Live News: Aer Lingus talks break down; Google data centre expansion; YouTube’s AI plans

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.

17.25 - US consumers’ pandemic savings pot has run dry

Bloomberg has a long-form report on how the savings that US consumers built up over the pandemic period has now run dry.

In it, they look at the impact of that on the domestic economy over the last few months, which has seen somewhat of a slowdown in retail sales and an element of caution entering the fray among shoppers.

This contrasts with the usual behaviour of US consumers, who typically show resilience in the face of rising costs, but the slowdown comes as their roughly $2 trillion (€1.9 trillion) in Covid household savings has been extinguished.

17.00 - Labour rules out renegotiation of Brexit

Labour has effectively ruled out an ambitious review of post-Brexit ties with the EU, citing fears of a destabilising impact that would hamper British growth.

It comes as British business leaders said that they wanted the next government to be as ambitious as possible when it comes to easing trade barriers with Brussels.

Jonathan Reynolds, the shadow business secretary, marked the conclusion of his three-year charm offensive with business chiefs and City bosses at the British Chambers of Commerce (BCC) annual conference, only a week before polls open.

Dominic McGrath has the full story.

16.25 - Cocoa heads for longest decline in two years on rainy weather

Cocoa headed for the longest run of losses in two years in New York as focus turns to favorable weather that could aid crops in crucial West African growers.

As reported by Bloomberg, futures fell as much as 2.3 per cent on Thursday, heading for a sixth session of declines on optimism that rains in Africa will support the current mid-crop and next season’s output.

Crops will continue to develop amid “more showers and favourable soil moisture,” according to forecaster Maxar Technologies.

Poor harvests have fuelled a global supply crunch and pushed cocoa above $11,000 a ton this year. While futures prices have since eased — heading for the first quarterly loss in two years — the market remains volatile amid a lack of liquidity, with prices recording big swings this week.

16.00 - US Supreme Court rejects Sackler settlement case

The US Supreme Court today rejected the argument made by the Sackler family in a 5-4 ruling, to reorganise Purdue Pharma, finding that it would have inappropriately provided them with legal protections.

As reported by NBC News, the court ruled that the bankruptcy court did not have the authority to release the Sackler family from legal claims made by victims of the Opioid crisis.

The deal proposed by the Sacklers involved a payment of $6 billion (€5.6 billion) that was to be used to settle opioid claims, but it came in return for a complete release from any and all future claims.

The Supreme Court ruling means that settlement talks will have to resume again, with no guarantee of an agreement.

Purdue, creators of the opioid OxyContin, made billions in sales from the drug, but it fuelled a sharp rise in opioid deaths in the US, for which many families now are seeking compensation.

15.24 - Breaking: Talks between Aer Lingus and Ialpa break down

Talks between Aer Lingus and its pilots who are members of the Irish Air Line Pilots’ Association (Ialpa) concluded on Thursday without agreement.

In addition, no further talks between the two are planned.

Members of Ialpa are meeting with airline investors today for a questions and answers session to discuss the dispute with them.

Aer Lingus pilots who are members of Ialpa are currently working on a work-to-rule basis, and will hold an eight-hour strike on Saturday morning from 5 am.

Aer Lingus has so far had to cancel 270 flights because of the industrial action, impacting 40,000 customers.

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.

15.34 - Ialpa ended pay talks, says Aer Lingus

In a statement on Thursday Aer Lingus said it had engaged constructively in the meeting with Ialpa / Forsa in order to try to find a resolution to the pay dispute with Ialpa.

“The airline sought to discuss issues involving improvements to productivity and flexibility including modernisation of agreements that could help build a pay increase for pilots beyond the 12.25 per cent increase that had been agreed with all other collectively bargained groups,” a spokesperson for Aer Lingus said.

“The discussions did not progress to a point where a resolution could be reached and they were ended by Ialpa. Ialpa indicated that it did not have a mandate from its members to discuss productivity and flexibility– matters which are essential in any pay negotiations. Aer Lingus suggested to Ialpa that it should consider taking steps to adjust its mandate so that meaningful discussions on pilot pay can take place,” the statement added.

The airline suggested that the eight hour strike this Saturday would be an “opportune time” for Ialpa to meet its members to adjust its mandate.

“The Labour Court indicated to both parties on June 25 that it would respond positively to a joint referral of the dispute to the Labour Court for its assistance. In this context, Aer Lingus is willing to proceed with a formal joint referral to the Labour Court and calls on Forsa to agree to such a formal joint referral,” the carrier said.

14.35 - YouTube targeting AI deals with music labels

Video platform YouTube is looking to strike deals with major music labels in order to clone famous artists, according to reporting in the Financial Times.

The news comes after the company debuted a generative AI feature that allowed users to create music in the style of artists like Charlie XCX, John Legend and T-Pain.

YouTube is looking to pay lump sums of money to major labels such as Sony Music Entertainment, Universal Music Group and Warner Records, in exchange for licensing their songs to train their AI models.

14.15 - Boots to shutter more US stores despite better than expected sales

Boots has revealed a jump in sales for the latest quarter, as its parent firm cut profit forecasts and announced US store closures.

Boots UK revealed higher sales across its pharmacy and retail businesses over the quarter to the end of May.

However, total sales growth slowed to 1.6 per cent as it was impacted by store closures over the past year.

Over the past year, Boots has shut around 300 shops to take its store estate down to 1,900 sites.

On Thursday, parent company Walgreens Boots Alliance said it plans to shut more of its underperforming US shops following a strategic review.

14.10 - Google to expand data centre footprint in Dublin

Google is seeking to expand its data centre operations footprint in Dublin according to a notice published in the national press.

The company has said it intends to build a 72,400 sq m data storage facility at its Grange Castle site in Dublin 22. The facility will include data halls, offices, staff facilities and other support services. The application also includes a creation of a new travel route to connect Grange Castle Business Park South and Profile Park Road.

Charlie Taylor has the story.

14.00 - Bank of Ireland among backers of new €55 million housing fund

Bank of Ireland, the Ireland Strategic Investment Fund (ISIF), and Pearl Property Managers have launched a new fund worth €55 million to support the delivery of more than 2,500 new homes over the coming years.

The Irish Homebuilding Equity Fund (IHEF) will provide housebuilders with equity to complete projects of 50 - 500 homes across the country.

The fund will partner with developers who “have a strong track record in housebuilding and residential development”, and share the burden of financing the project.

12.40 - Chopped chain snapped up by private equity firm

KnightBridge Group, a private equity firm, has acquired Irish food firm Freshly Chopped, which runs the Chopped chain of quick-service salad bars around Ireland, the UK, the Netherlands and Cyprus.

The food chain, which was founded by Brian Lee and Andy Chen in 2012, has more than 60 outlets across its markets.

The recently launched hospitality division of the private equity firm will retain the existing senior management and head office team, it said.

11.50 - Enterprise Ireland reports a record year for exports in 2023

Enterprise Ireland client exports reached a record €34.57 billion in 2023.

Overall non-food exports increased by 8 per cent, according to a statement from Enterprise Ireland, with technology and services exports up 10 per cent to €8.5 billion.

Industrial and lifescience exports were up by 7 per cent to €10.38 billion, while food and sustainability exports were down by 4 per cent to €15.7 billion, largely impacted by international dairy sales and prices, according to the state agency.

Ellie Donnelly has the full story.

11.20 - Inbound tourism rose 8.5 per cent in May

The number of visitors to Ireland’s shores rose 8.5 per cent last month, compared with the same period a year earlier, to more than 620,000 people.

The largest contingent of visitors came from Great Britain, at 34.9 per cent, followed by the US on 20 per cent and Germany at 7.

Tourists travelling to Ireland most frequently cited leisure and holidays as the reason or visiting, mentioned by 45 per cent of people, ahead of 21 per cent who were visiting friends and relatives, and 15 per cent on business.

In total, those visitors spend more than €810 million on their trips, a rise of 29 per cent on the same time last year.

09.56 - ECB will be ‘agile’ in deciding next steps, says Lane

The European Central Bank is ready to respond to any surprises as it decides on its next policy steps amid uncertainty in the economy, Philip Lane said.

“The central bank will be agile,” the chief economist said in an ECB podcast recorded on June 18 and published Thursday.

“We will be responding to information that comes in for every meeting.

“If there’s upside surprises, clearly we’re going to do less,” he said. “We’re ready if there are downside surprises where we can move more quickly.”

09.36 - Government stake in AIB reduced to 25.5 %

The Irish state has reduced its stake in AIB to 25.5 per cent.

The government sold 5 per cent of its shares via placing to institutional investors.

Shares were sold at €4.90 each. As a result, the gross proceeds from the sale of the Placing Shares will be €592.9 million. For more, read Liam Coates’ report.

09.35 - Insolvencies reach six-year high

Corporate insolvencies have risen to a six-year high, with two major financial services firms placing the volume of business failures in the first half of this year in excess of 400.

Two separate studies by Deloitte and PwC show that insolvencies rose 25 per cent in the first six months of 2024 compared with the same period in 2023.

What’s driving the business failures and which firms are most vulnerable? Sarah McGuinness and Emma Hanrahan have the story.

09.25 - Halfords profits tumble

Car parts to bicycle retailer Halfords has revealed slumping annual profits and warned trading remains under pressure amid falling demand for bikes.

The group reported an 18.3 per cent drop in underlying pre-tax profits to £36.1 million for the year to March 29, which includes its tyre supply chain business, which it has offloaded as part of an outsourcing deal.

On a statutory basis, pre-tax profits tumbled 45 per cent to £19.9 million.

09.20 - Australian PM under fire over Assange welcome

The Australian Prime Minister has been accused of potentially undermining ties with key ally, the US, after he welcomed Julian Assange home with a personal phone call, according to Bloomberg reports.

Assange spoke to Anthony Albanese shortly after his plane touched down in Canberra on Wednesday night, the prime minister announced at a press conference. During the call, Assange told Albanese that he had “saved his life,” according to his wife Stella.

But on Thursday morning, Australia’s centre-right opposition Liberal Party accused Albanese of risking US relations by calling Assange, with Shadow Foreign Affairs Minister Simon Birmingham saying it was wrong for him to be treated like a “homecoming hero.”

08.50 - Aer Lingus and Ialpa back in talks

Aer Lingus and the Irish Air Line Pilots' Association (Ialpa) are back in talks on Thursday in a bid to resolve their ongoing pay row.

Pilots began an indefinite work-to-rule yesterday and are planning to engage in an eight-hour strike on Saturday - which will impact 15,000 customers on its short-haul service.

The carrier has cancelled 270 flights because of the industrial action, affecting the travel plans of thousands of passengers.

The airline extended a fresh invite to talks to pilots yesterday and the two sides will meet this morning. However, there is little hope that a resolution will be reached.

08.38 - Smurfit Kappa will cease to trade next week to pave way for Smurfit WestRock

Smurfit Kappa will see its final day of trading on the Irish stock exchange next week, after securing all of the regulatory clearances necessary to complete its $20 billion tie-up with US competitor WestRock.

As reported by RTÉ, the paper packaging giant now expects its shares to have their final day of trading on Euronext Dublin on July 2 and they will be delisted on the following Monday, July 8.

Smurfit Kappa said its shares will have their final day of trade on the London Stock Exchange on July 5, while the shares will be delisted in London on July 8.

The shares in the new combined firm Smurfit WestRock - which will remain domiciled in Ireland - will start trading on Wall Street and in London on July 8.