An I.P.O. (an Initial Public Offering) is a stock market launch by a private company who has made the decision to sell shares to the public for the first time.
I.P.O. money paid by the investors goes directly to the company whilst later trading in the same shares sees the money passing between investors.
It is normal that a company would employ the services of an investment bank to help in deciding the share price and also to act as an underwriter for the issue.
Facebook, the social networking site is thinking about an I.P.O.
A valuation of between $75bn and $100bn is being put on the business with possibly up to $10bn worth of stock being sold.
Business
Denmark took over the Presidency of the E.U. Council of Ministers on Jan.1st 2012.
It is believed that the appointment of a permanent president of the council in Herman Van Rompuy has reduced the role of the country holding the rotating presidency. Mr. Van Rompuy,a former Begian Prime Minister is the first full time President of the Council.(Prior to the Lisbon treaty 2009 the Presidency was held by whichever country that was caretaker of the Council at that time).
Mr. Van Rompuy convenes and chairs the meetings of the National Government leaders, while U.K. politician Catherine Ashton chairs meetings involving Security and Foreign Affairs.(She acts as the High Representative of the Union for Foreign Affairs and Security Policy. ) She is also Vice president of the European Commission.
A meeting of the Council of Ministers is a meeting of the 27 Ministers who have responsibility for the area under discussion.
Denmark will pass the reins onto Cyprus on July 1 2012.
Business
Receipts at the O2 in Dublin for 2011 topped $50m,placing it the fifth best-attended music arena globally.
Despite the recession more than 670,000 went through its turnstiles. Its capacity is 14,500 and it staged 82 box-office gigs last year.
The most lucrative concerts were the two George Michael shows in November which grossed $1.38 m each.
Westlife sold out five nights, performers from the US TV series Glee sold out four nights, with X Factor live, Kylie and Rihanna all filling the venue.
Business
The number of Visa cards issued to Irish customers increased by 28% to 3.4 million in 2011. A total of €13 bn was either spent or withdrawn which was a 48% increase on 2010.
Although we are fond of the card Europeans prefer it even more, with €1 in every €8 spent by the Irish using Visa and €1 in every €7 spent across Europe. In the UK £1 in every £4 involves our flexible friend!
Business
For TY students involved in the annual stock market competition and on the lookout for possible bargains DCC has announced it expects the mild weather we are experiencing to have an adverse affect on its share price.
DCC’s home heating oil division is the largest of its five businesses. It benefited from the freezing weather which struck its European markets over the last two winters. Its share price is presently €18.31
Meanwhile Burberry ,the British luxury brand has reported a sharp slowdown in demand for its wares which again will reflect on its profits and share price.
C&C on the other hand is predicting a profit of €110 for 2011 as sales of Bulmers and Magners were up over 1% this Christmas over last year.
Business
The Financial Ombudsman has recently reported a 14% increase in complaints against Irish financial institutions. In the last year there was a 50% increase in mortgage related complaints while complaints against the medical insurers increased by 59%.
More complaints are being upheld. The Ombudsman described the institutions performance as being disappointing.
Business
Icelanders have again voted not to repay debts to Britain and the Netherlands as a result of the bank crash.
Iceland’s lawmakers had agreed a deal but the countries president insisted on a referendum.
Iceland has 230,000 voters-60% of those who voted rejected the plan saying that taxpayers should not have to bail out the banks who behaved irresponsibly.
It looks like its heading to the courts.
Business
Australia’s cigarette companies are angry at a move to have removed logos and distinctive branding from all cigarette packs on sale there. The government want instead to send a clear message that “the glamour is gone-cigarette packs will now only show the death and disease that can come from smoking.”
The new packaging to be used by all producers will carry images of the health damage caused by smoking.
The packaging, including its uniform olive green colour has been consumer tested and has been voted as the” least appealing” by smokers.
Brand names will be in standard font and size. Cigarette producers are considering their legal options and argue it will make it easier for counterfeiters.
Business
The placement of branded products on music videos,TV programmes and Hollywood movies in return for a fee has been in use in the U.S. for some time. It is estimated for example that Apple products appeared in 30% of the top films last year. The likes of Britney Spears and Lady Gaga have endorsed everything from Sony products to Miracle salad dressing.
The 2007 EU Audiovisual Media Services directive allowed broadcasters to take payment for displaying commercial products. With technology(skyplus remotes) allowing the person to zip through advertisements at high speed broadcasters revenue has been falling.
Product placement becomes legal in Ireland on May 2. Products can be placed in films,sport,drama and light entertainment shows. It will not be allowed on children programmes and chat shows that have more than 20% news or current affairs. Broadcaster will have to inform the watching audiance whether the shows has pp. (Below the show producer can insert on the blank screen the products involved)
Business
A member of the board of giant U.S. bank Goldman Sachs has recently been charged with insider trading.Insider trading involves a business person who has knowledge that may affect the share price before the market acquires that knowledge and he/she uses that knowledge to buy/sell shares. It is illegal. The Securities and Exchange Commission who monitors activity on the U.S stock exchange allege the director tipped off a business colleague within one minute of Warren Buffet investing $5bn in the bank in 2008.
The friend purchased 175,000 shares, sold them the next day and made a $900,000 profit.
The board member,also being a board member of Proctor & Gamble advised the same person that sales in P&G were going to fall short of market expectations. His colleague “shorted“ the stock, betting it would decline for a $570,000 profit.
Business
Eastern Asia’s richest man Li Ka-Shing is said to be running the rule over some Irish state-owned infra-structural assets. The assets include the country’s ports and energy companies such as ESB and Bord Gais. He already has a presence in Ireland as he effectively owns mobile phone operator 3 Ireland,which has 500,000 mobile and broadband subscribers. At 82 years of age Mr Shing is keeping busy by looking at acquisitions in Europe. He has already acquired two electricity providers in the UK,including EON the second biggest supplier there.
Business
An Italian businessman recently bought an old Apple 1 (the first ever product launched by Steve Jobs and Steve Wozniak ) when it went under the hammer at Christie’s in London. There are believed to be 30 to 50 Apple 1’s in existence,but the one auctioned was in excellent shape,with its original shipping box and documentation intact. The computer had a memory of 4kg and was originally sold in 1976 for $666.66.
The original documents included a note saying where to return to if not satisfied-Steve Jobs parents address!
Business
Pre-tax profits at Allergan’s main Irish subsidiary increased in 2009 to $315m from $87m in 2008. The company has issued a profits warning for the current year due due to the $600m settlement it made in the U.S. 
over an investigation into its marketing and sales practices in relation to Botox.
Allergan presently employs 780 people in Westport.
Business
Australian business Harvey Norman must have regrets about coming to Ireland. Here since 2004 they have 16 stores in all,14 in the Republic and 2 in the North. Sales have not measured up to expectations and they are locked into long-term(20 year) leases at high rent. Its annual rental expense here is close to €15m. Shareholders attending its A.G.M. were informed it could cost up to $400 m(Australian) to exit Ireland.
Business
Peat briquettes,firelogs,peat fertilizers are the products synonymous with the commercial state company Bord na Mona. The company has interests in wind energy,gas power,and horticulture as well as turf development. The company is to build a €50 m waste facility using green technology to turn rubbish into compost and solid fuel. It has invited tenders from firms across Europe to put the facility in place. (EU public procurement)
Business
The X factor final is becoming the Superbowl of Britain with business prepared to pay enormous sums to 
acquire a slot during the breaks. The final,which is scheduled for the weekend of December 11th and 12th will attract record viewership and will be highly attractive to advertisers. The programme is reckoned to be the family show. Last year,the first advertisement of the first commercial break sold for just over £200,000 (a 30 second slot). The final programmes will be ITV’s most profitable four hours of the year.
Business
We chartered the history of Apple up to January 2010 (see”The story of Apple Inc. above)-so how have things developed since?
Well it has been voted the worlds most admired company by Fortune Magazine in 2008/2009 and 2010.The share price ($308.43 today)has rocketed as have company profits.In the last three months Apple posted sales of €14bn, sold 14 million iPhones, 4million i-Pads,and almost 4million Mac computers. Profits of $4.3bn which works out at $4.64 per share,were recorded.
On November 3rd 2010 according to Standard&Poor’s list of leading global companies, Apple’s total market capitalisation trailed only oil giant Exxon, having bypassed Microsoft for the first time.
Apple operate at a gross margin of 38%.
They have reserves of $51bn.
Theres a “wee” bit of speculation that the purchase of Facebook could happen.
Accounting, Business
P Diddy,whose real name is Sean Combs is no slouch when it comes to business. His clothing label, “Sean John,”has annual sales of €408m,while his fragrence “Unforgivable,” is the biggest selling men’s scent in the U.S. Sales of his vodka brand ” Ciroc,”a joint venture with Diageo is second in its market.
Combs now has his eyes on the U.K. market with Selfridges,House of Fraser and Harvey Nichols anxious to 
stock his brands.
“Bad Boy Records” is his music recording and publishing company,while he has has a restaurant chain called “Justins.”
Pretty busy I’d say!
As a youngster he delivered newspapers, and at college he organised a shuttle sevice ferrying students from the airport to campus.
Business
A recent BBC world service documentary traces the development of Toyota from a small Japanese company to a global company-the biggest car maker in the world.
The company has in recent times had a number of recalls both in the Lexus and Toyota brands. Accusations of putting the “bottom line” ahead of all other considerations including safety have been levelled at the company. Toyota insist that they have at all times behaved ethically,and attempted to sort out problems as soon as they have been notified. Akio Toyoda, the company president has apologised through the U.S. congress and to the 95,000 Toyota employees in Japan.
The case study analyses the growth of the company. It includes business topics including-ethics/global business/outsourcing/just in time production/whistleblower/ and is well worth a listen.
Business
“Discrimination is the treatment of a worker in a less favourable way than another worker is being,has been,or would be treated.”
In Ireland cases are referred to and investigated by the Equality Tribunal.
In its report for 2009 there were 117 referrals on the grounds of disability(up 21% 0n 2008)
95 referrals on grounds of gender(up 20% on 2008)
289 on grounds of race( 33% of all cases in 2008/2009 involve race issues)
Financial cutbacks, including a driving ban on staff, currently prevents the Tribunal from attending hearings in towns that do not have a train station!
Business
TY students are commencing a fantasy share investment competition with TY B in session now and TY A having their competition in a few weeks. The students are using www.bullbearings.co.uk/They will use live share prices from the London stock exchange. The students can at all times see their position on the league table The winner of each competition will receive a cash prize.
Business
Iceland held its referendum on its €3.9bn repayment package to UK and Dutch savers on Saturday last.Icelandic banks collapsed in both countries leaving savers at a loss. Icelanders are seething at the actions of the authorities in those countries. A final turnout of 62.7% cast their vote with 93% rejecting the proposed repayment package.
It looks like the Icelanders do not want to renege on the package but they want the terms of the repayment to be re-negotiated.
A €4.6bn IMF package for the Icelandic economy is on hold until there is certainty about how the foreign savers are to be compensated.
Business, Economics
A consortium of investors calling themselves the “Red Knights” is attempting to buy Manchester United. Bought six years ago by American owners,the Glazer family have not won the hearts of the fans. Now a consortium of wealthy United supporters are attemting to buy the club. The Glazers have a reputation of being hardened businesspeople and will only sell if it makes economic sense to them.
The “Red Knights” value the club at £1.25 bn, including its £500m debt. This means the Glazers would receive £750m, having put in £272m in 2005.
“The Red Knights” hope to raise £250m from supporters, £500m from a group of wealthy investors and retain the £500m bond debt raised in January.
UEFA favours clubs being owned and run by their supporters. Barcelona, Real Madrid and several German clubs being held up as examples.
The finances of the Premiership clubs are very poor, with 18 of the 20 clubs having a combined debt that is more than the rest of Europe’s top divisions put together.
What chance the “Red Devils” being owned by the “Red Knights”?
Business
Ethical business practice requires a business to act with fairness and justice to all its stakeholders and with social and environmental responsibility to the wider society. The stakeholders are those who make or are affected by the decisions of the business-its customers,suppliers,employees,shareholders etc.
In a recent ranking compiled by Swiss Ethical analyst firm Covalence, IBM came out on top followed by Intel.
Others in the top 20 include Nike,Microsoft,Starbucks and Vodaphone.
Guinness manufacturer Diageo came 39th.
Oil and gas companies tend to prop up the list. Ryanair came in the bottom 10,with a ranking of 575, with CRH at 557.
Business
The ESB’s new power station in Southampton,which opened yesterday, is the largest electricity generator built in the UK in the last five years and will supply one million people.
By 2020 the UK and Irish electricity markets will be one. Two more interconnectors need to be built. Britain is facing into having to replace many of its nuclear plants so the ESB have an eye on possible future opportunities.
It does not intend selling directly(retail) to the public,rather on to other electricity suppliers on a contract basis.
Business, Uncategorized
Apple seeking to change the publishing business in the same way the IPod transformed the music industry today unveiled a tablet computer-the IPad.
The product is expected to challenge strongly the market leaders in the e-reader sector and intends opening up an e-reader store. Deals have been forged with many of the worlds main publishers to offer electronic books on the IPad.
The device will run the more than 140,000 apps already available on the IPhone and ITouch.
More than 60million Apple shares changed hands today,with the share price increasing by almost $2. The expected selling price is lower than what was expected and as a result massive sales are predicted.
Apple relies on sales of computers for 25% of sales,the IPhone for 33% and the IPod for 22%.
It has sold 250million IPods.(though IPod sales are now in decline.)
Want to know more about Apple?
Business
State company,Enterprise Ireland has recently provided support to local firm Carraig Donn from its growth fund, to aid the firm’s expansion plans.
The firm was established in 1981 and is Irelands largest indigenious knitwear manufacturer. It sells in the domestic and in a number of foreign markets.
In September 2009 a 24-hour sustained TV sales drive on US shopping channel QVC resulted in $1.4m in sales.
Business
We have followed the proposed takeover of Cadbury’s with alot of interest. The deal looks like coming 
to an end as Kraft’s latest offer of £11.9 bn has been agreed with the Cadbury board. Cadbury’s chairman says “the offer represents good value for Cadbury shareholders.” The offer is £8.40 per share.
Cadbury’s employ 45,000 people worlwide including 5,600 in the UK and Ireland.
Still, many Cadbury shareholders may vote to reject the offer. Some view this as a hostile takeover by a company who may asset strip Cadbury’s in order to finance the deal. Unions fear redundancies. It’s still not too late for a counter bid, with Hersey said to be monitoring the situation.
“There’s many a slip between cup and lip!”
Kraft biggest shareholder is Warren Buffet.
Business
Entrepreneur extraordinaire Sir Richard Branson has recently purchased Church House Trust,which has 3000 customers but no branches for £12.3m. The acquired banking licence will allow for the creation of Virgin Bank and paves the way for it to offer mortgages and current accounts in the UK later in the year.
Business
The President of Iceland has moved against Icelandic parliament in refusing a deal that would see the 
repayment of €3.9bn to UK and Dutch savers in a failed Icelandic bank. This is creating diplomatic tension between the countries involved. President Olafur Ragnar Grimmson was reacting to a petition signed by thousands of Icelanders to refuse payment. The presidents move was a blow to Prime Minister Joanna Sigurdardottir’s government who backed the deal.
The matter will be decided by referendum on February 20th.
Business, Economics
Gillette having employed three “sqeeky clean” sporting icons have rushed to adapt their advertising in the light of recent circumstances. Compare below the advertisements below. The advertisement on the right is employed in the French market,the one on the left in the remainder of their markets.
What other changes may be needed?
Business
The Advertising Standards Authority in the UK have rejected 13 complaints that the new L’Oreal advertisement featuring Cheryl Cole is misleading. M/s Cole says in the add that “My hair is stronger,full of life,replenished with a healthy shine. Its got its mojo back.” What she doesn’t tell us is that she uses hair extensions,which cost up to £1000 a time ,to give her hair more bounce.
During the TV advertisement, a message flashes up,saying her hair is “styled with some natural extensions”,but it remains on screen for fewer than 2 seconds of the 30 second add.
In magazine advertisements, the hair extensions are mentioned in print 2mm high.
The advertising standards authority stated that no rules have been broken because of the inclusion of the 2 second message.
Business
Cadbury plc has rejected Kraft’s unsolicited (Hostile) takeover bid in the absence of an improved offer. The bid was first made public on September 7th.
The question now is, is that the end of the matter? How likely is it that Kraft(with Warren Buffet as its largest shareholder) will make another attempt in the months ahead? Is there a possibility of a “WhiteKnight“ company entering the fray? Could that company be Nestle plc?
A deal would have pushed Kraft past Mars plc as the worlds largest confectioner.
It will be interesting to see at what price the Cadbury share will trade at in the near future.
Business
Kraft Foods Inc. (NYSE: KFT),the largest food and beverage company headquartered in the U.S. and the second in the world after Nestle has made what is generally considered an unwelcome or “hostile”bid for UK confectioner Cadbury’s. The offer values the company at £9.8bn which is £7.20 per share. Cadbury’s board believes this undervalues their business and expects its largest shareholders to reject any offer short of £8.50. Today the share price is £7.58.
Business
Belmullet is to become the focus of attention for a new joint-venture/strategic alliance between Irish company “Wavebob” and a leading European electricity producer “Vattenfall“. The purpose of the joint-venture is to promote the further 
research and development of ocean wave energy. The two companies have established a separate company “Tonn Energy” for the purpose of the joint-venture. The venture looks a good fit as it combines Wavebobs innovative wave energy conversion technology with Vattenfalls backing and expertise.
Business
In the UK former manager of Newcastle United Kevin Keegan recently was awarded £2m compensation after an independent arbitration panel found that he was constructively dismissed in September 2008.
The panel declared that managers had the right to have the final say on the signing of players. In this case handing that role to the clubs director of football Denis Wise amounted to constructive dismissal.
The former manager was coerced into signing a South American player he had never seen play by Wise, as a favour to an agent. Keegan stated that he “has found it and will continue to find it difficult,if not impossible to obtain work as a top-flight manager.”
Business
The Society of the Irish Motor Industry,the Trade Association representing the motor industry in Ireland is actively lobbying the government to introduce a scrappage scheme for cars that are 10 years or older. Such a scheme would see the owner of such a car be entitled to receive well in excess of its market value when traded against a new car. The SIMI are seeking to convince the government that €100m in extra taxes could be raised as a result.
Business
U2’s two year world tour to support”No Line on the Horizon” which began in Barcelona at the end of June has yet to reach break-even. Despite ticket sales of €205m to date, they incur expenses of €500,000 a day,whether they are playing or not! With a staff of 500 on the payroll and 120 trucks transporting the three identical stages(the Claw) that were constructed for the tour,the expense involved is enormous.(the stages cost €40m to construct).
Dublin has been the most lucrative date so far. Their 3 sellout shows in July drew 243,198 and earned €20.2m. Last Wednesday, U2 broke the attendance record at the Giant stadium in New Jersey drawing 84,472 fans to the concert and beating local favourite Springsteen.
Business
ESB worker share-holders are unhappy that €300m of 2007 profits was used in 2008 as a subsidy to ease domestic electricity price increases. At their recent AGM the company’s ESOP (employee share option scheme) were critical of this move. The employees own 14% of the company.
Meanwhile ESB’s competitors have claimed 300,000 new customer accounts-presumably,customers lost by the ESB.
Business
Major investor, Denis O Brien is seeking the removal of the Chairman and other directors of INM and has requisitioned an EGM on November 3rd to that end.
Independent News and Media is a plc quoted on the Irish Stock exchange. Today, the share price is €0.28.The company is a multinational company. It has interests in print,advertising and media throughout the world. It is a leading publisher in Ireland,UK,Australia,South Africa and New Zealand. It is the largest radio and outdoor advertiser in Australasia. In Ireland its publications include The Independent,Evening Herald,The Sunday World, The Sunday Independent as well as 16 regional newspapers. It is also a major shareholder in The Sunday Tribune.
Business
Intel is the latest company to incur the wrath of the EU Competition Commission. A fine of €1.06bn has been imposed by Commissioner Neelie Kroes on the US chipmaker for abusing its dominant position between 2002and 2007.
During that time Intel held a 70% share of the market for central processor units (cpu’s), the chips that computers need in order to function. The Commission found that Intel actively discouraged computer manufacturers,including Acer,Dell,and HP from using CPU’s produced by its main rivals AMD in their products. They did this by paying the manufacturers to restrict sales of AMD chipped products. The fine is the biggest ever imposed and has left Intel feeling hard done by.
This is the second time that Ms Kroes has left an IT giant reeling. In 2004 the Commission fined Microsoft a then record €497m for resticting the data needed to allow rival operating systems 
interface with its Windows system. As well as the fine,Microsoft were ordered to disclose the required information within 120 days. When it dragged its heels on providing this information it was again fined in 2006 (€280m) and in 2008(€899m).
Business
The TY classes have just completed the annual stock exchange fantasy league competition. Using the “Bull Bearings” web site much fun and serious competition was had by all. Students were given one week to familarise themselves with the skill of buying/selling on both the Dublin and London stock exchanges, before the serious competition commenced.
Each player was given a notional €100,000 to invest. Ian McAleer was the victor in TY C with an excellent profit of €42,032 made over the 5 weeks.
Chris Campbell was victorious in TY B with an outstanding return of €69,915- a fantastic profit.
TY A saw a titanic struggle take place, in particular between Pat Varley and Diarmuid Joyce. The lead swopped hands on a number of occasions. At 2.45pm today both had to fully sell their share portfolio in order to establish the winner. Diarmuid made an exceptional profit of €97,264 but still found himself narrowly eclipsed by the determined Varley who managed €97,844.
Alot of stockbroker and pension fund operators would be envious of those returns!
Well done to all.
Business
Royal Dutch Shell plc posted 62% fall in its net profit for the first quarter as falling prices and weak demand has affected operations.
Net profit for the three months ended March ‘09 was $3.5 bn down from $9 bn for the previous quarter.
Accounting, Business
Unofficial action by members of SIPTU and the National Bus and Rail Union left commuters in Dublin stranded this morning. Such a “lightning” or “wildcat” strike poses problems for the State owned employer who is unable to provide a service, the unions who have not sanctioned the measures taken by workers,as well as inconvieniencing the consumer.
Business
The Irish Independent recently published what they believe to be the top twenty computers on the market.
Uncategorized
China has recorded a Balance of Trade surplus year-on -year in March of $18.5 bn.
Exports fell year-on year by 17% but imports fell by a whopping 25%.
Exports of labour intensive industries including clothing,bags,shoes and furniture showed big increases while the export of fertilizers, steel and grain fell.
The average monthly industrial wage in China is approximately 1000 yuan ie €100 for 160 hours of labour. This is equivalent to €0.66 per hour.
As labour costs are four times higher in Hong Kong than in mainland China its not just European and U.S.business that is relocating there.
Business
Aer Lingus plc, previously a wholly State owned Irish national airline is now in the hands of
Ryanair 29.8%
The Irish Government 25.1%
Employee Share Ownership Trust (ESOT) 14.2%
Institutions and small shareholders 30.9%
Business
Ireland recorded a Balance of Trade surplus for 2008 of €29bn. This is a 14% increase on the previous year.
Exports fell by 3% while imports fell 10% (led by a collapse in the sales of cars and computers).
Business, Economics
The Apple App. Store launched in July 2009 sells thousands of applications developed by independent software developers. Games, entertainment and news that customers can easily download to the iPhone,often for free or for as little as$0.99.
When Apple opened the App. Store it provided the building blocks for independent programmers to create software that worked on the phone. Apple state that they vet submissions to maintain quality control. Apple collects a 30% commission from those programmers.
Now it seems a bunch of renegade producers have come to the surface producing software that Apple will not recognise. Apple believes that those producers violate copyright laws. One such programme allows the use of the iphone as a camcorder.
Business
Research is acquiring new knowledge, development is applying that new knowledge to produce a good or service. R&D is an important source of new product ideas.
Trinity College Dublin has a fine tradition of creating new pharmaceuticals that later are to found on the retailers shelf. In a recent event it showcased to industry and others its latest possibilities.
One example sure to catch the eye is a replacement drug for aspirin. While aspirin can be used to prevent heart attacks and strokes, prolonged usage has been linked to gastric bleeding and ulcers. TCD researchers say they have dealt with this side-effect in the creation of “Safeprin.”
The patent for such a product may be purchased by an existing pharmaceutical firm or TCD might create a spin-off company perhaps with funding from venture capitalists.
Business
Insurance magnate, Sean Quinn has been knocked back from first to third place in the list of Ireland’s richest people to be replaced by Denis O’Brien, according to latest Rich List from Forbes Magazine.
Forbes estimates that the Quinn family fortune plummeted by some USD4.5 billion in the past 12 months with Mr Quinn losing at least E1.5 billion from his Anglo Irish investments.
Media mogul Anthony O’Reilly has dropped out of the billionaires’ list this year.
Overall, the world’s billionaires are estimated to have lost about one-quarter of their combined wealth last year.
Bill Gates regained his position as the richest person in the world, overtaking investor Warren Buffett, whose personal fortune fell by USD25 billion.
Business, Economics
An increase of 7% in annual global sales(to end of January 09) begs the question “are McDonalds recession proof?”
The company intends opening 4 new outlets in Ireland this year, whilst during the boom years it averaged out at 2 a year.
Many of the existing Irish outlets are to get a “McMakeover” in 2009, with some designs being shipped in from the McDonalds design centre in Paris. The new McDonalds in Navan is to have a design seen in only one other mcDonalds:on the Champs Elysees.
Half of the finance for the re-fits will come from the franchisee. Some 60 of the 75 Irish outlets are franchise-owned.
McDonalds would ideally prefer to increase its “drive-through” sales in Ireland from 50% to the U.S. level of 70%.
Business
Cadbury have recently announced their intention to acquire the Fairtrade certificate. Its top selling Dairy Milk bar and its Hot Chocolate beverage are to use cocoa sourced under Fairtrade terms from cocoa farmers in Ghana. This will give a boost to the ethical trading certification scheme. It may encourage other leading producers to follow suit.
Cadburys have stated that such a move will not impact on price.
Business
Greencore plc,formerly the Irish Sugar Corporation(a State company) is looking to the U.S. to boost its sales of convenience foods. The company has diversified greatly from its original business of producing sugar.
The company was privitised in 1991.
Greencore produces food for retailers,including Asda and Tesco,manufacturers,petrol forecourts and airlines making everything from sandwiches and chilled meals to cooking sauces. Their market research indicates that the average American who was eating out 1.5 times a week is now doing so 1.2 times.
Last year the company bought out “Home Made Brand Foods” in the U.S. as a means of growing their business there. With Americans cutting back but still having a desire for pre-prepared food Greencore see an opportunity to increase revenue.
Business
When deciding whether or not to grant a loan a bank tries to establish the creditworthiness of the borrower. To assist them they carry out a credit check.
How is it done?
More than likely they contact the Irish Credit Bureau. Formed in 1965 it enables fast decisions in providing credit and assists with fraud prevention.
Who owns it?
It is owned and financed by its members-80 different financial institutions.
What kind of information does it have?
The Bureau has information on your mortgage repayments,car loans,personal loans,leasing agreements,hire purchase agreements and credit card details.
Anytime you apply for a loan from one of the lenders the institution will access your credit report.
Information is held for 5 years after a loan/credit agreement is closed.
Can I access my report?
Yes. The Bureau complies with the Data Protection Act1988/2003. Private individuals (the Data subject) may inspect their own Irish Credit Bureau report.
Business
The Office of the Director of Corporate Enforcement has recently been in the news due to the fact that while working with the fraud squad they are searching and removing files from the hq of Anglo Irish Bank. This is the first time that the O.D.C.E. sought permission from the courts to search the premises of a financial institution under investigation for possible breaches of company law.
The aims of the O.D.C.E. is to improve the compliance environment for corporate activity in the Irish economy. It has the power to investigate breaches of Company law,and to bring to account those who are in breach of the law.(to ensure that Companies and those who run them act within Company Law)
Some of the issues investigated during 2008 include
- the purchase and sale of shares in one plc(DCC) by another plc(Fyffes)
- the publication of a 200 page Company Law handbook on property
management companies to help improve their governance
- ultra vires investigations of company directors.
The team working in the O.D.C.E. is made up mainly of accountants,lawyers and gardai.
Accounting, Business
As the gobal recession bites hard,their is growing suspicion that many governments are edging towards protectionism. The Czech government in its EU presidency is determined to uphold unity and ensure that member states obey the rules of the single market. The G7 states also have pledged to work together in tackling the global crises.
Meanwhile,France’s plan to inject €6.5bn into its car industry (Renault/Peugot/Citroen) has angered the German,Swedish and the Czech Republic governments. Hot on its heels is aid for the Spanish and Italian car makers from their authorities.
President Obama meanwhile has a “Buy American“provision in the stimulus package leaving little doubt as to where his sentiments lie. The U.S has been criticized by Europe,Japan and Australia. The Chinese have also been critical without naming the U.S.
When announcing its 4 trillion yuan stimulus ($586bn) it avoided a “buy local” message.
Business, Economics
Despite the economic situation it appears companies are still anxious to be associated with the top stars from the game of golf, and are prepared to pay well for that association. Tiger Woods earned $7.7m in on course winnings in 2008 but this was dwarfed by the $110m earned off it. Endorsements,appearance fees, speaking engagements,computer games,clothing contracts are just some of the means by which this money is earned. Buick,Nike,Gatorade,Titleist and Gillette are just some of the corporations who see value in Tiger. This means that since 1996 Tiger has won $108m on course and a staggering $886m off it. It clearly makes business sense for these global companies to be associated with a global icon. If he has normal (for him) success when he returns from injury h
e will become golfs first $1bn man in 2009.
What about Padraig Harrington?
Irelands superstar in 2008 won $5.6m on course and $12m off it.
That seems very good value for Padraig’s sponsors in comparaison to say Michelle Wie who won $76,000 on the course and a cool $7m off it!
Nice work if you can get it!
Business
Setanta Sports faces an uncertain future. The Irish company formed in the early 1990’s,initially to broadcast Gaelic football and hurling abroad,has seen its share of coverage of the Premiership reduced.
Setanta is broadcast freely on the Chorus NTL platform and as a subscription channel on Sky digital. It presently provides a service in 24 countries.
The Premier League last week displayed its commercial attraction by securing a 5% increase for its various packages(£1.8bn),with Sky being the big winner. The price is a result of a bidding process. This covers 2010 to 2013. Determined not alone to hold on to what it already has, Sky has re-captured the Monday night football leaving Andy Gray with 115 matches to chose from, and Setanta with just 23 Saturday evening matches.(5.30pm slot)
This is a massive blow to Setanta who will struggle to convince subscribers that its worth paying extra each month for the occasional Saturday evening match.
Sky has 600,000 subscribers in Ireland. If the cheapest subscription was paid by all this is revenue of 
€150m a year,twice that if the most expensive package was taken by all.
For Setanta,they will seek to secure the rights of various sports in different countries.
There is always the possibility of an alliance,merger or possible take-over(The Disney owned ESPN perhaps.). If they wish to compete with Sky in the future they will need to be able to match Sky’s financial strength
Business
Warren Buffet,the muti-billionaire has purchased $300m of debt from iconic motorcycle 
manufacturer Harley-Davison Inc.-in return for a 15% annual interest payment. In so doing Buffet is again following his oft proven path to success by investing in firms with a powerful competitive advantage.(Brand names). Last April his company put up $6.5bn to help Mars buy chewing gum maker Wrigley.
Warren Buffet is said to be the worlds richest person. He is reputed to be worth $62bn.Through his investment company,Berkshire Hathaway Inc., he has shown his investment prowess year after year for the last 30 years. Even now at the age of 78 he is still a man of massive influence in global business matters. He is said to be modest, draws down a modest salary ($100,000 in 2006) ,has lived in the same house for 40 years,and is a philantropist.
Buffet has invested massive sums into Coca Cola,American Express,Wal Mart,Anheuser-Busch,Nike, General Electric and Wells Fargo.
As a thirteen year old he completed his first tax return. Working as a newspaper delivery boy he felt he ought to declare his income to revenue.
He did however deduct the cost of his bicycle and watch as a business expense!
Business
Renewable energy firm Airtricity has re- entered the Irish market after a three year break. Now owned by Scottish and Southern Energy (SSE) it intends to offer stiff competition for the State provider of elecricity(monopoly), the E.S.B. Its target is 15% of the market, that’s 500,000 customers.
Any ideas on what they need to do in order to achieve this?
Business
The Society of the Irish Motor Industry , the Trade Association representing garages nationwide have reported that January new car sales clocked in at 15,929. This is a 67% decline from January 2008 figures(47,609). This is the most up to date snapshot of the state of the Irish Economy. It indicates the unwillingness of people to update their motors. It has an immediate negative impact on exchequer returns,and will cause unemployment in the garages. The weakness of sterling as against the Euro has seen many people travel north or across the Irish sea to pick up a bargain.
Will the Government introduce a testing system (a la NCT) for all foreign imported cars?
What chance of a re-introduction of a Government backed “scrappage” on old cars?
Business, Economics
Toyota have announced a worldwide recall of almost 1.3m Yaris cars. A problem with the centre pillar housing the front seat belts has been identified. The affected cars were assembled between June ‘05 and April ‘07.
As only two complaints had been made globally, this is a case of “better to be safe than sorry”.-an example of a company behaving ethically,displaying social responsibility.
The necessary repairs take under an hour. There are 9,800 cars affected in Ireland.
Toyota’s prestige marque(brand) Lexus recently recalled some of its models where its fuel delivery pipes were affected by corrosion.
Business
As the House of Representatives vote on January 28th on President Obamas intention of an $825bn stimulus to the U.S. economy, economists are unsure as to its likely success in creating jobs and increasing G.D.P. Much depends on the multiplier effect.
Business, Economics
The redeveloped Lansdowne Road is to be re-named the Aviva Stadium after the insurance company won the race to land the naming rights. Aviva, formerly known as Hibernian is expected to pay €4m a year in a 10 year deal.
Insurance products are presently being marketed under Hibernian Aviva but the company plans to drop the Hibernian name completely.
The stadium is scheduled to reopen by April 2010 with a 50,000 seated capacity after a €365m rebuild.
The stadium is favourite to land the UEFA cup final of 2011.
Business
The government which is a 25% shareholder in Aer Lingus has rejected Ryanairs €1.40 offer per share.
The government felt the offer undervalued the company, and that the formation of a monopoly would not be in the public interest.
Ryanair owns almost 30% of Aer Lingus.
Aer Lingus’s share price fell from €1.42 to €1.25 after the government announcement.
Aer Lingus, instead has decided on a partnership deal with United Airlines.
What does the future hold for the airlines?
Business
Spanish multinational group Applus RTD has emerged as the winner of the new 10 year car testing contract worth more than €400m.
Under open public procurement, E.U. governments allow bidders for all such contracts from all member states. They may not show favour to firms from their own country.
Applus RTD operates presently in 70 centres in Spain, where they also certify second hand cars.
Three companies tendered for the contract, with the company presently with the contract, NCTS, ranked second. The test is mandatory for cars over 4 years old,which must be re-tested every 2 years.
Business
The scene at the E.G.M. of the Anglo Irish Bank
An Extra-ordinary General Meeting (egm) of the shareholders of Anglo Irish Bank took place on Friday last. The meeting had been arranged prior to the Government decision to nationalize the bank.
Shareholders who spoke at the meeting outlined their disapproval of how the company had been governed and the failure of the company auditors to spot wrongdoings.
With in excess of 749m shares issued,shareholders will wonder what,if anything they will get for their investment.
The bank has 20,000 shareholders.
Uncategorized
The Irish Government yesterday took the unprecedented step of nationalising Anglo Irish Bank. The bank whose share had soared to €17.50 in the summer of 2007 was embroiled in governance and bad debt issues. The share price had fallen to €.20 prior to the Government decision.
Business
The Irish government,through the National Treasury Management Agency (NTMA) this week closed the successful sale of a 5 year Government bond,securing €6bn at a rate of 4.07%. The sale was oversubscribed, with orders in excess of €7bn. The buyers comprised of asset fund managers and central bankers. It is expected that the Government may have to borrow at least €20bn on the bond market this year. The rate to be paid is higher than most countries (Germany 2.35%, Italy 3.57%) but lower than Greece (4.76%) for their latest 5 year bonds.
The agency were attempting a sale €3bn, but with 140 investors willing to buy,decided to double their target.
Irelands debt to GDP ratio now stands at 41%
Business, Economics
Allegan,Baxter,Coca-Cola and Hollister have over a number of years lobbied the Irish government on the need to upgrade the N5. Access in to and out of the region is key for their continued success.
The companies jointly, directly employ 3,000 people and a further 6,000 indirectly. They export 90% of their €3bn output, and pay €350m in taxes here.
60% of Coke concentrate for the world, 100% of the world supply of Botox, and 70% of renal dialysis solution is transported via the N5.
A total of 100 containers from the factories use the route on a daily basis.
Its estimated that €230m, the equivalent of 8 months tax revenue from those companies would be needed for the upgrade. 
Should the state finance such a project?
Business
Plummeting car and aircraft sales have hit the beef industry,by cutting global demand for leather.
Prices of cattle hides and sheepskins have slumped to half their previous values.
As beef processors operate off tight margins,a cut in prices paid to farmers for their cattle cannot be ruled out.
Business
With the € presently at £.95 sterling and the Bank of England stating that zero interest rates in the UK are a possibility,keeping sterling weak, Irish exporters to the UK are in trouble. We export 18% of our goods to our nearest neighbour(€16bn in 2007) while British tourists account for 50% of visitors here.
Its not surprising that Irish shoppers have been taking advantage of the value to be had across the Irish sea and up north. Not alone has the shopper benefitted from the changes in the exchange rates,recent changes in the VAT rates has seen a 6.5% difference emerging between the two jurisdictions. (21.5% in the Republic /15% in the UK).
Do you think we will have parity? (€1=£1)?
Business, Economics
In anticipation that the public will feel guilty following the eating frenzy of Christmas,Kelloggs intend spending €2m advertising Special K,its low fat cereal,in January and February. Fifty years after it was introduced in the U.S.
, the cereal, made mainly from rice and wheat is a popular product for who want to lose weight. The 30- second ads will air on RTE, TV3, TV4, and Sky. Ads will also appear on bus sides, billboards and shopping trolley handles. Kelloggs, via Special K will also sponsor the U.S. and U.K. version of the reality TV series “Next Top Model” from January 19th. The show is seen by Kelloggs to fit well with the Special K ethos of glamour, fitness and feeling good.
Business
Should you have to pay tax on things you sell on eBay?
The Revenue Commissioners think you should,but before you get alarmed they are targeting the “Power Sellers.”
Revenue estimate there are at least 10,000 such sellers in Ireland, and as is the case in Canada,they may force eBay to hand over personal information on them. In Canada they focused on those sellers who earned in excess of $1,000 a month for three consecutive months.
eBay has remained silent thus far,concerning Irish sellers. It charges a commission on every sale. Ireland has proven luctative.
One international “Power Seller” recently surpassed a million positive feedbacks. Should those people pay tax?
Business
Pictured here is the ICTU voting recently to accept the latest Social Partnership Agreement, “Towards 2016″.
Congress, comprising of 55 unions, voted 305 in favour of the agreement and 36 against.
Congress represents 620,000 workers in the Republic of Ireland.
How likely is it that the pay elements of this deal with be implemented?
Business, Economics
The Organisation of the Petroleum Exporting Countries(Opec) intend cutting oil production immediately in an attempt to halt the slide in prices. It is expected that Russia, the worlds second largest supplier,will work with the cartel
to boost prices.
Opec,which controls 40% of the worlds oil supply have agreed between themselves to cut production by 2m barrels a day,but its believed that some member states have not followed through on this decision. The finger of blame is being pointed at Ecuador,Venezuela,Libya and Iran.
In recent times the price has fallen from $140 a barrel to $46 a barrel at the moment.
With the global downturn it is speculated that next year it could slide toward $30 a barrel.
Business, Economics
In an attempt to push turnover over the €100m mark Largo Foods has identified the Libyan market as a new market for the Tayto crisp. Largo, who also produce and sell King, Hunky Dory’s,Sam Spudz,Perri, Chipsticks and Snacs, are involved in a joint-venture with a Libyan company who will produce and sell the Tayto crisp there. The product needs to be adapted to cater for the tastes of the Libyan market.(The crisps will be spicier). Largo has seen its share of the Irish market threatened by Walkers and Pringles in particular.
Largo acquired the Tayto brand in 2006 for €62m, from C&C. C&C wished to offload in order to devote its time and resources expanding its sales of Bulmers/Magners.
Business
One of the most interesting Business stories in Ireland is Ryanairs latest attempt to takeover Aer Lingus its main competitor here.
Ryanair presently owns 29.8% of Aer Lingus and last week tabled a €748m offer to buy the airline. This represents €1.40 per share,exactly half of their previous offer.
The Government and the Aer Lingus workers own 40% of the share
s(esot) in Aer Lingus.
Its fair to say that Aer Lingus are not enamoured with the bid as tabled, as they point to €1.3bn cash on the groups balance sheet.
Ryanair, on the other hand have “sweetened” the offer by stating they would create up to 1000 new jobs,would recognise the unions at the “new” Aer Lingus, and would give the state a guarantee on the Aer Lingus Heathrow slots.
Business
Inflation fell to its lowest level in three years in November. The annual rate dropped to 2.5%. Economists predict that next year could see deflation kicking in for the first time in 60 years.
Business, Economics
An I.P.O. (an Initial Public Offering) is a stock market launch by a private company who has made the decision to sell shares to the public for the first time.
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