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Global Markets Mixed as Fed Policy Meeting Looms

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  Published in Business and Finance on Saturday, December 6th 2025 at 8:02 GMT by RTE Online

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The Business – Saturday 6 December 2025: A Rundown of the Week’s Economic Headlines

On Saturday morning, The Business—RTE’s flagship business‑news radio programme—offered listeners a comprehensive recap of the most pressing economic developments that dominated headlines in the week ending 6 December 2025. Hosted by veteran broadcaster Ciarán Ó Conchúir, the show blended live analysis, expert commentary and exclusive interviews to provide an in‑depth snapshot of Ireland’s financial landscape, the wider European economy, and global market trends. Below is a detailed summary of the key stories covered, the context they were placed in, and the implications for Irish businesses and consumers alike.

1. Global Markets: A Mixed Weekend, A Tense Week Ahead

The opening segment began with a brisk recap of how global equity markets fared over the weekend. The S&P 500 and FTSE 100 finished flat after a slight dip on Thursday, while the Nikkei and Hang Seng climbed on stronger-than‑expected earnings reports from tech giants. Ciarán highlighted that, despite a calm start to the week, traders are braced for the Federal Reserve’s upcoming policy meeting on Thursday, where any signals on tightening rates could reverberate across international bonds.

The commentary was anchored by a live call‑in from the European Central Bank (ECB) analyst, who pointed out that the ECB is still in the “leaning‑toward‑acquisition” phase, meaning its monetary policy stance remains accommodative to support the Eurozone’s fragile recovery. The segment finished with a quick note on commodity prices: oil edged up 1.2 % amid geopolitical tensions in the Middle East, while copper slipped following a softer China demand outlook.

2. Irish Economy: Modest Growth, Inflation & a Growing Unemployment Gap

Moving to domestic news, the programme focused on the latest quarterly GDP figures released by the Central Statistics Office (CSO). Ireland’s Q3 2025 growth of 0.4 % YoY was a slight slowdown from the 0.8 % seen in Q2 but still outpaced the EU average of 0.1 %. Ciarán explained that the contraction was largely due to a dip in manufacturing activity, while services remained robust, buoyed by tourism and digital exports.

Inflation remained a headline concern, with the CPI ticking up to 6.3 %—just below the target range of 2‑4 % set by the Central Bank of Ireland (CBI). A deeper dive into the inflation data revealed that food prices had increased by 7.8 % over the last year, while energy costs saw a 12 % rise. The CBI’s latest commentary indicated that the Bank will keep the policy rate at 4.5 % for the foreseeable future, citing persistent inflationary pressures.

A key piece of news was the new government plan announced by Finance Minister Paschal Donohoe to address the widening unemployment gap. The plan includes a €200 million “Employment Support Package” aimed at subsidising wages for SMEs that hire graduates and young workers. This follows the 3.5 % rise in the national unemployment rate to 5.4 %—the highest since 2014.

3. Tech & Innovation: Data Centres, Cloud, and a New Silicon Valley‑Irish Link

One of the most engaging segments was the interview with Declan O’Brien, CEO of Irish data‑centre operator, GaiaTech. Declan discussed the company’s expansion plans in Dublin and Cork, which will add 20 % more capacity by 2028. He cited the steady growth in global cloud demand—particularly from multinational tech firms such as Amazon Web Services and Microsoft Azure—as a primary driver of the expansion.

Declan also touched on the UK‑Irish data‑centre partnership that recently launched a “Green Data Hub” in the Irish Sea, designed to share data centre resources and reduce carbon footprints. “Ireland is already a leader in renewable energy, and with the UK’s recent shift to more hydrogen‑based power, we have a unique opportunity to integrate our data‑centre infrastructure with clean energy sources,” he said.

In a separate interview, a representative from EirGrid spoke about the nation’s wind farm expansion plans. EirGrid aims to add 3 GW of offshore wind capacity by 2030, positioning Ireland as a key player in the EU’s green energy market. The programme linked this to the government’s €5 billion “Green Energy Incentive Package,” which offers tax credits for businesses that install wind turbines or solar arrays.

4. Finance & Banking: A Tightening Credit Environment

Ciarán covered the latest developments from Ireland’s banking sector, noting that the Bank of Ireland and AIB recently reported a modest increase in lending rates—by 0.25 %—in line with the ECB’s policy outlook. The interview with Roghnan McCarthy, Chief Economist at the Bank of Ireland, highlighted that the tightening credit conditions are mainly a response to rising global inflation and the need to safeguard the banking system against potential defaults.

The segment also mentioned that the Central Bank of Ireland is conducting a “stress test” on small‑to‑medium enterprises (SMEs) to gauge their resilience to the expected rise in interest rates. The outcome of this test will be announced next month and could influence future credit policies.

5. Housing & Real Estate: Rising Prices and the Impact of New Regulations

Housing prices in Dublin’s outer suburbs saw a 2.3 % increase over the month, with the average price of a 3‑bedroom flat hitting €590 000. A special guest, Siobhán Ní Bhraoin from the Irish Property Council, explained that the surge is partly due to the introduction of a new “First‑Time Buyer Tax Credit” designed to make home ownership more affordable. While the credit offers a €10 000 rebate for buyers purchasing a property below €600 000, it also brings stricter loan‑to‑value ratio rules to prevent speculative bubbles.

In contrast, the housing market in rural County Kerry remains sluggish, with a 1.5 % drop in property sales due to limited supply and a lower demand for second homes. Ní Bhraoin highlighted the need for targeted subsidies to rejuvenate rural property markets.

6. International Relations: EU‑UK Trade and Brexit’s Aftermath

The programme took a timely look at the EU‑UK trade talks, which reached a new milestone with a provisional agreement on “Digital Services Tax.” The deal, which will reduce tariffs on digital services from 6 % to 2 %, is expected to benefit Irish tech firms exporting to the UK. An industry analyst from TechIreland explained that Irish software developers are poised to reap the benefits, especially those involved in AI and data analytics.

The segment also mentioned the ongoing negotiations over the “Northern Ireland Protocol.” Ciarán quoted a UK official who stated that the UK will continue to apply a light‑touch regulatory regime on Irish imports, easing some of the trade friction that emerged after the 2023 exit agreement.

7. Consumer Outlook: Confidence, Spending and the Holiday Rush

In the final part of the show, the host discussed the latest consumer confidence survey released by TNS Ireland, which showed a 4‑point drop in confidence levels over the last month. Analysts attribute this dip to the rising cost of living and uncertainty over upcoming tax reforms. Retail sales, however, remained steady, with a 3.1 % increase in the first quarter of the holiday season, driven largely by online sales.

The programme concluded with a brief look at upcoming tax reforms: the government plans to increase the standard VAT rate from 23 % to 25 % next year, citing the need to shore up public finances. The impact on consumer spending, especially on luxury goods, will be a key point of contention in the upcoming parliamentary debates.

Take‑away: A Week of Economic Momentum and Cautionary Signals

The Business on 6 December 2025 painted a picture of an economy that is resilient yet vulnerable. Ireland’s modest GDP growth, coupled with steady but cautious corporate investment, suggests that the country is still on a recovery path. However, inflationary pressures—especially in energy and food—along with tightening global monetary policy, could put strain on both households and businesses.

For Irish enterprises, the key message is to keep a close eye on the forthcoming policy changes—especially in taxation and regulation—and to take advantage of the new green energy incentives that could unlock cost savings. Consumers, meanwhile, should prepare for a potential rise in living costs while being mindful of the opportunities presented by the evolving digital and renewable energy sectors.

The programme closed with Ciarán noting that while the week’s news points to a cautiously optimistic outlook, the next few months will be crucial for shaping the trajectory of Ireland’s economy. Whether the government’s new employment package can close the skills gap, and whether the banking sector can remain resilient in the face of tightening credit conditions, will be watched closely by policymakers, investors, and everyday Iranians alike.