Ireland

Northern Ireland row threatens its Brexit dividend

21 May 2021

British leaders have cast doubt on border arrangements they agreed following the country’s split from the European Union. It’s a blow for the province’s plan to lure foreign firms by offering access to both Europe and Britain. Its post-Brexit boom may be over before it started.

Corporate tax reform may help Ireland in the end

4 May 2021

The Emerald Isle’s allure as a low-levy destination will fade if a global minimum tax rate is agreed. Dublin wants to maintain its appeal by spending over 4% of GDP to fix problems like poor public transport. Such investment will lay the foundations for a more balanced economy.

Ireland bank exodus presages wider EU retrenchment

16 April 2021

Belgium’s KBC may flog most of its $12.3 bln of local assets to Bank of Ireland. NatWest just pulled the plug on Ulster Bank. Tough regulation, large incumbents and low rates played their part. The same factors will push other European lenders to retreat from far-flung markets.

Stripe’s $95 bln pop raises bar for payments hype

15 March 2021

The privately held group run by the Collison brothers raised money at almost triple its last valuation. It seems rich even next to listed peer Adyen. Investors in the companies are betting on a decade of breakneck growth. Rising competition means they can’t all be winners.

Kerry Group’s short-seller defence lacks flavour

16 February 2021

A sleuth of bears has accused the Irish maker of Wall’s sausages of overstating the value of acquisitions. The 19 bln euro firm dismissed the criticism and powered ahead with its shopping. But to close the valuation gap with rival Givaudan, a more transparent rebuttal is needed.

Elliott’s Swiss cookie raid merits activist slap

24 November 2020

Paul Singer’s fund made a 733 mln euro bid for debt-laden baker Aryzta. It comes as the Otis Spunkmeyer maker’s soggy valuation may gain from a plan backed by other investors to break it up. The easing pandemic gives shareholders reason to hold out for more.

The Exchange: Telecoms mogul David McCourt

25 August 2020

The pandemic has made connecting rural areas a global priority. The Irish-American cable entrepreneur explains to Aimee Donnellan why he returned to Dublin to roll out a 3 billion euro broadband programme, and how the Covid-19 crisis created an opportunity to transform business.

Ireland’s Golfgate can reveal a more responsive EU

24 August 2020

The Irish public are outraged about an elite golf jolly that flouted Covid-19 restrictions. One minister has resigned and European Commissioner Phil Hogan is under severe pressure. A swift departure would help Brussels look less like a technocratic refuge from popular politics.

Ryanair pain will be milder than rivals’ misery

27 July 2020

CEO Michael O’Leary is focusing on preserving cash and cut staff costs by 77% in the first quarter. Competitors that have more unionised employees can’t tighten their belts as much. Another big wave of infections would be even worse for them than the 11 bln euro budget carrier.

Irish eyes keep smiling despite a strict lockdown

29 May 2020

Village pubs are shut until August. The Emerald Isle’s restrictions may look extreme but have kept deaths low even if unemployment has soared to near 30%. Yet with ample supplies and a clear reopening plan, Matt Damon isn’t alone in finding Ireland an ideal pandemic bolthole.

Irish banks caught between two crises

12 May 2020

Bank of Ireland and Allied Irish Banks’ shares have performed worse than most European lenders this year. A recession and 25% unemployment explain some of the pain. The bigger worry is that the state, an investor following the 2009 bailout, will force both to prop up the economy.

Ireland has more pressing needs than unification

25 February 2020

Sinn Fein, which wants to form a coalition government, aspires to unify the island. Even if Irish voters were willing to take on the costs this would entail, their Northern Ireland peers are more ambivalent. Healthcare is higher up the agenda on both sides of the border.

Shock Irish vote spells end of budget restraint

10 February 2020

Nationalist Sinn Fein unexpectedly polled the most votes in a weekend election. The party won’t be able to form a coalition if its centre-right rivals stick to their guns and shun the victor. Even so, its big spending plans, which won over voters, will influence economic policy.

Ryanair’s budget can stretch to truer green boasts

5 February 2020

The low-cost carrier has been ticked off for promoting itself as a low-carbon emitter. True, its planes are getting more efficient, but it’s still a huge polluter. Ryanair’s profitability means boss Michael O’Leary can afford to match rival easyJet in paying to offset its CO2.

Irish election fight ducks Brexit but victor won’t

4 February 2020

Prime Minister Leo Varadkar may be ousted at the weekend. The campaign has been dominated by housing and healthcare concerns and politicians of all stripes are responding with spending pledges. The winner will struggle to deliver unless Britain’s EU trade negotiations go well.

Rising fares squeeze Ryanair’s budget mantra

10 January 2020

The low-cost carrier lifted its full-year earnings forecast by 17% after a bumper holiday season. Boss Michael O’Leary can thank Thomas Cook’s demise and grounded 737 MAX planes for dearer tickets. But price hikes dent the halo of the self-appointed patron saint of cheap flights.

Ryanair’s ascent could yet hit a 737 MAX ceiling

4 November 2019

The European budget carrier’s shares have soared, mainly since a price war is proving less painful than feared. Yet darker clouds lie ahead. Delays in reviving the troubled jet are crimping growth in passengers. Without the more efficient plane, costs will be harder to control.

Irish bookie’s $6 bln deal is worth a flutter

2 October 2019

Paying a 38% premium usually raises eyebrows. Not so with Paddy Power parent Flutter Entertainment’s all-share acquisition of Toronto-based Stars Group. Cost savings alone almost justify the price. Meanwhile a revenue boost looks credible as legal U.S. sports betting opens up.

Ryanair boss’s bonus gets an apt level of anger

19 September 2019

Almost half the budget airline’s shareholders voted against a package that could see CEO Michael O’Leary get 99 mln euros over five years. They stand to gain if he hits his targets. But given it looks relatively easy to do so they are right that it’s only barely acceptable.

Brexit pulls Ireland out of ECB force field

30 July 2019

Yields on Irish bonds have been rising even as they fall across the euro zone. Fear of a chaotic UK exit from the EU outweighs hope of European Central Bank easing. Dublin lacks its own currency or control of monetary policy. Public spending will have to cushion any shocks.