Opening Bell: Rating agency's Irish warning, the Brexit blame game, Toyota's recall

Get up to speed with today's breaking Irish and international business news

Ratings agency Fitch says that Ireland is facing an increase in unemployment and lower economic growth following the UK's decision to leave the EU.

It adds that the vote is unlikely to have an immediate effect on Ireland's sovereign rating but "a medium-term rating impact would be possible if the economic dislocation of Brexit were to prove severe."

The main factors that it believes will damage Ireland's outlook are the introduction of new trade barriers between Ireland and the UK - and a possible weakening of the Northern Irish peace process.

______________________________________________________

David Cameron has told EU leaders he lost the Brexit referendum because so many voters believed there was no control over immigration from Europe.

Speaking to leaders at an EU dinner in Brussels, the outgoing British PM warned leaders they could not "shy away" from the issue.

Failure to tackle immigration could scupper any chance of a UK-EU trade deal when a new prime minister takes over in September.

Mr Cameron was speaking after Germany's Angela Merkel warned the UK must accept free movement if it wants to retain single market access.

She assured her parliament she would not allow the UK to "cherry-pick" favoured elements of the EU package.

"If you wish to have free access to the single market then you have to accept the fundamental European rights as well as obligations that come from it," she said.

______________________________________________________

Jerome Powell has become the first member of the US Federal Reserve's Board of Governors to comment on the economic impact of Friday's vote.

He says that it is too soon to measure the effects that the referendum will have on the global economy, but it has the potential to create economic headwinds to slow global growth.

"The risks to the global outlook were somewhat elevated even prior to the referendum, and the vote has introduced new uncertainties," he said.

The disruption caused by the result is expected to delay further interest rate hikes in the US.

______________________________________________________

Toyota is recalling more than 1.4 million cars worldwide over faulty airbags - the recall affects 2010-2012 hybrid Prius and Lexus CT200h cars.

It covers airbag inflators that could have a small crack in a weld, which could lead to the separation of the inflator chambers.

The Japanese carmaker said the airbags on the affected models could partially inflate and the inflator could enter the vehicle interior, increasing the risk of injury.

The company said it was not aware of any injuries or deaths related to the recall.

 

Additional reporting by IRN