Your business this week: Budget 2019 and construction PMI
Irish inflation, Citigroup results and Euro zone industrial production
Donnacha O'Riordan, executive director at Microelectronic Circuits Centre Ireland (MCCI), reviews an electrochemical sensor chip on screen at the launch of Ireland’s leading semiconductor and microchip industry event, the MCCI Forum 2018 'Realising Big Ambitions', which takes place on October 11th at Tyndall National Institute in Cork.
Indicators: Irish construction PMI (Sept); German industrial production (Aug).
Meetings: IIEA talk on mobilising governments and Businesses to tackle climate change (IIEA, North Great George’s Street, Dublin).
Indicators: Irish consumer confidence (Sept), residential property prices (Aug), new vehicles licensed (Sept); German exports and imports (Aug); US economic optimism (Oct), consumer inflation expectations (Sept).
Events: Budget Day.
It has been some time since a government has had the latitude to surprise anyone with budgetary tax cuts or service provision.
For those who clearly remember the heady days of the Tiger, that is not necessarily a bad thing. But nevertheless, the era of demand-and-surprise budgeting appears a distant memory.
It is a reality likely to be played out on Tuesday when Paschal Donohoe unveils his Government’s vision for how the State should be financed, most probably in the run-up to the next general election.
Despite the much vaunted “recovery”, jobs growth and economic vigour, Ireland remains a country spooked by Brexit, hamstrung by housing, and burnt by the all too recent memory of having no financial security blanket.
When he takes to his feet in the Dáil, Donohoe will in fact have only about €800 million with which to play. While there is an overall budgetary allowance of €3.4 billion, about €2.6 billion of that has already been spoken for. And given the programme for government commitment of a minimum 2:1 ratio of investment to tax cuts, only some €265 million remains available for the latter.
It may be the most important day on the financial calendar, but the relative lack of surprises will be of surprise to no one.
Indicators: UK GDP (Aug), industrial production (Aug), construction output (Aug), manufacturing production (Aug); US core PPI (Sept).
Meetings: ECB non-monetary policy meeting; European Transport Conference (Dublin Castle); Gillen Market Annual Investment Conference (Shelbourne Hotel, Dublin); Women’s Inspire Network on taking business to the next level (Aviva Stadium, Dublin).
Indicators: Irish inflation (Sept); US inflation (Sept).
Meetings: Service Design Global Conference (Convention Centre Dublin); Africa Ireland Economic Forum 2018 (Convention Centre Dublin); Dublin Chamber annual dinner with Paschal Donohoe as guest speaker (Convention Centre Dublin); MCCI (Microelectronics Circuits Centre Ireland) “Realising Big Ambitions” Forum 2018 on semiconductor industry (Tyndall National Institute, Cork).
The sixth Africa Ireland Economic Forum in Dublin, will focus on the agri-food sector and women in business. In an era of constant reminders about the need for exploring emerging markets, the Department of Foreign Affairs-organised event is pitched at helping Irish businesses get a foothold on the continent as well as nurturing future trade relationships.
A study provided by PricewaterhouseCoopers at the last forum showed Irish investment in African countries focused on a variety of sectors, including agribusiness, financial services, beverages, infrastructure, pharmaceuticals and education.
“I am passionate about building the relationships between Ireland and Africa on a political level in terms of development aid, but more importantly perhaps in the future in terms of building business partnerships,” the Tánaiste and Minister for Foreign Affairs Simon Coveney said ahead of the conference.
“This year we are going to focus on two key areas: agrifood and women in business, both areas I think Ireland has really seen transformational change over the last decade or so in. And we want now to explore the opportunities for Irish businesses in Africa and of course the partnerships that are possible between Ireland and African businesses.”
The last forum, held in 2016, had about 450 participants. Since the launch of Ireland’s Africa Strategy in 2011, the forum has helped promote the new Business Ireland Africa network and showcase the work of African embassies and private sector groups.
Indicators: Euro zone industrial production (Aug); German inflation (Sept); US export and import prices (Sept).