Live News: Heat pump sentiment poor; Iseq Update; Enet signs five-year deal with National Broadband Ireland

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

17.05 – Nearly 70% of households do not plan to install heat pumps despite government targets

Nearly 70 per cent of Irish households have no plans to install a heat pump citing high costs and disruptions during installation, a new survey has found.

This figure rises to 75 per cent for households in rural areas, the survey conducted by Fuels for Ireland and The Alliance for Zero Carbon Heating found.

Of the households who do plan to install a heat pump, only 10 per cent are considering doing so in the next year, and only 14 per cent in the next five years.

The government has a target to install 400,000 heat pumps by 2030 in existing homes with the objective of lowering Ireland’s home energy emissions. As of April, fewer than 20,000 heat pumps have been installed – representing a meagre 4 per cent of the 2030 target.

Vish Gain has the full story here.

16.45 – Irish Markets Update

The Iseq All Share closed in the red, falling 0.46 per cent (-45.54) to 9,921.70 on Monday evening.

This could be attributed to main fallers such as Datalex and AIB Group. The airline retail solution company was the bottom performer on the market as it fell by 6.82 per cent to €0.41 per share. Meanwhile, the banking group dropped 3.59 per cent to €5.37 a share at time of market close.

The top performer on the market was Kerry Group, with the food company rising 1.85 per cent to €90.60 per share. Kerry Group was closely followed by Irish Continental Group, a shipping and transport company which increased 1.83 per cent to €5.56 a share at the end of trade.

16.25 Stocks climb with US economy on ‘sound footing’

US equities climbed and Treasuries fell on Monday after data showing US business activity is robust even as growth moderates, further stoking confidence the world’s largest economy can nail a soft landing.

The S&P 500 edged 0.4 per cent higher, trading in a narrow range after manufacturing data and comments from Fed officials on Monday. Among individual movers, shares of Intel gained 3.3 per cent after Apollo Global Management Inc. was said to have offered to make a multibillion-dollar investment in the chipmaker. Constellation Energy Corp. led power companies higher after its deal with Microsoft Corp. was well received by analysts.

US business activity expanded at a slightly slower pace in early September, according to data released Monday, while expectations deteriorated and a gauge of prices received climbed to a six-month high. Investors are looking for fresh signs on the scope for further easing after the Federal Reserve’s half a percentage point interest-rate cut last week.

16.00 – Enet signs five-year deal with National Broadband Ireland

Open access telecoms provider Enet has signed a five-year deal with National Broadband Ireland (NBI) to provide “backhaul” to 32 regional and rural “point of presence” (PoPs) around the country.

The connections will feature multiple 10GB links that aim to speed up the fibre-to-the-home network for the firm tasked with the National Broadband Plan.

Fionn Thompson has the full story.

15.45 – M&S shares soar to nine-year high

Marks & Spencer Group Plc’s soaring shares are set to hit highs not seen in almost nine years as the UK retailer wins more customers for its food and clothing, according to analysts at UBS Group AG.

Yashraj Rajani and Sreedhar Mahamkali of UBS set a 12-month price target for M&S shares of 435 pence, the highest among 18 analysts tracked by Bloomberg who cover the company. It’s a level the stock hasn’t traded at since December 2015.

Bloomberg has more.

15.30 – Eir raises email prices to €13 per month

Eir is rising the price of its Eircom.net email service by 30pc to €13 per month. It’s the second major price increase in three years for the service that was free for almost 20 years before 2020.

The Irish Independent has the full story.

15.15 – Everton FC agrees to takeover from AS Roma owner Friedkin

US billionaire Dan Friedkin has agreed a takeover of Everton FC, the Premier League team that has long struggled to find a buyer.

Friedkin and Everton owner Farhad Moshiri came to an agreement over the weekend, according to people familiar with the matter, bringing to an end to months of uncertainty at the Liverpool-based football team.

Read more here.

15.00 – EU challenges China dairy probe at WTO as trade tensions intensify

The European Commission has ratcheted up the pressure in its ongoing electric car dispute with China by challenging Beijing’s recent EU dairy probe at the World Trade Organization (WTO).

It is the first step in what could lead to a fully-fledged WTO investigation – and the first time the EU has intervened in a trade dispute at such an early stage.

Read more from Sarah Collins on the escalating feud here.

14.45 – NYSE up on Monday morning

The New York Stock Exchange also crept up to 19,411.28, 0.19 per cent higher than close of business last week.

14.35 – Nasdaq opens in the green

In the US, Nasdaq Composite opened in the green on Monday morning, reaching 17,995.87 in early trading – up 0.26 per cent from Friday’s finish of 17,948.32.

14.25 – 50 pub closures per month in England and Wales in first half of year

The first half of the year saw the closure of 50 pubs per month in England and Wales, according to new figures.

An analysis by Altus, the real estate intelligence company, found that there were 305 permanent closures in the first six month of the year, as the total number of pubs in England and Wales fell to 39,096 by the end of June — including vacant and for let pubs, meaning that the number still serving is even lower.

Read more on the Guardian, including a warning about the impact of removing pandemic-era business rates relief in the UK.

14.10 – Leinster Rugby to fly from Belfast instead of Dublin for European fixtures due to passenger cap, says Ryanair

Days after the Business Post reported that the Dublin airport passenger cap had spooked UEFA about the prospect of Ireland joint-hosting Euro 2028, the Ryanair-Ryan row over the issue has expanded from soccer to rugby.

The budget airline has said that it will fly the Leinster Rugby team to its European fixtures from Belfast instead of Dublin this year.

The away fixtures include Leinster’s January visit to La Rochelle, as well as away matches in Bristol and Cardiff.

Read the rest on the Irish Times.

13.55 – Over €2.5b paid out in compensation by HSE over last decade

The HSE has paid out €2.5 billion in compensation claims over the last 10 years, new figures released to Aontú leader Peadar Tóibín show.

Some €2.5 billion has been paid out by the HSE in compensation since 2014, with the last three year’s alone accounting for €1 billion.

It comes following the publication of a new report on the rising cost of health claims last week by Stephen Donnelly, the minister for health, and Rhona Mahony, the consultant obstetrician, which showed outstanding health legal liabilities have grown to more than €5 billion, and could grow to “multiples of that” in the years ahead.

Our policy editor Daniel Murray has the full story.

13.40 – Volkswagen expecting union concessions in crunch talks

Volkswagen expects labour unions to make proposals on how to cut costs and close a gap with competitors, two days before talks over plant closures and new wage deals.

Volkswagen, the leading carmaker in Europe, cancelled long-standing job security schemes at the beginning of this month, as it considered plant closures in its home market for the first time — prompting strong resistance from unions.

Talks are slated to begin on Wednesday, a full month ahead of schedule. Get the full story on Reuters before then.

13.25 – Bonkers revenue drops by nearly €3m in 2023 as site reports net loss

Bonkers.ie saw its turnover drop by nearly €3 million to €3.87 million in 2023 as company directors blame market conditions in the energy and mortgage sectors.

The Irish price comparisons website posted a net loss of €140,577 for the 2023 financial year. Revenue in 2022 was €6,570,288 – a rise of 35 per cent over the previous year – while it made a nearly €2 million profit.

Founded by chief executive David Kerr in 2010, Bonkers allows consumers to compare the cost of services from different providers, including electricity, gas, broadband, mortgages and personal loans.

Vish Gain took a look through their full accounts for us.

13.10 – Gas demand drops 10 per cent in windy August

Gas demand in August was 10 per cent lower than in July, and 7 per cent below August 2023, as August experienced particularly strong winds.

In spite of the drop, gas remained the largest single source of Ireland’s electricity generation, according to new figures from Gas Networks Ireland.

Ireland’s offices saw electricity demand jump 21 per cent in August compared to the year before.

12.55 – NGOs call for end to universal energy credits

Eleven non-government organisations (NGOs) have urged the government not to provide further universal energy credits in the upcoming budget.

Targeted measures should be offered instead, the groups said, to provide households facing energy poverty with immediate support and to help reduce dependence on fossil fuels.

Clare O’Connor, the energy policy officer for Friends of the Earth Ireland, said that energy credits were a short-term solution offering “temporary relief” without addressing the root causes of energy poverty.

Read more on RTÉ.

12.40 – Ozempic and Wegovy sales set to surpass Novo’s 30-year $68 billion research budget

Cumulative sales of Ozempic and Wegovy are set to surpass Novo Nordisk’s entire research budget for the past three decades, undermining an oft-cited argument for their high prices.

The Danish company have taken in nearly $50 billion from the diabetes and obesity drugs before the second quarter, and are on track to clear $65 billion by the end of this year – eclipsing the $68 billion that Novo will have spent on R&D since the mid-90s when adjusting for inflation, according to Bloomberg.

On Tuesday, the company’s chief executive Lars Fruergaard Jorgensen is set to be grilled at a hearing led by Bernie Sanders, as Novo comes under increased pressure to make its drugs more affordable.

See Bloomberg for more.

12.27 – White House touts $1 billion EV fund for small suppliers

Monroe Capital, the Chicago-based investment firm led by chief executive Theodore L. Koenig, is set to launch a fresh loan fund of up to $1 billion for smaller car suppliers, as the industry shifts from petrol and diesel to EVs.

The US government said the fund would facilitate access to lower cost capital for SME manufacturers to “refinance, grow, and diversify their businesses”.

Over 250,000 people in the US work for small-to-medium car suppliers, the White House noted.

Read more on Reuters here.

12.12 – Former CIÉ employees urge first pension increase in 16 years

Over 6,000 former employees of Córas Iompair Éireann (CIÉ) have urged the company to increase their pensions payments 16 years after a crisis-era freeze.

Just over 2,000 of them have gone further, demanding that Jack Chambers use the upcoming budget to address an anomaly preventing them from accessing the state pension or associated medical benefits.

While pay increases for staff, frozen alongside pensions in 2008, were restored in 2016, former employees have said that the payments received by almost 1,000 pensioners are below the living wage.

Read more on RTÉ here.

11.57 – Tesco’s Aldi price-matched products not equivalent, report finds

Dozens of food products marketed by Tesco in the UK as price-matching their Aldi equivalents contain lower proportions of their key ingredients, according to a new report.

An investigation by BBC Panorama found that out of 122 Tesco products surveyed, 38 contained at least five percent less of the main ingredient than the Aldi items they had been matched to.

Tesco chicken nuggets contained 20 percentage points less chicken than the Aldi equivalent – with wheat flour making up much of the difference – while diluted juice used 14 percentage points less fruit from concentrate.

The Guardian has the full story.

11.45 – Budget uncertainty weighing on UK economy, survey finds

Uncertainty before Labour’s first budget next month is weighing on the UK economy, according to a survey of private businesses.

The data firm S&P Global said UK private sector activity growth slowed for the second consecutive month in September, affecting companies in the services and manufacturing industries.

Some companies reported that clients are taking a “wait-and-see approach” to decision-making before the autumn budget, which is hitting investment plans.

Read more on the lead-up to the UK budget in the Guardian.

11.30 – KKR raises $4.6 billion for North American mid-market deals debut

KKR, the global investment firm, has raised $4.6 billion (€4.14 billion) for its debut fund focused on mid-sized deals in North America despite a difficult fundraising environment as high interest rates dampened investors’ appetite for debt-driven buyouts.

The New York-based firm, which had $601 billion in assets under management as of the end of June, has been attempting to raise capital at a difficult time for fundraising for large buyout firms.

KKR is also planning to raise $20 billion for its latest flagship North America private equity fund.

Reuters has all the details.

11.15 – Eurozone business activity unexpectedly contracts this month

Business activity in the eurozone contracted sharply and unexpectedly this month as the bloc’s dominant services industry flatlined while a downturn in manufacturing accelerated, a survey has shown.

The downturn appeared broad-based with Germany, Europe’s largest economy, seeing its decline deepen while France – the currency union’s second biggest – returned to contraction following August’s Olympics boost.

HCOB’s preliminary composite euro zone Purchasing Managers’ Index (PMI), compiled by S&P Global, sank to 48.9 this month from August’s 51, below the 50-mark that separates growth from contraction for the first time since February.

The Irish Times has more.

11.00 – Wizz Air has more headaches than just Ryanair: traders are betting against it

With the outlook for travel weakening as consumers pull back on spending, short sellers are betting that one budget airline will fare worse than its European peers.

Shares out on loan, an indication of short interest, represent 13 per cent of Wizz Air Holdings’ stock available for trading, according to the latest data from S&P Global Market Intelligence. That compares to less than 1 per cent for rivals EasyJet and Ryanair.

Skeptics point to plenty of reasons for the bearish bets: Wizz Air is loaded up with a lot more debt than its competitors, it’s been hit by an engine issue in Airbus planes it operates and the Budapest-based carrier flies mainly in and from eastern Europe, putting it close to war-torn Ukraine.

The stock, which trades in London, has already fallen 41 this year to 1,311 pence, weighed down by a profit warning in August, and some analysts say it very well could stumble again, given the fare competition among carriers.

Read more here.

10.45 – EU to lend Ukraine €35 billion backed by profits on frozen Russian assets

The EU is to lend Ukraine up to €35 billion as part of a global deal to help Kyiv defend itself against Russia and reconstruct its economy.

The loan is backed by billions of euros in profits from frozen Russian assets, most of which are held by Euroclear in Belgium, with the EU budget acting as a backstop should the profits not be as high as anticipated, or if they are unfrozen due to the war ending.

Ukraine should not have to use any of its own money to repay the loan, EU officials insisted.

Read more here from our Europe correspondent Sarah Collins.

10.30 – Rupert Murdoch makes third Rightmove offer

Rupert Murdoch has launched his third attempt to buy Rightmove, the London-listed UK property website.

REA, the Murdoch-owned Australian group of property websites, announced on Monday it had upped its offer to £6.1 billion, after earlier efforts had been rejected.

One offer, evaluating the company at £5.6 billion, was rebuffed as undervaluing the business.

Rightmove led the standout performers on the FTSE 100 on Monday morning, its share price up 2.22 per cent to 689.40p.

Read Sky News for more.

10.15 – Precision Sports Technology wins KMPG Irish tech innovator award

Precision Sports Technology, the Galway sports tech firm, has won KPMG’s Global Tech Innovator Ireland final.

The start-up, set up in 2021 by Emma Meehan, saw off competition from the likes of Dublin-based Bounce Insights, Legitify and Cork retail supply-sourcing firm Kwayga.

Meehan and Precision Sports will represent Ireland at the global final in November.

10.00 – UK investment funds to pump hundreds of millions into US commercial property

Legal & General and Schroders, the British investment managers, are to invest hundreds of millions in US commercial property, while largely steering clear of the beleaguered office sector, the companies told Reuters.

The fund managers, which oversee assets worth over £1.9 trillion pounds between them, said they had separately been building up their US real estate teams, anticipating that property prices would be boosted by by falling interest rates.

Reuters has the full story.

09.45 – AI poised to automate over 80 per cent of tasks in nearly one third of all jobs

Nearly one third of all jobs will be fundamentally transformed by generative artificial intelligence (GenAI), according to a new study by global management consulting company, Sia Partners.

The study said more than 80 per cent of tasks in these roles are primed for automation, driven by the rapid expansion of Large Language Models (LLMs) and GenAI technologies.

Emma Hanrahan has more.

09.30 – Australian supermarket giants in false discount probe

Two of Australia’s biggest supermarket chains have been accused of falsely claiming to have permanently dropped prices on hundreds of items by the country’s consumer watchdog.

According to the Australian Competition and Consumer Commission (ACCC), Coles and Woolworths, which account for two thirds of the country’s market, broke consumer law by temporarily raising prices before lowering them to either the same or higher than the original cost.

Coles said it would defend itself against the allegations, while Woolworths said it would review the claims.

Read more on the increased scrutiny on the grocery giants over alleged price gouging and anti-competitive practices here on the BBC.

09.15 – Four in ten of those set for auto-enrolment have never heard of scheme

Huge numbers of adults who are without a pension they have never heard of the auto-enrolment scheme, according to a new survey.

Although the landmark upheaval of Ireland’s pension provision for those without a retirement plan is due to be rolled out next year, more than four in ten (42 per cent) adults set to be enrolled aren’t familiar with the regime.

The survey, commissioned by Gallagher, the insurance broker, found that while 86 per cent of pension holders had some awareness of auto-enrolment, 58 per cent of these said that they did not know much about it.

Vish Gain has the full story.

09.00 – Commuter belt property prices heat up

A major lack of housing supply in Dublin has reignited the commuter-belt market, with five-figure increases in average house prices recorded in many towns over the past three months, new figures show.

The price of an average semi-detached home rose by up to €20,000 in some regional towns in the third quarter of this year.

Houses outside of Dublin led the major price jumps recorded by the REA Irish Independent Average House Price Index for the quarter, as buyers fought over Ireland’s dwindling affordable family home stock.

The Irish Independent has the full story.

08.45 – Employment up in funds sector, despite threat of regulation and talent shortage

The Irish funds sector has seen a sharp rise in employment in the past three years – but regulation and the availability of talent are the two main barriers to industry growth, according to a new report.

Indecon, the economic consultancy, published the survey on behalf of industry group Irish Funds mere weeks before the final Department of Finance report into the sector is expected to highlight tax disincentives to small-time investors in Ireland.

Pat Lardner, the chief executive of Irish Funds, told the Business Post that while the report highlighted the “green lights” of growth in Ireland’s funds sector, greater collaboration with policymakers was “essential” to maintain Ireland’s competitiveness.

Read more from Kathleen Gallagher here.

08.30 – FTSE 100 steady, Dax slips

Across the Irish sea, the FTSE 100 inched up in London, rising 0.03 per cent in early trading to 8,232.20.

Rightmove, the UK property website, rose 2.08 per cent to 688.40p on Monday morning.

Luxury retailer Burberry’s share slide continued, while B&M, the Belgian variety retailer with over 700 UK outlets, tumbled 3.83 per cent to 404.80p.

In Frankfurt, the Dax slipped 0.06 per cent to 18,708.78, with Porche and Mercedez in the red to start the week, and Siemens recording a rare fall on recent form.

08.25 – Iseq opens in red

The Iseq All Share opened in the red on Monday, falling 0.51 per cent to start the week at 9,916.39.

Ryanair led the early losses, dropping 0.64 per cent to €16.415. Glenveagh, meanwhile, registered a strong climb of 1.04 per cent to €1.548.

08.20 – Dublin passenger cap can be lifted to 40 million through planning – Fingal chief

Dublin Airport’s passenger cap can be lifted to 40 million, subject to planning conditions, according to Fingal’s county manager.

In a memo to local councillors, AnnMarie Farrelly, the Fingal local authority chief, said the “principle of development is accepted, subject to meeting other planning requirements”.

Farrelly insisted that the local authority had the ability to deal with the complex planning issue, following criticism of its role in capping growth at the airport.

The Irish Independent has the full story.

08.10 – ‘Significant’ €2 gap between living and minimum wage

There is a “significant gap” of over €2 between the current living wage of €14.75 and the national minimum wage of €12.70, according to a new report.

Revising the hourly wage required for a full-time worker, without dependents, to afford basic goods and services, the Living Wage Technical Group (LWTG) said it based the calculation on “the real costs faced by employees in Ireland” in the face of changes to income taxes and living costs.

The largest annual cost increases were observed in education (6.6 per cent), housing (6.2 per cent) and car insurance (16.6 per cent), with health costs down 4.8 per cent and household services falling 4 per cent.

Food costs climbed 1.5 per cent, having rocketed 21 per cent the year before, while rent rose by €12.28 up to €210.60 a week.

Vish Gain has the full story.

08.00 – Bank of Ireland casts doubt on housing progress

The rate of progress in housebuilding is “especially uncertain”, amid persistent house price and construction cost inflation, according to Bank of Ireland.

In a report released at the end of last week, the bank noted the “disappointing” 8.6 per cent fall in housing completions in the first half of 2024 compared to the year before.

The drop, despite increased commencements, suggested that the disruption from elevated build cost inflation and energy prices in 2023 was still hindering output, according to the bank.

“For now, we are sticking with our forecast for 41,000 completions in 2025 and 45,000 in 2026,” the report read.

Fionn Thompson takes us through the rest of the report.

07.48 – Apollo lines up multibillion-dollar investment in ailing Intel

Apollo Global Management has offered to make a multibillion-dollar investment in Intel, according to people familiar with the matter, in a move that would be a vote of confidence in the chipmaker’s turnaround strategy.

The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion in Intel, said one of the people, who asked not to be identified discussing confidential information.

Intel executives have been weighing Apollo’s proposal, the people said.

Get the full story here.

07.40 – Dublin edtech firm Exit Entry acquired by non-profit High Resolves Group

Exit Entry, the Dublin edtech firm, has been acquired by the High Resolves Group, the youth engagement non-profit.

The company, founded in 2019 as a spin-out from DCU and led by chief executive Lewize McCauley, connects students with future opportunities, potential employers and third-level institutions.

Following the transaction, the High Resolves Group will explore how Exit Entry’s tools can be leveraged to enhance the effectiveness of AI learning experiences, the company said.

Read the rest from Emma Hanrahan.

07.26 – ESB plotting Irish wind farm move, as UK power station up for sale

ESB has put one of its UK power stations up for sale, as it lines up the purchase of a Co. Galway wind farm, according to reports.

According to the industry publication PeakLoad, the state-owned electricity company intends to sell its 350MW plant in Corby, Nottinghamshire.

The move comes as ESB is in talks to buy the Gusta Gaoithe Wind Farm, which has a corporate power purchase agreement with Amazon.

Fionn Thompson has the full story here.

07.15 – Asian markets up, with lighter trading volumes

Overnight, the main Asian markets were up this morning, with trading volumes light due to a holiday in Japan, analysts at Deutsche Bank noted.

The Hang Seng was up 0.20 per cent to 18,294.49, with more significant gains recorded by the CSI and the Shanghai Composite, up 0.41 per cent to 3,214.33 and 0.43 per cent to 2,748.66 respectively.

In South Korea, the KOSPI turned around a weak start to rise 0.17 per cent to 2,597.74.

07.00 – Good Morning

Good Morning from the Business Post.

Eoin O’Hare here with you for the day. I’ll be keeping you up-to-date with the all the latest news.

We are leading the site this morning with a look at the views of Irish business leaders on the remote working debate. It’s fair to say there are mixed opinions.

Meanwhile, we have revealed Uefa is considering pulling Ireland’s Euro 2028 games over the Dublin Airport passenger cap.

And our markets correspondent Kathleen Gallagher has a look at the current state of the funds industry in the country.