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The Briefcase: Shamrock for sale, an Apple record and some new Greeks in town
This was the week in business.
EVERY WEEKEND, TheJournal.ie asks its readers to put their feet up and take a look back at all the goings-on from the world of business.
Once again it’s time to delve deep inside The Briefcase for all the important – and sometimes less-important – financial news that has come out this working week:
Need to know
After more than a month of circling one another in a kind of airline dance of the seven veils, a marriage between Aer Lingus and British Airways parent company IAG moved a step closer to consummation this week.
This time the price on the table was right - €2.55 a share, valuing the Irish national carrier at about €1.35 billion.
The catch – and it’s a big one – is getting agreement from the government to hand over its 25% share in the airline willingly.
All the major political parties except Fine Gael – including many TDs from its coalition partners at Labour – have voiced their opposition to the deal, variously citing jobs, connections and the broad “strategic interest” of keeping a major piece of the airline.
Add to that chorus of opposition the trade unions, pilots’ union and various regional bodies, and it appears IAG has a whole lot of trouble on its hands.
Popular opinion also seems to be running against the deal, which would lead to the government taking away about €340 million for its stake, if our poll from this week is anything to go by:
But analysts who keep a close eye on airline dealings aren’t so sure the sale will be scuppered in the Dáil once IAG and its Irish boss Willie Walsh gets the chance to properly make its case on the hot-button issues.
That pitch is expected to cover everything from guarantees on where the airline flies to maintaining its distinctive brand and livery. Whatever happens, we hope these door handles are part of the deal:
Nice to know
- The Central Bank produced its new mortgage rules. And the long-awaited lending restrictions included a partial climb-down from the strict, 20% deposit cap proposed for all purchases. The rules will instead include a 10% deposit as the minimum for first-home buyers on properties worth under €220,000.
- The anti-austerity Syriza took power in the Greek elections, triggering what promises to be an eventful few months in the eurozone. And the new government wasted no time in announcing changes, like an increase in the minimum wage and the sale of state assets
- Apple broke the record for the biggest corporate profits in history when it racked up $18 billion (€15.9 billion) over the last quarter. That came as it announced it has sold its one-billionth (!) iOS device and started to make some serious inroads in China
Now you know
- Drinkers around the world are falling out of love with Guinness, with global consumption of the Irish stout down – although sales in Ireland finally increased
- The salary of RTÉ’s star new presenter, Ray D’Arcy will easily be covered by sponsorship money, according to the broadcaster’s incoming chair. D’Arcy’s paycheck has been tipped to be as high as €500,000
- Hackers from the Lizard Squad claimed responsibility for an attack on the Malaysia Airlines website, which was redirected to a page with the message: “404 – Plane Not Found”
- Microsoft is facing up to a future where revenues from its core Windows software are on the slide. But it’s not all bad for the tech giant, which has been recording strong Xbox sales and is starting to see a payoff for its investment in the cloud
- A unique line in Irish lingerie is being sold to the French. Local startup THEYA Lingerie has developed bras specifically for women who have had breast surgery
- The CEO of McDonald’s stood down after just two years at the helm of the troubled fast-food giant. The company’s share price jumped 3% on the announcement
One for the road
For this week’s foray into the world of video, we can’t go past this gem from our friends at The42.ie.
Taking advantage of the clear ignorance many members of staff from TheJournal.ie and DailyEdge.ie have when it comes to American football, they put together this package:
50 points for a touchdown, eh? Morto.
Originally posted 31/01/2015
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