiary, Oldcastle. Other deals which took place in this sector include Loews Hotels's acquisition of Back Bay Hotel a subsidiary of the Doyle Collection and Palladin Hotels and Resorts' acquisition of Sheen Falls Lodge for E5m.

The Food / Food Services sector saw a number of Irish Plc.'s involved in transactions during the quarter. Kerry Group completed two transactions with the acquisition of both Big Train and Orley Foods Ltd for undisclosed amounts, while C and C Group. acquired a 50pc stake in Wallaces Express Ltd. A number of private companies were also active in the sector, including Tayto Ltd and ABP Foods, who acquired Midland Snacks Ltd and the Debbie and Andrew-Sausage Brand respectively.

The IT and Telecoms and Professional and Technical sectors each accounted for 13.0pc of the total deal volume with a total of seven deals each recorded during the quarter. IT and Telecoms saw three transactions disclose a deal value. They were Synchronoss Technologies (through its acquisition of NewBay for E42m), Ladbrokes (through its acquisition of Betdaq Ireland Ltd for a reported E34m) and Saongroup Ltd (with its acquisition of a 90pc stake in ChinaHR.com for E22m). Only two of the seven deals recorded in the Professional and Technical sector disclosed deal values (Tekelek Europe and their acquisition of Ingenion Design Ltd for E2.4m and Greenworld International Resources Ltd.'s acquisition of a 76pc stake in 4Front Contracts Management for E0.1m).

Speaking on the survey, Jonathan Simmons, Director, Investec Corporate Finance, said: "Overall, the start to 2013 was reasonably good with some sizeable transactions taking place albeit with a quarter-on-quarter decline of 11.5pc in the deal volume recorded at 54 deals in comparison to the 61 deals in the last quarter of 2012. We expect that the IT &amp; Telecoms, Financial services and Food / Food Services will continue to see a significant number of transactions throughout the year, albeit with different drivers of activity and deal rationale. 2013 will also see increased activity involving Government owned assets and businesses including semi-states. We also expect to see a marked increase in deals driven by bank restructurings and other administrative processes, continued foreign acquisitions by large Irish companies and potentially some increase in conventional buyout transactions."

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 11:08:19 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22459</guid>
  
</item>


<item>
    <title><![CDATA[Britvic to merge Irish and British units]]></title>
    <description><![CDATA[Soft drinks maker, Britvic, today said it is to combine its British and Irish operations under a single leadership team as part of a major cost saving programme.

This will also see the group shut down two factories in Britain and a warehouse in Northern Ireland as it seeks to save Â£30m in costs annually by 2016.

The news comes after it reported a 27.6pc growth in profit for the 28 weeks ending 14 April, 2013.

The company posted an EBITA of Â£53.6m (E62.8m) for the first-half, with the EBITA margin increasing 180 basis points. The group's revenue rose 0.4pc for the 28 weeks ending 14 April, 2013.

Britvic said that while the Irish market remains challenging, its own own brands continued to outperform the market. Volumes sold in the 28 weeks to April 14 were down 5.6pc, while revenue for the period declined by 7.6pc to E67.2m from E72.7m.

A merger between Britvic, which produces PepsiCo brands such as Pepsi, Mountain Dew Energy and 7UP in Britain and Ireland as well as products such as Robinsons squash and Tango, and AG Barr, maker of orange fizzy drink Irn-Bru, was agreed last November but has since been referred to Britain's competition watchdog.
The UK Competition Commission is expected to announce its final decision by July and the board will then decide whether to go ahead with the deal, said Chairman Gerald Corbett.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 10:58:32 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22460</guid>
  
</item>


<item>
    <title><![CDATA[IDA boss rejects tax haven claims]]></title>
    <description><![CDATA[Ireland's tax regime is totally transparent and in no way could this country be described as a "tax haven", IDA Ireland Chief Executive Barry O'Leary said this morning.

His comments come following last night's US Senate subcommittee, which was told that Apple had negotiated a 2pc tax rate with the Irish Government - an allegation which, if true, could mean that Ireland is in breach of EU law.

Speaking on RTE's Morning Ireland, Mr O'Leary said: "Ireland competes on the global stage for investment. There are many countries that have good tax offerings, including individual states in the United States and countries like Luxembourg, Belgium, Holland and the UK increasingly."

"There is global competition and tax happens to be one of the areas that Ireland competes for global investment," he added.

Mr O'Leary also said it was not true that Ireland had a special deal with Apple on the tax rate it pays.

However, he was unable to deny that Apple paid an effective tax rate of 2pc, as outlined at the Senate hearing.

"There is no special deal for Apple or any other company," he said.

"The important thing is, and for Ireland's credibility, is the transparency of the 12.5pc (corporation tax rate) for activities that are carried out in Ireland. There may be a case of where they refer to non-tax resident entities that give them an overall global tax-rate more comparable to some of their competitors, but there is no special deal for them."

Sinn Fein's Pearse Doherty today called on the Taoiseach to clarify whether Apple's assertions that it pays just 2pc tax is the case or not.

"Since 2003 this has meant that Apple has paid less than two per cent corporation tax. The Taoiseach needs, as a matter of urgency, to come to the Dail and put right the record. Through the hearings this state has been likened to a tax haven this is undermining our international reputation," he said.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 10:51:26 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22461</guid>
  
</item>


<item>
    <title><![CDATA[Card fraud losses slump 21pc last year]]></title>
    <description><![CDATA[There was a major decrease of 21pc in the value of credit and debit card fraud losses in Ireland in 2012, latest figures show.

This comes after an increase of 24pc year on year between 2009 and 2011.

A total of E20.4 million was lost to fraud on Irish issued payment cards (including credit, debit and ATM cards) in 2012. The considerable drop compares well with the E25.7 million worth of losses recorded in 2011, the Irish Payment Services Organisation (IPSO) said.

Card Not Present fraud (CNP fraud where cards are used fraudulently on the internet, by mail order or over the phone) remains the biggest issue for the industry at 79pc of the total fraud. Counterfeit and skimming fraud is next at 14pc where cards are skimmed in Ireland and used to withdraw cash at ATMs abroad in countries where Chip and PIN has not yet been implemented.

The figures show that 4pc of the card fraud related to unauthorised sales on stolen cards where criminals shoulder-surfed while consumers keyed in their PINs at ATMs or in shops, before stealing the card, wallet or handbag.

A total of E24.4 billion worth of sales took place on credit and debit cards in 2012. The card fraud losses reflect a 0.08pc portion of those sales. This is down by 3 basis points from a 0.11pc fraud to sales ratio in 2011 when the turnover was E23.5 billion, IPSO said.

Speaking today, Una Dillon Head of IPSO Card Services and Chairman of the IPSO Card Fraud Forum said that the new trend is welcome but the value lost is still a considerable amount and all stakeholders including banks, consumers, shops and police need to continue to work together to help fight this organised crime.

"The card payments industry is more active than ever on fraud prevention. A lot is being done, with IPSO managing a national forum on fraud, running public awareness campaigns and working directly with retailers and Trade Associations. The retail banks rolled out anti-skimming equipment on all ATMs and in shops and dedicated bank staff work together with representatives from the Garda Bureau of Fraud Investigations on a daily basis which has led to a sizeable number of relevant arrests in the past few years."

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 10:41:05 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22449</guid>
  
</item>


<item>
    <title><![CDATA[Total Produce confirm 2013 EPS target]]></title>
    <description><![CDATA[Fresh produce company, Total Produce, today said that its previously announced target of adjusted earnings per share in the range of 8.00 cent to 8.80 cent remains unchanged.

In an interim management statement this morning, it said that, since the year end, the group concluded an agreement to acquire a 65pc shareholding in the Oppenheimer Group, in two stages over five years.

The acquisition of a 35pc shareholding was completed in January 2013 for an initial cash payment of E11.4 million.

ppenheimer is a leading provider of fresh produce throughout the USA and Canada with last reported sales of E410 million.

It operates from 13 locations throughout the USA and Canada.

In addition in April 2013, the Group completed the sale of its 25.3pc shareholding in Capespan Group Limited to Zeder Financial Services Limited for a cash consideration of E22 million.

"Total Produce continues to pursue attractive acquisition opportunities to further expand the Group," it said.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 10:34:58 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22450</guid>
  
</item>


<item>
    <title><![CDATA[Ashford Castle sold to Red Carnation]]></title>
    <description><![CDATA[The iconic Ashford Castle in Cong, Co, Mayo has been sold to Red Carnation Hotels for around E20m.

The Guinness family's ancestral home was put on the market last October by its receivers with a guide price of E25 million, about half of what developer Gerry Barrett paid for the property six years ago.

The landmark 83-room property, where scenes of "The Quiet Man" starring John Wayne were filmed, was sold on behalf of receiver Ernst and Young. through broker Savills Plc (SVS), Savills said in a statement.

"Ashford Castle is the jewel in the crown of Irish hospitality," Tom Barrett, head of Savills's hotel and leisure unit in Ireland said in the statement. "It is a strong vote of confidence in the future of the industry from a leading international hotel and travel group."

It attracted bidders from the U.K., Europe, Asia, the U.S. and Australia, according to the statement.

A plan to develop 13 penthouse bedrooms, 30 lodges and extend the 9-hole golf course to 18 holes was drawn up and never completed, London-based Savills said in a statement when the hotel went up for sale.

Red Carnation is a closely held hotelier that runs 14 four-and five-star properties, including the Rubens at the Palace, the closest hotel to London's Buckingham Palace, according to its website.

Bank of Scotland (Ireland) unit appointed a receiver to Ashford Castle Properties Ltd. and Ashford Castle Estate Ltd. in November 2011, according to Iris Oifigiuil, the State Gazette.

<br/>]]></description>
    
    <pubDate>Wed, 22 May 2013 10:31:29 GMT</pubDate>
    
        <guid>http://www.KBC.ie/cat_extra_news.jsp?i=22451</guid>
  
</item>


</channel>
</rss>