Liams Last Post : Greens back NAMA and Govt, Paper strong , Sterling weak and Ryanair...

Good Afternoon ,

 

A very quiet day and a particularly mute response from the markets to the news that the Green Party had agreed to a new programme for Government and also the Greens voted to defeat the dissident proposal to reject NAMA.

 

It is a surprise though that there was really no major follow through rally. The Banks were really a disappointment today. I suppose the fund raisings that Merrion had also pointed to loom large in the background and fresh money may wait for its opportunity at that stage.

 

I suppose if you lived in Ireland , the newspapers were utterly depressing reading as the Greens pushed for property taxes and to lift the ceiling on PRSI which will in they come to pass see a significant increase in the tax burden on the private sector .

 

In the paper sector , RISI's latest monthly edition of Paper Packaging Monitor Europe notes it previously actually underestimated the extent of the price increases on recycled containerboard for September. It attributes falling producer inventory levels to: huge amounts of production downtime, permanent capacity closures in H1 and a rebound in exports from Western Europe due to attractive export markets. It still believes that the upturn in demand during Q3 was essentially driven by inventory rebuilding in the face of increasing but still weak true demand for containerboard.

 

Ulster Bank today released its Construction Purchasing Managers Index (PMI) for the month of September. Index readings above 50 indicate an increase in activity on the previous month, while readings below 50 indicate a decrease in activity. The greater the divergence from 50, the greater the rate of change. The overall index showed a reading of 34.2 in September, worse than the 38.8 seen in August, and still showing marked contraction. Housing activity showed a reading of 33.8 (34.6 in August), commercial showed a reading of 34.9 (39.8 in August) and civil engineering showed a reading of 31.3 (35.5 in August).

With very little news flow, the continued decline of sterling and the dollar against the Euro is a major concern and is holding back all sterling exposed stocks.

So tonight , if you are housebound…. BBC1  8:30 Panorama looks at Ryanair. Vivian White investigates the reasons why the ultimate 'no frills' airline has gained a reputation as the brand Britain loves to hate but can't stop using.

 

Passengers, suppliers and insiders contribute, and chief executive Michael O'Leary doorsteps the programme makers in his own unique style.

 

It will make you smile if nothing else….

 

Have a good evening

 

Liam

 

   

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

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