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90 seconds at 9am: Dow above 10,000, but US$ weak; NZ budget outlook ugly

Posted in News

Click here to watch this morning's video. Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news the NZ dollar was firm overnight at 74.3 USc, but was down in morning trade. It was supported by positive sentiment on Wall St where the Dow rose over 10,000 for the first time in a year. Good results from Intel, JP Morgan and Alcoa reassured those who believe the global economy is recovering. However, the US dollar remains very weak and near one year lows. US Treasuries fell on more talk the US will expand its money printing again. There's also more talk that British authorities will print more money. Meanwhile, NZ CPI is expected to rise 1.1% in the September quarter in figures due at 10.45am. The Reserve Bank will watch this closely for clues on when to lift the Official Cash Rate. NZ government budget figures yesterday were very, very ugly. They show the worst situation since the early 1990s. Bill English will now have to deliver his own 'mother of all budgets'. Real reform of taxes and spending is needed to avoid deficits for ever.

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<blockquote> NZ government budget figures

NZ government budget figures yesterday were very, very ugly.

Indeed. And like a lot of sets of accounts at the moment, despite great efforts to put the best possible spin on them. The key numbers all appear to be going in the wrong direction, and estimates and forecasts have been, and probably still are, hopelessly optimistic.

If the US and UK

If the US and UK are printing money again and their currencies get devalued further, then are we still expecting more tourists from the US and the UK to visit here? Must be joking, right ..... ?

Perhaps we should get the

Perhaps we should get the NZ High Commissioner in London to do the rounds dressed as a rugby ball.

Wally Says: October 15th, 2009

Wally Says:

October 15th, 2009 at 10:19 am
Perhaps we should get the NZ High Commissioner in London to do the rounds dressed as a rugby ball.

Do you think we could get him for less than 400K/ day?

http://www.stuff.co.nz/travel/2964736/Rugby-balls-Tokyo-visit-costs-400-...