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Irish bonds recover on bail out hopes

Fri, 12th Nov 2010 17:11

Having reached around 9.25% on Thursday Irish 10-year bond yields have fallen back as Ireland is in talks with the EU about emergency funding.This was despite earlier denials from the Irish government, which had been saysing an EU rescue would not be needed. Proposals for the rescue package are expected to be finalised next week, possibly at a meeting in Brussels on Tuesday. The Irish market got the jitters when, earlier this week, German Chancellor Angela Merkel said taxpayers could not be left to bail out debt-ridden countries. The EU has pledged to support the Irish Republic if it is needed and Irish bond yields have fallen back to just below 8.5%. This is the first time Irish bond prices have risen in 14 days. In contrast, German bunds are falling in price with ten-year yields nearly seven basis points higher at 2.5%. This narrows the gap between German and Irish 10-year bonds but it remains nearly six percentage points. Shares in Bank of Ireland and Allied Irish Banks recovered on the day.
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30 Nov 2009 12:09

London midday: Share prices steady down

UK share prices are stabilising at lower levels after hopes of a continued rebound from the Dubai-inspired shake-out on Thursday were quashed by disappointing UK consumer confidence figures. Figures from market research firm Gfk NOP showed consumer sentiment fell to -17 from -13 in October. Middle

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30 Nov 2009 08:36

London open: Footsie wobbles on Dubai slump

News of heavy selling in the Middle East, which began trading for the first time today following the four-day Muslim holiday of Eid, had markets in retreat Monday. Futures prices had indicated an early 30-point gain for London after Asian markets rallied on expectations the potential fallout from t

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30 Nov 2009 07:02

Allied Irish confirms NAMA participation

Irish banking group Allied Irish Banks has confirmed its participation in the Irish government’s asset acquisition programme. Participation in the National Asset Management Agency (NAMA) programme will be voted on at an extraordinary general meeting (EGM) on 23 December. NAMA has yet to specify wh

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30 Nov 2009 06:56

London pre-open: Rally to continue

The recovery from Thursday's Dubai drubbing looks set to continue, with dealers predicting the FTSE 100 will open around 30 points higher. Pre-tax profits were ahead of expectations in the year to September 30 at travel operator Thomas Cook, as the increased ticket prices to cope with falling custo

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18 Nov 2009 07:46

Allied Irish may breach NAMA estimate

Allied Irish Banks' bad debt situation has deteriorated further with the bank now suggesting the impairment write-down on its loans being shunted into the Irish toxic asset insurance scheme (NAMA) may top the government's original estimate of 30%. Previously Allied Irish had said that the 30% figur

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20 Oct 2009 12:32

Broker tips: Xstrata, Autonomy, Irish banks

The third quarter production update from Swiss miner Xstrata contained ‘some solid numbers’ but FinnCap thinks investors will be better off switching to one-time Xstrata merger target Anglo American. FinnCap reckons that Anglo American has a higher quality asset portfolio and should be able to outp

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20 Oct 2009 11:01

Broker snap: Nomura warms to Irish banks

Nomura Securities is prepared to take a chance on the battered Irish banking sector on the assumption that the government’s proposals for its bail-out vehicle, the National Asset Management Agency (NAMA), do not undergo significant changes before implementation. The Japanese broker has upgraded Ban

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18 Sep 2009 06:17

Friday newspaper round-up: Lloyds Banking, BSkyB, African Minerals

Lloyds Banking Group has been forced to abandon its plan to withdraw from the Government's toxic debt insurance scheme after failing to raise enough capital to meet the Financial Services Authority's strict requirements. The decision dashes the hopes of Eric Daniels, chief executive, who wanted a w

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14 Aug 2009 16:17

Allied Irish confirms approach

Allied Irish Bank confirmed it has received interest from a third party to take a minority stake in the Irish bank. The group made the comments after the Irish Times reported that Allied Irish had received an approach from a major bank in Canada. "However any discussions with regard to this matte

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5 Aug 2009 09:58

Allied Irish Bank swings into losses

Allied Irish Bank swung into pre-tax losses for the year and said it expects the operating environment to remain "extremely difficult" in 2009. Pre-tax losses came in at €872m from €1.27bn profit last year as net interest decreased 4% to €1.69m due to lower loans. But with other income of €1bn, wh

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