A round-up of today's other business news in brief ...
Bank of Japan to lend banks up to 7.8bn
The Bank of Japan has unveiled a draft plan to provide up to Y1,000 billion (€7.8 billion) in subordinated loans to large commercial banks in its latest effort to stem the economic crisis.
The move, which it said it was exploring as an “extremely extraordinary measure”, follows the Bank of England’s decision to buy UK government debt and the Swiss National Bank’s plan to intervene in currency markets to drive down the Swiss franc.
In other moves yesterday, an International Monetary Fund official revealed it has dramatically cut estimates for global growth this year, with Japan the worst performing big economy. – (Financial Times service)
Fed may increase its asset purchase
Federal Reserve chairman Ben Bernanke and policymakers may have to ramp up their purchases of mortgage securities and other assets after the economy and job market deteriorated further.
The Federal Open Market Committee, which met in Washington yesterday and meets again today, needs to redouble its efforts after the central bank’s balance sheet shrank 17 per cent from a $2.3 trillion December peak. – (Bloomberg)
Largest AAA states can absorb costs
The largest AAA-rated economies can absorb the near-term economic and fiscal costs of the financial crisis and respond to the extreme shocks while maintaining very strong credit quality over the medium to long term, credit ratings agency Fitch said.
In a new report, Fitch said the largest AAA-rated countries, in particular the US, Germany, France and the UK, had “an exceptionally high degree of fiscal financing and balance sheet flexibility”. However, it added that Ireland, Spain and Switzerland had the highest direct exposure to shocks, in part due to the relative size of their banking systems.
Building group to delay results
SIG, the owner of Irish Insulation Systems and Capco Roofing, said yesterday that it was still working on plans to raise cash from investors. It delayed the release of its 2008 results, which had been scheduled for yesterday.
The London-listed building materials group, which has over 10 Irish subsidiaries, did not set a new release date. Analysts said an inability to win enough investor support or to agree with participants on the size of the deal may be reasons why SIG has not announced a share sale yet. – (Bloomberg)
NCB urges aid for first-time buyers
A subsidy for first-time buyers would help kick start the property market and remove part of the overhang of finished or part-finished unsold homes, NCB Stockbrokers has proposed.
The firm said the economy would benefit from the increased spending by consumers on housing appliances, furniture and fittings. NCB also proposed that a State-backed rent-to-buy scheme would encourage more prospective buyers.
UK stockbroker to open Cork office
British stockbroking firm Redmayne-Bentley is to expand its network to Ireland by opening an office in Cork.
The company has hired three Irish people with stockbroking and financial services experience for its Cork team. The office is Redmayne-Bentley’s first outside the UK, where it has more than 30 offices. The firm was established in 1875 and its head office is in Leeds.
