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Markets React to Divergent Monetary Policies: FTSE, DAX, S&P 500, and NASDAQ Move Amid EU Rate Hikes

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  Published in Business and Finance on Saturday, December 20th 2025 at 8:54 GMT by RTE Online

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The Business – Saturday 20 December 2025: A Deep‑Dive into Ireland’s Economy, Global Markets and the Future of Work

On Saturday, 20 December, RTE Radio 1’s flagship business programme, The Business, delivered an insightful and data‑rich look at the state of Ireland’s economy, the performance of global markets and the challenges and opportunities that lie ahead. Hosted by long‑time presenter Mark Daly, the one‑hour broadcast was punctuated by interviews with government ministers, industry leaders and economists, and featured a special “Future of Work” segment that drew on the latest research from the Economic and Social Research Institute (ESRI). The show ran on the RTÉ website, with a full transcript and links to the referenced reports, and is currently available as a podcast on major platforms.

1. Global Markets: A Mixed Outlook

The opening segment set the tone by reviewing the day’s market performance. The FTSE 100 slipped 0.6 % following a weak earnings season for UK banks, while the DAX rallied 1.1 % after Germany’s Chancellor Olaf Scholz announced a €10 billion stimulus for green energy. In the US, the S&P 500 edged up 0.4 % on better‑than‑expected retail sales data, but the NASDAQ was down 0.9 % after the Federal Reserve signalled that interest‑rate hikes will pause this quarter. Mark highlighted that the European Central Bank’s policy statement still expects a modest 1.2 % rate hike in 2026, a move that could tighten liquidity for EU‑based borrowers.

To provide context, the programme linked to an EU Commission report on the “European Banking Union” and a WSJ feature on “The New Normal of Post‑COVID Financial Regulation.” These resources were cited as essential for understanding the regulatory backdrop affecting the markets.

2. Ireland’s Economy: A Resilient Yet Pressured Growth

A key focus was the Irish economy’s performance in the fourth quarter of 2025. According to the Central Statistics Office (CSO), GDP grew 2.5 % YoY, a slight slowdown from the 3.0 % growth recorded in Q3. The service sector led the expansion with a 3.2 % increase, while manufacturing posted a modest 1.1 % rise, buoyed by export demand for high‑tech components. Employment, meanwhile, added 22 000 jobs – a 3.2 % increase – with the unemployment rate falling to 4.1 %.

“While growth remains solid, we’re seeing early signs of overheating in the housing market,” said Minister for Finance, Mr. Aoife Kelly during a 15‑minute interview. She discussed the National Housing Strategy and the introduction of a new Housing Affordability Scheme aimed at providing a 5 % discount on mortgage rates for first‑time buyers. The minister referenced a CSO housing affordability index that shows Irish households spending 15 % of disposable income on housing – the highest in the EU.

The programme linked to the CSO’s quarterly report and an article from The Irish Times titled “Ireland’s Housing Crunch: What’s at Stake?” – providing listeners with deeper insight into the data and potential policy responses.

3. Climate Change, ESG and the Irish Economy

The broadcast also tackled the growing importance of environmental, social and governance (ESG) considerations in Irish business. Catherine O’Connor, CEO of EcoTech Solutions, discussed her company’s shift toward circular economy models and the adoption of carbon‑neutral manufacturing processes. She cited a World Economic Forum (WEF) study that projects ESG‑compliant firms could outpace non‑ESG peers by up to 8 % in returns over the next decade.

“Irish firms must now reckon with the fact that investors, regulators, and consumers are prioritising sustainability,” O’Connor remarked. The segment highlighted a new European Union Green Deal directive that imposes stricter reporting requirements on large corporations, with the Irish Corporate Sustainability Reporting Act set to be implemented in 2026.

Listeners were directed to the OECD publication “ESG Reporting: Trends and Implications for Ireland” and to the Irish Climate Action Plan for detailed guidance on compliance.

4. The Future of Work: Automation, Digital Skills and the Gig Economy

A half‑hour special on the Future of Work featured a panel of experts from the ESRI, the Irish Labour Board, and the Digital Innovation Hub. They explored how automation is reshaping the job market, especially in manufacturing and logistics, and the need for reskilling initiatives.

Dr. Liam Ó hEocha, senior economist at ESRI, warned that “up to 12 % of current jobs could be displaced by AI by 2030,” but also emphasised that new roles in data science, cybersecurity, and renewable energy would offset many of these losses. He cited an ESRI survey showing that 68 % of Irish workers are keen to pursue lifelong learning but lack employer support.

The panel discussed the National Skills Strategy, which aims to expand vocational training and apprenticeship programmes, especially in the gig economy where the number of independent contractors in Ireland has risen by 18 % in the past year. They also addressed concerns about job security, wage erosion, and the need for updated labour regulations to protect gig workers.

The segment linked to the ESRI’s Future of Work Report 2025 and to a Labour Board brief on the “Rights of Gig Workers in Ireland.” Both resources provide actionable data and policy recommendations for stakeholders.

5. Closing Segment: What Lies Ahead

The show wrapped up with a discussion on potential geopolitical risks that could affect Ireland’s export‑driven economy. Chief among these was the Ukraine‑Russia conflict’s ongoing supply‑chain disruptions and the recent US‑China trade tensions. Mark Daly highlighted that the Irish government is engaging in “robust dialogue with trade partners to mitigate any adverse effects” and that the Department of Industry and Commerce is monitoring the situation closely.

He also encouraged listeners to download the RTE Radio 1 Business Podcast app to catch the full audio, which includes extended interviews and background music for those who prefer an on‑the‑go experience.

6. Key Takeaways

1. Markets remain volatile; global indices are reacting to divergent monetary policies in the US, UK, Germany, and the EU.
2. Ireland’s economy is solid but faces tightening; growth slowed slightly in Q4 but employment remains robust.
3. Housing affordability is a top concern; policy interventions are underway to ease pressure on first‑time buyers.
4. ESG compliance is no longer optional; firms must adapt to new EU directives and shifting investor expectations.
5. Automation will transform the labour market; reskilling, digital skills, and updated labour laws will be essential.
6. Geopolitical risks are real; Irish businesses must remain agile and proactive in navigating supply‑chain uncertainties.

The full transcript, including timestamps, source links, and supplementary data, can be found on the RTE website. The programme also provides an opportunity for listeners to engage via social media, where they can post questions and share their own insights on the topics discussed.