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S&P 500/Dow pummelled; U.S. reporting season underway; Debt market activity to measure investor sentiment in Europe; REINZ reports record national median house price
Here's our summary of the key news overnight in 90 seconds at 9 am, including some early good news as the first quarter reporting season gets underway in the U.S.; debt market activity this week in Europe; projected Consumer Price Index hikes; and a record national median house price recorded in March.
U.S. market analysts will undoubtedly be searching for some positive news this week as the corporate reporting season there steps up.
About 86 companies in the S&P 500 are expected to post their first quarter results over the week. There has been brighter than expected news so far. Of the 32 companies reporting so far, 75% have beaten Wall Street expectations. (See Reuters story here for more).
Both the Dow Jones Industrial and the S&P 500 ended their worst two week percentage drops since November on Friday. The Dow and the S&P each fell 2.7 percent for the two weeks from the close on March 3.
European debt market activity in focus this week includes that in the safe haven that is Germany, and Spain likely to be a test of investor sentiment with the the dust of the European Central Bank cheap loan injections having settled some what. (See more here).
The International Monetary Fund, which holds its spring meeting at the end of this week in Washington DC, will be looking for further ways to stabilise the region.
Other key events later this week to watch for include the release of U.S. retail sales data and industrial production as well as the outcome of the first round of the French presidential election.
Closer to home, economists are predicting a 0.6% rise in the Consumer Price Index (CPI) (to be released this Thursday) caused mainly by increases in petrol, rents and insurance as well as excise tax on cigarettes. (See Radio New Zealand business report here).
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ASB economist Jane Turner says if the CPI contains weaker than expected inflation data it could delay any potential increases to the Official Cash Rate.
"Underlying inflation indicators have been very subdued and New Zealand's economic recovery is quite gradual, so the Reserve Bank is wary of weakness in inflation pressures and if anything a weaker result could see them push out the timing of OCR increases further."
Meanwhile, the Real Estate Institute of New Zealand is reporting a record median house price recorded in the month of March of NZ$370,000. (See Gareth Vaughan's story here for details).
REINZ reports that 7,330 homes were sold last month, the highest number since November 2007.
Unsurprisingly, Auckland housing prices were well above average. The City of Sails hit a new record median price of NZ$495,000 in March. Canterbury home prices also saw a notable increase while the capital bucked the trend with a pullback.









16 Comments
I see all that debt has
I see all that debt has finally ignited the flame and the Yanks are Saving Fossil Fuels like MAD.
PDK would luv this guy.
http://www.bloomberg.com/news/2012-04-11/car-geek-s-startup-makes-hybrids-look-more-elegant-and-tough-.htmlhttp://www.bloomberg.com/news/2012-04-11/car-geek-s-startup-makes-hybrids-look-more-elegant-and-tough-.html
More shiny bits than Carbon Copied..... Dumpster Truck.
Actually I dont think PDK
Actually I dont think PDK would "luv him", I certainly dont. In terms of Peak oil and AGW, its wasting raw materials for no benefit ie its mis-directed consumerism, so silicon valley ahs lots of hybrid users? well i odnt think they get it then.
Prius's are dodgy buys, cost twice as much and last probably 1/2 as long.....I have not looked at the TCO in terms of co2....but making a car costs a lot of co2, so if you need 2 x $45k priuses to one plain small toyota at $22k that suggests the co2 footprint could be way worse....over 20 years......I sohould spend the time this evening seeing if I can find any real numbers.
Americans are not saving because of AGW, or depletion, they are saving because they are (for now) broke....so its quite likely there is no real change in how they think.....its just an empty wallet that is preventing them from do the same or greater damage.......just wait until the unrest starts.....$5USD a Gallon trigger point?
Also one big reason for having ever increasing petrol use and gas guzzlers is the way US roads are maintained....states income for road repairs declines as petrol use declines and they are already at or heading to insolvency....see "unrest"........
regards
Twas Irony Steven....I know
Twas Irony Steven....I know how Power Down thinks....I think.
Glamming up a bigger waste of space and time and munny and energy would be like a red rag to a BULL.
Butt that is a Yank for you....and a YANK customer.....too...incidentally.
Gotta make a buck...and waste a buck....at any cost....and any TCO.
Ya gotta see both side of the coin.
Each an idiot in their own ...sweet oblivious......way.
Tis the economy.....NOT.
9 out of 10 people know that
9 out of 10 people know that neither steven nor PDK has a sense of humour , .........
...... well , not as the rest of us 9 out of 10 understand humour to be ......
:)
ah well.....bye bye economy
ah well.....bye bye economy anyway......
regards
Gas costs $6.6 USD a gallon
Gas costs $6.6 USD a gallon in NZ, and there is no unrest. Why do you think the US will explode with unrest at $5 a gallon?
The glaciers of the Karakoram
The glaciers of the Karakoram ranges in Pakistan are expanding !
....... it's global cooling we're experiencing , not warming , ....
... we gotta reverse this trend NOW ...... start burning stuff , anything ...... darn , this laptop is harder than even I thought to ignite .......
Wouldn't want you to get your
Wouldn't want you to get your spirits up Gummy:
Not so bright in the U.K. these days - 50% of the country is in drought.
http://www.telegraph.co.uk/topics/weather/9205639/Worst-drought-since-19...
This is a Party Political
This is a Party Political Broad cast on behalf of ............NO PARTY.
It applies to the UK, USA, NZ....GREECE...NORTH KOREA...SYRIA......IRAN.....add your own......Stupid country......etc.
Neither idiot is right........or left.
The countries are ..all...DIVIDED and DIVORCED from REALITY....North Korea in General, UK Conservatively, NZ Nationally....USA Democratically..............ya get my drift...
For example....to continue Amanda's link to the UK drought...
Where I keep my Motorhome in UK, they had the worst floods in living memory a few years ago.
Two years late they were still living in caravans and upstairs rooms...and some still are.
A wee bit like Christchurch....one year on...and counting...the RATES....to NOT fix INFRASTRUCTURE.
But they will soon have a Cardboard cutout.......Fan bluddy tastic.
You can acually draw a lot of parrallels between these various countries.
Labour had never planned for floods nor upgraded any INFRASTRUCTURE, so labour was not working ......it had spent all the munny on WELFARE...hence my standard comment.
"Labour does not work".
BUTT I am not one-eyed .....about the Powers that be....I do not like ANY of em!!!!!!!!!!!.
UK...Conservatives did not plan for droughts as they were also too CONSERVATIVE....and thought it would never change....so not enough resovoirs for 65million...plus....so did not plan for a rainy-day...NOT. ...either.
Distinctly some parrallels there...to GORGE.......on.
And the finacial idiots BROWN/BERNANKE/GEITHNER/et...al... and others since, all thunk the finacial problems and the weather problems and the oil problems etc....would all just fade away....as long as they were all RIGHT.....and kept taking the munny...not investing...wisely....as fast as they could shovel into their own nests...until there was nun...left.
And naturally everyone thunks that money grows on trees and houses still..or better still...can be stolen from Savers Pockets.........unlike a Labour Government that thought it was the Workers not working...... so ...there.
Now they have all wasted munny on not fixing INFRASTRUCTURE.....and now you should see the pot-holes in the roads and the dry conditions of the drought.
Talking of shon-key infrastructure....
Now you should see an ACC claim....from so far off-sure....it is almost laughable and can be heard in KOREA......albeit only SOUTH.
I hope they do not INVADE........anymore.
You see these swings and roundabouts are like happening yearly and at greater cost, as each bunch of Political Parties, all get it wrong as they pander to either end of the DIVIDE...and conquor.
Now that we need a joint effort.....no chance...cannot even agree to disagree.
The BANKS run dry...the RIVERS overflow....The same old flow and ebb.
Just thunk they know best...and clearly..they don't....know...what...is....WRONG.
Even a simple feed is not fed to the masses in N.Korea.....they feed it into a ROCKET and Broadcast it to the WORLD to prove how all is well....with the Nucleaur Family.
The great gods of POWER and the great I ams...have alot to answer for...
Nutty as a fruit cake. despotically bent and hell bent on fixing...the wrong INFRASTRUCTURE.....
Somebody give em ALL.....................a mirror...........................PLEASE
Ho Hum...all change...no change.
9 out of 10 people would
9 out of 10 people would think Peak Oil is unlikely to impact them in their lifetime and 9 out of 10 people would think global warming is a wind up!
Then 9 out of 10 people are
Then 9 out of 10 people are below average, intellectual-wise.
:)
So that means apart from you
So that means apart from you and I and sore-loser.....explains a lot.....
;]
regards
It's
It's "intellect-wise"...
Makes me want to agree with your statement :-)
.... aha ha ha de haaaaaaaa
.... aha ha ha de haaaaaaaa ...... good one !
uh huh.........for the
uh huh.........for the former, yes I can agree, mostly because the majority of ppl have not heard of it and most the ones that have, we see that their minds lock up with fear when they do.....its like a memory blank space......"oh god my lifestyle is going to go to ........<blank>..... what the f*** was that? oh never mind I'll order another latte." scenario....
For AGW, I doubt it but certainly a high % dont want to know now they have lost their jobs or are struggling....
In both cases the facts are Peak oil is now past us (+ or - a few years) and AGW is real and a serious problem.....
regards
"I’m really starting to think
"I’m really starting to think that we’re heading for a crackup of the whole system."
So Krugman finally starts to enunciate it....I wonder if its a recent dawning of realisation or some, many? months old......
http://krugman.blogs.nytimes.com/2012/04/15/insane-in-spain/
And as for us,
"What happened to Spain was a housing bubble — fueled, to an important degree, by lending from German banks — that burst, taking the economy down with it. Now the country has 23.6 percent unemployment, 50.5 percent among the young."
So swap German for "Austrailian mate" Maybe this is what is driving the Nat Govn to do nothing, fear....
regards