Live News: BOI appoints new area director; Press Up’s likely new partner

Welcome to the Business Post’s Live News section. We’re here all day to keep you up to date on the latest developments in business, tech and current affairs.

16.40 - Deutsche Bank singles out Diageo as a bad investment

Our markets correspondent Kathleen Gallagher has gone on a deep dive into the latest report from Deutsche Bank, which points the finger at Diageo as the worst investment out of its peers.

This comes amidst a “sustained slowdown” in the overall drinks sector, according to the lender, which has come about partially because of elevated home inventories of spirits post-pandemic.

One bright spot is the growth of pre-mixed cocktails and similar products in the so-called ready to drink (RTD) category.

15.00 - Davy bullish on Flutter amid rapid US growth

Davy has boosted its target share price for Paddy Power-owner Flutter as it doubled down on its outlook for the company’s US business.

Paul Ruddy, an analyst at the stockbroker, increased the target price from $216 to $234, with shares trading at $186.05 on Wednesday.

“The investment case is continuing to improve as FanDuel has inflected from an attractive opportunity to an attractive business,” Ruddy said in a note.

Davy predicts a compound annual growth rate (CAGR) of 22 per cent for the US business, contributing to an overall 12 per cent growth rate for the business as a whole..

Kathleen Gallagher has the full story.

14.40 - University of Galway president to step down

Professor Ciarán Ó hÓgartaigh, president of the University of Galway, has decided to step down from his role at the beginning of the new academic year.

The previous professor of accounting at University College Dublin said he is stepping down after “long and careful consideration” in order to pursue other interests, bringing an end to his tenure which began in January 2018.

“This is the right time as our university is developing a new strategy for 2025-2030; we will have a new governing authority in early 2025; and we are preparing for a new academic year,” he said.

Máire Geoghegan-Quinn, chair of the university’s governing authority, paid tribute to Ó hÓgartaigh and wished him well for the future.

“Professor Ó hÓgartaigh steered this university through the unprecedented challenges of the pandemic, with a considerate and caring approach,” she said. “He has lived and worked through the values of respect, openness, excellence and sustainability”.

14.10 - Aer Lingus and pilots to meet to prevent all-out strike

Aer Lingus pilots who are members of the Irish Air Line Pilots’ Association (Ialpa) have agreed to meet the airline for talks on Thursday, as the pay dispute between the two rumbles on.

Yesterday both parties held separate meetings with the Labour Court in a last-ditch attempt to resolve the row before planned work-to-rule this morning. However, after hours of discussions, in which the court was seeking information from both sides, the court said it would not currently intervene.

Ialpa is seeking a pay increase to meet the cost of living based on inflation and “to bring Aer Lingus pilots’ pay up to the rates of competitor airlines”, which works out at an estimated 23.88 per cent over a four-year period.

Ellie Donnelly has the full story.

13.45 - LGIM’s ESG funds selling Glencore stake on coal concerns

Legal & General Investment Management said its ESG funds will divest from Glencore, the world’s biggest coal shipper, on concerns about its production of the most polluting fuel, as reported by Bloomberg.

While most of its rivals have either ditched — or plan to exit — thermal coal, Glencore has instead said it plans to run its mines to closure by 2050. The commodities giant says the world still needs the dirtiest fossil fuel and that it’s the best owner of the mines.

Still, some investors such as LGIM have demanded more details about the pace of that run down. They have also asked for more details on how Glencore’s projected thermal coal production aligns with the Paris Agreement and efforts to limit the increase in global temperatures to 1.5C.

“LGIM remains concerned that Glencore has not disclosed plans for thermal coal production that are aligned with a net zero pathway,” the investor said today.

13.20 - BOI appoints new area director for the West, Midlands and North East

Marie Meehan has been appointed as the new area director for the 61 Bank of Ireland branches in the West, Midlands and North East of the country.

The Galway native has more than two decades of experience in financial services, and holds a BA in Irish and Economics from University College Dublin, a H.Dip in Financial Services and a Professional Diploma in Financial Advice.

She is now in charge of more than 500 staff across the area, working in roughly a third of the bank’s 182 branches across the island of Ireland.

Alan Durcan of Retail Ireland said Meehan’s experience helping customers over many years would be a “huge asset” to her in the new role.

12.45 - EU refines EV tariff rates after manufacturer consultations

The European Union marginally revised its proposed tariffs on electric vehicles imported from China after receiving more information from the affected companies, according to reporting from Bloomberg.

The new provisional rates — which will come on top of the existing 10 per cent duty — are: 37.6 per cent for SAIC Motors, 19.9 per cent for Geely and 17.4 per cent for BYD.

Other EV producers in China that cooperated with the investigation but have not been sampled will be subject to a weighted average duty of 20.8 per cent, while firms that didn’t cooperate will face an additional 37.6 per cent levy.

12.20 - EU finance portfolio ‘not guaranteed’ - Michael McGrath

Michael McGrath, the outgoing finance minister, has said that there is no guarantee of him being given a financial portfolio ahead of his nomination as a European Commissioner.

McGrath said that while his background and skillset pointed to an economic or financial brief as a commissioner, many member states would be seeking the same.

The relationship between senior government and EU figures like Ursula von der Leyen would aid him in seeking the “best possible portfolio”, McGrath told RTÉ Radio 1’s Morning Ireland programme.

Eoin O’Hare has the full story.

11.35 - Revolut app launches second layer of authentication

Revolut has made its wealth protection feature available in Ireland, in a bid to prevent hackers from accessing customers’ accounts.

As part of Revolut Secure, its collection of in-app security features, the fintech has introduced an extra layer of biometric identity verification for users’ savings and in the app.

The feature will help to protect customers who have had their unlocked phone stolen, or their password and face recognition compromised, Revolut said, by verifying the identity of the user against the selfie ID checks completed when first setting up an account.

Eoin O’Hare has the full story.

10.30 Who are Cheyne Capital?

Cheyne Capital, the London financier, isn’t a household name - just the way they like it, you’d imagine. As Killian Woods and Catherine Sanz report this morning though, they might be about to become a lot more well-known given their pending deal to take a majority equity stake in Paddy McKillen jnr’s Press Up group.

Our reporters have hit the phones and dug into their previous deals - including on a number of high-profile Dublin landmarks - to paint a picture of what looks like being McKillen jnr’s newest partner.

You can read Killian and Catherine’s exclusive report on the deal from last Friday here too.

09.45 Buy the Nvidia dip? Not yet.

Nvidia has rebounded somewhat from a significant dip over recent days, as we reported earlier.

Barron’s has a guide to trading the stock now, which makes for interesting reading. Like all such guides, the advice should, of course, be taken with a significant pinch of salt given the unpredictability of the markets and the dangers of trying to make a killing on short-term volatility.

Still, the article is a good overview and worth a few minutes of your time.

“Most people should be looking for a way in, not a way out,” says Rich Ross, head of technical analysis at Evercore ISI told the publication. See what other experts are saying here.

09.35 War of words intensifies

The back-and-forth between Aer Lingus and its main pilots union shows no signs of abating with Mark Tighe, the president of the Irish Air Line Pilots’ Association (Ialpa), this morning claiming that Aer Lingus was now “union-busting”.

Tighe said the airline had moved from the negotiation stage to a more unproductive stance - something Aer Lingus clearly strongly disagrees with given its insistence that it wants to get around a table to resolve matters as soon as possible.

“They're now attacking individual pilots, and we can expect to see those attacks escalating,” Tighe said.

Read his full comments here and our extensive reporting on the Aer Lingus dispute here.

09.10 Firms take advantage of a boom in demand for junk debt

The Financial Times has an interesting report this morning US companies being able to cut their borrowing costs to a considerable degree.

The paper reports that US companies have been able to reprice almost $400 billion (€374 billion) of debt at lower interest rates this year due to booming investor appetite for junk loans, in an easing of financing conditions for corporate America.

Even before the Federal Reserve cuts interest rates from a 23-year high, a number of borrowers in the US leveraged loan market have benefited from the equivalent of two quarter-point Fed cuts, according to strategists at Goldman Sachs.

The $391 billion of so-called repricing deals is the highest ever at this point in the year, according to data from PitchBook LCD going back to 2002, equal to more than a quarter of the $1.34 trillion leveraged loan market.

08.45 AI job application reviews

The use of AI seems to grow week by week. New research from Hays Ireland has found that 14 per cent of companies use artificial intelligence (AI) to evaluate job applications.

This includes scanning CVs or scoring job candidates to help filter the most suitable candidates based on the job description.

The data shows that 80 per cent of candidates want to be informed when employers use AI in the application process, however, only 54 per cent of organisations let candidates know.

The research also shows that job seekers are using AI to ensure their CVs are tailored to specific job advertisements.

The use of AI to review applications is more likely in the public sector (25 per cent) compared to private sector organisations (12 per cent).

08.30 Multi-billion-euro River Shannon plan

The government has agreed to a €5 billion project to build a water pipeline from the River Shannon to Dublin.

The 170 km pipeline is necessary to support housing and economic growth.

The capital is currently dependent on water from the River Liffey and two treatment works in County Kildare.

The construction, which is expected to take five years, will involve abstracting water from the Shannon at Parteen Basin downstream of Lough Derg and piping it through counties Tipperary, Offaly, and Kildare to a reservoir at Peamount in County Dublin.

The proposal fulfils the need for urgent action on water supplies outlined in the Housing Commission report. However, it is likely to face some opposition on environmental grounds.

07.55 More ECB rate cuts on the horizon

A senior ECB policymaker has rowed in behind investors predicting two more rate cuts this year. Good news for businesses and mortgage holders, if it comes to pass.

Olli Rehn, the Finnish central bank chief, said he thought such projections were “reasonable”, raising hopes that rates could fall significantly further this year yet.

You can catch-up on his comments in full here.

07.45 Nvidia share slide ends - what now?

Nvidia shares showed signs of steadying after a $430 billion (€401 billion) sell-off sent traders searching for signals as to where the bottom may be.

The stock rose as much as 6.3 per cent on Tuesday, set to snap a three-day rout that had pushed it into a technical correction – when a stock drops 10 per cent or more from a recent peak — for the first time since April.

While technical analysis for insight in historic trading patterns isn’t precise, it can provide a useful roadmap for investors - who are now examining them closely to see what might come next.

07.40 AIB cuts mortgage rates

AIB is knocking 0.25 per cent off four-year fixed-term mortgages as competition in the sector ramps up.

AIB is reducing its four-year fixed mortgage rate for customers borrowing €250,000 or more by 0.25 per cent from July 3, 2024.

The move follows the European Central Bank’s recent reduction in rates. In its announcement, AIB took the opportunity to say it had taken a ‘very measured approach’ to rate increases over recent years.

Get all the details here.

07.25 Disruption begins for passengers

Bad news to kick off this morning as Aer Lingus passengers are beginning to feel the first effects of pilots’ industrial action.

Pilots at the Irish Air Line Pilots Association (Ialpa) this morning kicked off a work-to-rule after presentations to the Labour Court yesterday failed to break the impasse between the union and the airline.

Ialpa is seeking a pay increase to meet the cost of living based on inflation and “to bring Aer Lingus pilots’ pay up to the rates of competitor airlines”, which works out at an estimated 23.88 per cent over a four-year period.

Aer Lingus said the union’s claim would actually amount to a 27 per cent pay increase.

Ellie Donnelly has followed every twist and turn in the saga. You can read her analysis of where the dispute now stands here this morning.