There was a landmark change this week for investors in one of the world's major stock markets, the Nasdaq, when it finally joined the modern era and abandoned fractions in its pricing. In doing so, it follows the blue-chip Dow Jones which tread the same path recently.
There is something ironic about the conversion of the Nasdaq to decimalisation. This, after all, is the index that prides itself on its electronic platform and its blue-chip technology constituents. Yet, it has become the last major global market to abandon the traditional system of marking share prices in fractions.
Apart from pricing its constituent stocks in a system which investors worldwide can understand, there has been another advantage for investors - smaller spreads. It appears the spreads - the difference between the price at which shares are bought and sold - has contracted under decimalisation. Now there is something to cheer in this bear market.
European Central Bank president Wim Duisenberg put up a fighting performance this week as the bank's governing council held firm against mounting pressure within and outside the euro zone for a cut in interest rates. With speculation mounting about Mr Duisenberg's often mooted departure from the ECB's top job mid-way through his term of office, he was not about to play the lame duck as many would like to portray him. Stressing the primacy of price stability he told reporters the ECB would persevere with its waitand-see policy: "You will wait and we will see," he joked. Could it be that he is pitching for a full term?
Eircom's announcement this week that it had lost its ardour for multimedia investment begs the question of what the former State telecoms outfit does see as its future. It is flogging its mobile arm to Vodafone and has retreated from its two great strategic adventures since privatisation - expansion abroad and multimedia.
That really only leaves it with its fixedline business. At flotation, Eircom itself felt this would not be sufficient on its own to give the company a viable future - and that was before the increase in demand for local loop unbundling and downward pressure on charges.
It looks increasingly like Eircom is simply preparing for the inevitable takeover of what remains after Eircell is sold. Letting potential bidders like Dermot Desmond and Denis O'Brien know that the company has thrown in the towel on independence only reduces the price the company is likely to fetch.
Ireland addressed the reality of an increasingly flexible and mobile workforce this week with the arrival of the framework for the new Personal Retirement Savings Accounts (PRSAs). PRSAs will allow people set aside money in one scheme to supplement their State pension. Contributions will attract tax relief and people will be able to contribute to the accounts regardless of whether they are employed full-time or part-time, are self-employed, unemployed, students or home-makers.
They will hopefully end the morass of multiple pension schemes with a plethora of restrictions. Let's hope some of the mumblings about regulatory structure and employers' contributions do not conspire against a major advance in pensions.
dcoyle@irish-times.ie
