The Irish economy is heading into recession a senior economist has warned, as official measures designed to defeat the Covid-19 outbreak hits the jobs-rich industries of tourism, hospitality, and retail.
Irish business and trade union leaders said they stand ready to work with government in a national effort to face down the Covid-19 crisis, but warn that they need more help to prevent firms from going under.
Irish bank and transport shares most exposed to the potential economic fallout from the coronavirus fell sharply for a second successive session, as an Italian official said it may need to call on the EU to offer leeway on budget targets due to the outbreak.
The Brexit gloom lifted helping boost the shares of Irish banks and property firms, as well as the owner of Paddy Power, as investors bet the risk of a crash-out Brexit had receded for the time being.
The Brexit crisis could be cooled somewhat if the EU and UK were to immediately extend a transit or connectivity accord beyond its expiry date at the end of December, the head of the Irish hauliers business group has said.
Global markets appear to have called time on the dangerous game of hardball US president Donald Trump is playing with China, as a plunge in shares, government bond yields, and the price of oil signalled his trade wars could lead to world recession.
Global shares rose on the belief more central banks will be forced to cut interest rates to shelter the global economy from the trade wars, but crash-out Brexit fears weighed heavily on sterling.
Sterling steadied after initially posting further large losses on UK political fears but shares in Europe and the US were hit as the fallout of the US-China trade war extended to Chinese champion Huawei and the world’s chip makers for mobile phones.
Shares in airlines, including Ryanair and Aer-Lingus-owner IAG, as well as travel giant TUI soared, as the threat of any disruption from Brexit was put off beyond the industry’s most profitable summer season.
Irish shares tapped a surprise early new year buying wave that sent the Iseq Overall index climbing 3%, reflecting huge gains for Bank of Ireland and housebuilder Glenveagh at the end of a week marked by global stock market tremors.