VIEW FROM THE GROUND FLOOR: Boundless optimism seems to have replaced unremitting gloom as the US manufacturing sector took off again in February and European surveys were at their most positive in a long time.
The Chicago Purchasing Managers' Index has moved up in the past three months from 41.5 in December to 45.1 in January and 53.1 in February. A reading of more than 50 signals expansion - the last time Chicago recorded this was in July 2000.
The net result of the numbers from Chicago was to see traders suddenly acting benignly towards riskier investments and buying up corporate paper once again at the expense of safer US treasuries.
One of the companies that issued paper last week was Heinz, whose paper is yielding 123 basis points over treasuries. In the depths of the despair that has gripped markets over the past few months, 123 basis points hasn't been enough in many cases to entice traders out of treasuries, but now they're hoping the rebound will bump up corporate revenues and so have happily gone with the baked beans and tomato sauce as the way to make money.
The latest survey from the Chartered Institute of Purchasing and Supply in Britain has revealed that manufacturing output there has risen for the first time in a year and they're indicating that manufacturers are feeling much more optimistic than previously.
According to the CBI, more manufacturers are expecting output to rise rather than fall over the next few months, which has reversed previous sentiment and - tellingly perhaps - the price of computer chips has finally edged up, which implies the glut that has overhung the market for so long might finally be coming to an end.
For ourselves, too, we've seen an expansion in the manufacturing sector for the first time in seven months - the NCB Purchasing Managers' Index crept in at 50.4, just above that magic 50 level. The accompanying report reveals that investment spending has begun to improve and that higher volumes of orders have encouraged companies to increase production levels.
However, inventories continue to fall as firms are reluctant to have too much stock in the warehouse. It's clear that stock and credit controls are uppermost in the corporate consciousness at the moment.
And, of course, the great Irish barometer - the housing market - has been booming since January. You can almost hear the collective sigh of relief from estate agents as they can once again described €500,000+ houses as "realistically priced", while those who purchased a year ago can stop thinking negative equity and start thinking of redecorating the kitchen, buying new furniture and upgrading the bathroom, courtesy of the bank loan that they'll be offered soon.
I'd noticed a fall-off in loans being offered by my bank in the past few months but, with all the inevitability of a currency trader betting on the dollar going up, a letter arrived in the post last week to tell me that I had been pre-approved for credit. It's so nice to know that my standing in the banking community is such that they're pre-approving me for doing up the garden before I've even asked but then, even if I was to default on my pre-approved €15,000 limit, I suppose I wouldn't dent the balance sheet as much as the Treasury department could on a bad day.
If newspaper reports are to believed, of course, the banking landscape in the Republic could change radically since the current idea being floated is that of a merger between AIB and Bank of Ireland. Apparently the new Bank of Ireland chief executive, Michael Soden, believes that this would be in the best interest of shareholders and the Irish customer. I'd love to believe Michael - who, from all accounts, seems to be a hands-on chief executive with a thrifty approach to in-house benefits - but I can never be entirely convinced that mergers bring any benefits whatsoever to customers.
They might help shareholders with an initial upward momentum in share price (although I'm of the opinion that the biggest winners are the advisers who pocket the lucrative fees), but to keep on helping shareholders the new organisation needs to be a lean, mean, fighting machine and that's difficult to maintain as a massive conglomerate. And, of course, the employees are often losers, since in a merged scenario it's their jobs that are at risk.
The reasons being touted for the merger are both defensive - to ward off overseas banks who might be sniffing around - and offensive - to make the new financial institution an aggressive global player.
The thinking is that a domestic institution will have a better feel for domestic business than an overseas one and there is a lot of truth in that. Which is no doubt what overseas banks will say when they see another aggressive global player trying to muscle in on their market too.
Anyway, as far as I can see, the globalisation of banks hasn't led to any better deal for consumers no matter what country they're in. Where I'm concerned, the bank that gets my vote will be the one that steps up to the plate and manages - however it does so - to allow me to conduct my banking in any country in the world.
I accept that might be too broad a definition so even within Europe would be a help. Or within the British Isles as a starter! I have already complained about the ridiculous charges for sending money to another EU country. The first bank to bring these charges down to realistic levels will see me standing at the door with a lodgement slip in my hand.
As a customer, I couldn't care less whether my bank is domiciled domestically or overseas once it gives me the service I require. Which does not actually mean pre-approving me for credit but does mean plenty of cash machines, short queues and equitable charges. And whose staff are properly paid for the job that they do but who are not constantly under pressure to sell me other services like life assurance or tracker bonds when many of them are so ill-equipped for the task.
It's all about doing what you're good at. But, in the drive for success, companies often forget about that.
