Liams Last Post : The greeks again...

Good Afternoon ,

 

 And so to no major surprise both the ECB and the Bank of England held rates unchanged. Markets to day continued to react to the growing unease about Greece and the increasing scepticism that the rescue plan which was announced in March wont work.  Two year Greek bond yields climbed to a massive 7.3% compared to Ireland and Portuguese Two year paper that was yielding the same at 1.67% and UK at 1.16% with Germany setting the standatrd yielding 0.89%

 

ECB chairman Mr Trichet has also said that the ECB will continue to accept securities with a minimum BBB- (or equivalent) rating "beyond the end of 2010″ (25 March), rather than reverting, as it had previously signalled, back to the 'standard' procedure of a minimum A- rating from at least one rating agency.

 

We are meeting bank of Ireland management shortly which should be a very interesting meeting in the light of recent events and to try and get a handle on the mechanics of their capital raising plans from here.

 

At the close Ireland had clawed bank the earlier losses to finish in line with yesterday with some positive performances from AIB which turned around late in the day and Irish life  and the construction stocks though CRH closed -0.6% on the day. 

 

Ryanair also rallied in the afternoon and Aer Lingus which had been up 3.3% at one stage closed down -1.3%

 

 

The biggest mover was Glanbia on the back of a story in the Independent newspaper about the co-op paying potentially a lot more than previous market expectations, What a win win deal thus far for both the co-op and the Plc without the terms finally being announced. The downside though that the market is overlooking is that the price paid will largely dictate the scale of the disposal of Glanbia shares into the market but the market is happy to start ascribing a decent rating now to the residual businesses even before the Glanbia investor day next week. 

 

Have a good evening.   

 

Liam

  

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

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