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Euro zone activity weak but stable

Business activity in the euro zone unexpectedly stabilised at weak levels in August, while the plunge in oil prices eased inflationary pressure, bolstering the view that interest rate cuts will stay on hold for now.

The August Flash Euro zone PMI data from RBS/Markit was better than expected, although it pointed to a deterioration in business and employment and depicts an economy in clear decline.

Separate figures for the 15-member bloc's two largest economies, Germany and France, were not as good.

Economists said whether or not the euro zone economy will contract in the current quarter following a 0.2 per cent shrinkage in Q2 - the first contraction since monetary union - is on a knife edge. "There is a good chance of a recession," said Dominic Bryant, economist at BNP Paribas.

Banks urged take long view on cuts

Banks need to take "a considered approach" to cutting costs amid the downturn so they can react when growth returns to the market, according to the head of financial services at consultancy firm Accenture Ireland.

Alastair Blair said banks should cut overheads in the context of how they would like their business to look in three-to-five years' time.

"Banks that slash and burn might do well in the short term but when they look to the long term they might be very weak," he said.

Mr Blair said that every one of his clients was looking to cut costs.

AIB internet payments up 20%

AIB said it recorded 1.5 million internet payments by customers in July, an increase of 20 per cent on the same month last year. More than five million customers logged on to its service last month - an average of 170,000 a day. This was an increase of more than 25 per cent on last year.

The bank said the increase in online payments mirrored a decline in personal cheques written. AIB said there was a 40 per cent increase in international payments, a 28 per cent increase in domestic transfers, and a 20 per cent increase in mobile phone top-ups.

SIG's Irish sales decline 19%

British building materials group SIG reported a strong increase in sales across all its markets with the exception of Ireland, where it said construction and building activity had declined significantly.

The company, which owns Capco in Ireland, said overall sales in the UK and Ireland increased by 17 per cent to £847 million during the first six months of the year compared with 2007.

But it reported that sales in Ireland had declined by 19 per cent.

Total sales in mainland Europe increased by 70 per cent to £643 million, reflecting the benefit of strengthening European currencies, it said.

Dolford Ltd goes into liquidation

A company in which golfer Christy O'Connor Jnr is a director has gone into voluntary liquidation.

At a meeting in May, a resolution was passed recommending the voluntary winding up of the company and the appointment of Brian Gannon of Gannon Kirwan Co as liquidator.

A final meeting of Dolford Ltd will be held in Dún Laoghaire on Thursday 18th September.

July boost for UK retail sales

British retail sales unexpectedly jumped in July even as prices rose at their fastest rate in a decade.

Sales rose by 0.8 per cent last month, wrongfooting analysts who had forecast a 0.3 per cent decline. That left sales 2.1 per cent higher for the year, the lowest rate since February 2006.

Sales growth was broadly based with household goods, clothing and footwear strong.