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90 seconds at 9 am: Hanover court action; US payrolls; EU austerity; Australian rates

Posted in News
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Here's our summary of the key news over the weekend in 90 seconds at 9 am, including news that the FMA has launched a civil action against the Hanover directors and promoters when the December 2007 prospectus was issued and extended.

By taking action against 'the promoters' this action brings in Eric Watson who was not a director at the time. And they have left themselves room to take further action on other prospectuses because this civil suit is only seeking redress for the NZ$35 million that was raised at the time, and not for the full NZ$550 million that was lost in the Hanover collapse.

In the US this week, economists are expecting the Government to report that payrolls rose by more than 200,000 workers in March - a fourth consecutive month - as companies became more optimistic about the outlook for growth.

In Spain, a tough austerity budget was introduced to their parliament, while a credit rating agency warned that Greece's debt may need restructuring yet again, and EU ministers are having trouble holding their nerve through all of this. Meanwhile, the EU has raised its 'firewall' to €800 billion (NZ$1.3 trillion) and they are moving ahead with some payback for the big three credit rating agencies whose views they clearly don't like.

This week in New Zealand, we will get the Crown Accounts to February, and hear about Barfoot & Thompson's Auckland house sales for March. We will also be closely following the Reserve Bank of Australia's official interest rate review announcement tomorrow - the prospects for a cut there have risen as they struggle to maintain their economic momentum. Folks are worried about their economy especially as demand from China for Australian resources seems to be slowing sharply.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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15 Comments

Could the FMA decision to

Could the FMA decision to pursue civil rather than crimanal action be in any way related to the limp wristed community service sentences that have now set a precedent? Or did they need to spread the net this wide to capture Watson in it?
 
I know of one guy given community service and had his time signed off by a sports club for work he would have done anyway. That is how the old boys networks work.

yep.....they should get jail

yep.....they should get jail time IMHO.
regards

The FMA is just the optical

The FMA is just the optical backstop to lure suckers into trusting other people to 'invest' their money.  What a joke, they are not monitering, ie 'bullion buyer' nor are there harsh penalties.  The crooks loot the money in fat fees, and the suckers are left with awesome double didget negative returns.  Even a hefty 'fine' and lengthy 'community service' is no consolation when the rates are due and there are mouths to feed or bills to pay.

"Does Central Bank

"Does Central Bank Independence Frustrate the Optimal Fiscal-Monetary Policy Mix in a
Liquidity Trap?"
have not read this yet, but it looks like it might be interesting......
http://www.interdependence.org/wp-content/uploads/2012/03/Paul-McCulley-...
 

".....more optimistic about

".....more optimistic about the outlook for growth. In Spain, a tough austerity budget......"
 
The oxymoron of the week?  Already?

and yet more re-structuring

and yet more re-structuring in Greece and it hasnt started with the other PIIGS yet....I feel like Im looking at coyoti way out there past the cliff egde and Im damned if I can see what is holding him in fresh air......
regards

Tight oil in the shale rocks

Tight oil in the shale rocks is pretty labour intensive, and produces boom bust communities like the old gold rush days.  No doubt there is growth, as they seek to suck out as much as possible in as short an amount of time as possible.  Literally thousands of new wells possibly tens of thousands need to be dug every year, exponentially increasing in order to meet the crazy ambitions, and unachievable oil production targets.
http://www.youtube.com/watch?v=b97zJxKEqAk
http://www.theoildrum.com/node/9079

  Naval commander's April

 

Naval commander's April Fools' stunt leaves him with egg on face
 
 
Senior naval officers called in for 'secret' exercise, troops up all night preparing, all revealed as Vice Admiral Rotberg's idea of April Fools' joke, but no one in IDF is laughing

 

 

http://www.ynetnews.com/articles/0,7340,L-4211056,00.html

Laughable..."Over the past

Laughable..."Over the past two years, European leaders have repeatedly accused the agencies of exacerbating the sovereign debt crisis by unfairly downgrading countries’ creditworthiness and further driving up their costs of borrowing."
The ratings agencies were blind to the need to downgrade EU countries for years beforehand due to political/economic  dogma.  When they finally start to react its way to little, too late and the Pollies whine about it.....hello chaps your counries are buggered due to following voodoo economics and your watch dogs follow the same script so its hardly surprising you "missed it" is it...
regards
 

Another optical backstop,

Another optical backstop, designed to lure the suckers.  Imagine the sell-off, and subsequent spending spree if debt was actually rated on the ability to repay.  It's absolutley nuts how many people have their life savings tied up in these instruments of debt.

China to boost imports from

China to boost imports from NZ
Beijing will also encourage importers to buy more from countries that have free trade agreements with China, such as Pakistan, New Zealand, and member countries of the Association of Southeast Asian Nations.
http://usa.chinadaily.com.cn/business/2012-03/31/content_14958634.htm
 

New RMB system from China in

New RMB system from China in the works.
 
The central bank official said the new system will be compatible with SWIFT, but its implementation may take years from the current research phase
http://usa.chinadaily.com.cn/business/2012-03/31/content_14957889.htm
 
See 8 minute youtube clip for explanation
http://www.youtube.com/watch?feature=player_embedded&v=CalZLYzP3e4