Here is the Minister for Finance’s speech to the Daíl today:
This wordle shows what Budget 2013 was all about.
The Business Department of St. Gerald’s College, Castlebar, Co. Mayo, Ireland.
The following is an article from the Sunday Business Post that explains what these are.
What is a bond?
A bond is a unit of debt. The bonds we’re all talking about these days are sovereign bonds, or units of government debt. But companies sell them too.
It’s just a contract by which an investor agrees to loan money to a company or government in exchange for a predetermined interest rate and generally for a predetermined period of time (two years, five years, ten years).
Why is it bad when bonds rise?
When we say a bond has risen, we mean the yield – or interest rate – on that bond has risen. Effectively yields and prices move in the opposite direction. A rising bond yield is a falling bond price.
As yields rise, it indicates investors won’t buy that country’s debt unless they get a better return. The higher the level of risk they perceive to their investment , the higher the interest rate which investors demand.
Right now investors fear that if they lend to Italy they may eventually not get all their money back – so they are demanding a higher interest rate to compensate for this perceived risk.
Right. And seven per cent is a high yield is it?
Yes it’s very high, particularly when a German bond is yielding two per cent, which means investors want a five per cent premium from Italy (this is an enormous gap in sovereign debt terms).When yields in Ireland and Portugal hit that level, it was time for a bailout.
OK, so why doesn’t Italy just stop selling bonds for a while until it all blows over?
It might have to, but then it has to worry about how to pay its bills. It needs to repay some maturing bonds later this year and has to raise a hefty €300 billion in 2012.The EU/IMF could offer funds to Italy – but they probably do not have enough in the kitty to bail Italy out for a period of years, as they have done with Ireland, Greece and Portugal.
The full article is available here.
By Micheal Lavelle
On 7th of November, local entrepreneur Aaron Mc Mahon came to visit our Leaving Certificate Business class to tell us about his business Rua. Here is my review of how the visit went.
Aaron’s Mother set the business up 16 years ago and originally named it Café Rouge. Once Aaron and his sister took over they decided to change the name to Rua.
Aaron told us that dedication and hard work is essential to be a successful entrepreneur. He presented us with 12 essential points from his past experience which he found essential to help him succeed. The point I found most interesting and important was “that the customer is king”. Without customers the business will not function and ultimately fail. I found Aaron’s visit very helpful for helping me with my Leaving Cert Business and future predicaments.
Here is a short presentation about the Balance Sheet of a business or club.
You should also listen to the following podcast about a UK company (manufacturer of rowing equipment) preparing their Balance Sheet at the end of their financial year.
Take a look at Manchester United’s Balance Sheet from 2004. The Balance Sheet is a PDF file.
Our entries for this year’s Green Dragon Challenge are now preparing for their “pitch” or presentation in Sligo on March 2nd.
So, what makes a good business pitch? The following video shows why Steve Jobs of Apple is one of the best at doing a presentation.
Here is an example of how your hobby could make you some money and could turn into a full-time business.
You can borrow these books and other magazines, books and DVD’s in the Business Library by calling into EXT2 or by completing the online booking form here.
While we all read about the high level of debt in the club, it’s not all bad news:
However, all is not as it seems:
So, do you think Manchester United could end up like Liverpool?
Do you think it will have to sell more players in order to help its financial position?