9 am - Good morning from a busy Business Post newsroom. What a week it has been. Daniel McConnell here with your look at the stories making the headlines across the world.
Ireland will ‘resist’ EU trade tax on US tech firms, says Taoiseach
Ireland would oppose a European Union tax on US technology companies in any escalation of a trade war between the union and the United States, Taoiseach Micheál Martin has told the Irish Times.
Asked about a warning from European Commission president Ursula von der Leyen on Friday that the EU could hit the big tech firms such as Meta, Google and Facebook with a special tax – “a levy on the advertising revenues of digital services” – as part of “retaliatory measures” if trade negotiations failed, Mr Martin responded: “We would resist that.”
He added that it would cause damage to “a significant sector” in the State.
Martin suggested that the commission was signalling to Washington that it had a “bazooka” at its disposal in the shape of special powers to take action against US firms.
Elon Musk’s X records Irish pre-tax loss of €753m in 2022
Accounts for the Irish operation of Elon Musk’s social media giant X show it recorded pretax losses of €753.47 million in 2022, the Irish Times reports.
Twitter, which became the subject of an Irish data protection investigation on Friday relating to its use of artificial intelligence, established its European headquarter in Ireland in 2011.
Accounts filed on Friday, by Twitter International UC, show revenues increased by 3 per cent from €1.45 billion to €1.49 billion that year.
Its pretax losses of €753.47 million are a 14.5 per cent increase on the €657.8 million recorded for 2021.
Cork's Cognate Health sold to UK firm for €9m
Occupational health firm Cognate Health has been acquired by UK firm Optima Health in a deal worth €9m, the Irish Examiner is reporting.
The Sheffield-based health software provider said the sale price was split into a €7m instalment upon completion, followed by an earn-out consideration of up to €2m.
Cognate is led by directors Professor John Gallagher and Noel Creedon. Headquartered in Cork city with approximately 60 staff, the company provides occupational health services to companies including pre-employment medicals, health assessments and on-site health services.
In the 12 months ended 31 December 2024, Cognate generated audited revenue of €7.37m, a profit before taxation of €0.86m and had net assets of €1.28m.
US dollar’s haven status under threat, fund managers warn
The US dollar’s status as a haven for global capital could come under threat from erratic policymaking and rising trade barriers, fund managers have warned, the Financial Times reports.
On Friday the currency fell to a three-year low against the euro, extending a slide that started last week after President Donald Trump announced steep “reciprocal” tariffs on US trading partners.
The moves triggered alarm among investors, who warned of a “tectonic shift” for the global economy if the dollar could no longer be relied upon to provide a refuge during periods of market volatility. “There is [now] a very good case for the end of American dollar exceptionalism,” said Bob Michele, chief investment officer of JPMorgan Asset Management, with $3.6tn under management.
European travellers cancel US visits as Trump’s policies threaten tourism
The number of European travellers visiting the US has fallen sharply as political and economic tension and fears of a hostile border under President Donald Trump threaten the world’s most lucrative air routes, the Financial Times reports.
“Bad buzz”
Visitors from western Europe who stayed at least one night in the US fell by 17 per cent in March from a year ago, according to the International Trade Administration. Travel from some countries — including Ireland, Norway and Germany — fell by more than 20 per cent, an FT analysis of ITA data showed. The trend poses a threat to the US tourism industry, which accounts for 2.5 per cent of the country’s GDP.
Some airlines and hotel groups have warned of waning demand for transatlantic travel and a “bad buzz” about visiting the US.
The total number of overseas visitors travelling to the US dropped by 12 per cent year-on-year in March, the steepest decline since March 2021 when the travel sector was reeling from pandemic restrictions, according to the ITA data.
Thousands of ‘mortgage prisoners’ to get first rate cut since ECB started reducing last summer
A firm that manages thousands of mortgages on behalf of vulture funds has told some of its customers they are to finally get an interest rate cut, the Irish Independent reports.
It is the first time Mars Capital reduced its rates since the European Central Bank (ECB) started cutting rates last summer. There have been six ECB reductions since then.
Mars manages around 14,000 mortgages on behalf of vulture funds.
Many of the mortgages that Mars services are distressed and are on interest rates close to 8pc.
Average rate decreases of 0.89 percentage points will now apply to the mortgage holders whose loans are managed by Mars Capital from June.
US may already be in recession, warns BlackRock
The head of the world’s largest asset manager has warned the US may already be in recession amid Donald Trump’s escalating trade war with China, the Daily Telegraph is reporting.
BlackRock boss Larry Fink warned economies faced a slowdown until there was more certainty, hours after China announced it was ramping up tariffs on American goods to 125pc.
Financial markets have ended the week in turmoil with the dollar falling. US borrowing costs have also risen to their highest level since February as investors sold off debt over fears of a financial crisis.
“I think we’re very close, if not in, a recession now,” Fink told CNBC.
“I think you’re going to see, across the board, just a slowdown until there’s more certainty.