In Short

A round-up of today's other business news in brief

Leading think tanks predict euro-zone economic stagnation

Three economic research institutes have said the euro-zone economy probably shrank for a second consecutive quarter in the period from July to September and have predicted that it will stagnate into next year.

Germany's Ifo, France's Insee and Italy's ISAE cut their joint estimate for euro-zone gross domestic product (GDP) in the third quarter to a contraction of 0.1 per cent from a July prediction of an increase of 0.3 per cent. "Although the impact of the financial crisis remains difficult to assess precisely, the resulting tighter credit access and higher risk aversion are likely to weigh on investment decisions," the think tanks said. "The economic slowdown, worsening credit-access conditions, and the easing of pressure on productive capacity are expected to sustain the decline in equipment investment over the next three quarters," they added. GDP shrank 0.2 per cent in the second quarter and another contraction in the third would mean recession.

The think tanks said they expected stagnation in the euro- zone economy in the fourth quarter and an increase in GDP of 0.1 per cent during the first three months of next year.

"Euro-zone employment growth is expected to lose momentum in the coming quarters, as suggested by the deterioration of hiring prospects in business surveys," they said. "Despite the inflation decline under way since Q2, household purchasing power is not expected to improve over the second semester," they added. "This trend, coupled with consumers' growing concerns over economic prospects as expressed in recent surveys, should weigh on household expenditure." - (Reuters)

Sale of Iralco completed

The sale of Co Westmeath car parts manufacturer Iralco to Athenry-based company CF Tooling was completed yesterday.

Tom Rogers of insolvency firm McStay Luby said the deal secured the jobs of more than 300 people at the Collinstown, Co Westmeath, company.

Iralco produces components for some of Europe's best-known car manufacturers, including Audi, BMW, Ford, Seat, Volvo and Jaguar.

The firm went into liquidation in April due to financial difficulties, however, despite having a large number of orders on its books.

Last August, workers at Iralco voted overwhelmingly in favour of a survival plan that would secure more than 300 jobs. The proposal put forward by conditional new owners CF Tooling was accepted by more than 90 per cent of employees at a general meeting.

Legal dispute adjourned

A dispute between solicitor Ivor Fitzpatrick and property developer Paddy McKillen about the conduct of the affairs of a large property development holding company remains unresolved, the Commercial Court was told yesterday.

The case has been adjourned for one more week in a final bid to secure a settlement.

The case relates to the conduct of the affairs of Canton Caseys Ltd (CCL), with offices at St Stephen's Green, Dublin, and was due to open this week and run for four weeks.

However, talks between the sides continued throughout Tuesday and the case was adjourned to yesterday, when Mr Justice John MacMenamin was told by Michael Cush SC, for Mr Fitzpatrick, that he regretted to say no agreement had been reached.

Counsel said the case had "a troubled history" but "a level of good will" had been achieved.