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Opening Bell: Ryanair's streak continues, Ibec wants more government spending, Bank of Ireland ups SME lending

Ryanair has reported a 25 percent increase in first-quarter net profit. The airline says its prof...
Newstalk
Newstalk

07.41 27 Jul 2015


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Opening Bell: Ryanair'...

Opening Bell: Ryanair's streak continues, Ibec wants more government spending, Bank of Ireland ups SME lending

Newstalk
Newstalk

07.41 27 Jul 2015


Share this article


Ryanair has reported a 25 percent increase in first-quarter net profit.

The airline says its profit for the financial year ending next March would be at the top end of its guidance of €940m to €970m.

It is attributing the rise to better than anticipated revenue from ticket prices during the key summer period.

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Ryanair has now raised its full-year passenger target, saying it will likely transport 103 million passengers in the current financial year - up from 100 million previously forecast.

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Employers Group Ibec has warned that EU fiscal rules could hurt the Irish recovery, because of the restrictions which they place on public investment spending.

It says that the recovery in the Irish economy needs an extra €2.5bn to be invested in spending, and that €1bn of this money should come from the Government.

The group argues that Ireland needs to take action to counter changes made in the recent UK budget. It proposes that Ireland could make a case to the EU to sanction extra spending citing our growing population as grounds to allow more investment.

The organisation also says the coalition needs to end discrimination of the self-employed, and to introduce meaningful capital gains tax relief for entrepreneurs.

These policy recommendations are contained in the group's pre-Budget submission.

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Bank of Ireland has lent €2.5bn to small and medium-sized businesses in the first half of 2015 and almost nine out of every 10 credit applications were approved.

The value of these loans is almost 18 percent higher than in the same period in 2014.

The bank has received more than 34,000 credit applications - this is 17 percent higher than the amount received in the second half of 2014.

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The Banking Inquiry will take legal advice tomorrow and meet to discuss whether former Anglo Irish Bank Chief Executive David Drumm should be allowed to give evidence to the inquiry through a video link.

Weekend reports suggest that the issue of accepting evidence from the banker without making him appear before the committee has caused deep divides within the inquiry.

Mr Drumm is currently in the US, and is wanted by gardaí here for questioning.

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Pearson is trying to sell The Economist - last week the group sold The Financial Times newspaper to Japan's Nikkei firm for £844m (€1.19bn).

The publisher was a 50 percent stake in the political magazine - and the other half is owned by a fractured group which includes members of the Rothschild and Schroder banking dynasties.

The buyer of Pearson's shares would gain from the company's profits, but not have control of the publication.

A spokesperson from the publishers said, "Pearson confirms it is in discussions with The Economist Group Board and trustees regarding the potential sale of our 50 percent share in the Group."

Adding, "There is no certainty that this process will lead to a transaction."

 


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