Here's my summary of the key news overnight in 90 seconds at 9 am, including that pleas from Spain and Italy for urgent financial aid from the eurozone to bring down borrowing costs were dismissed by Angela Merkel yet again as divisions hardened on the eve of their critical summit. The euro is trading at near six year lows against the US dollar and near all-time lows against the New Zealand dollar. Short-term national interest by everyone involved is causing the rest of the world to shake their heads. Even members of the EU who are not in the eurozone are questioning the value of EU membership.
Across the Atlantic, the signals rebounded and they were somewhat higher than expectations. US durable goods orders grew positively, and home sales were up as well.
US and UK authorities have fined giant British bank Barclays US$450 million for manipulating the benchmark LIBOR index. It seems odd to me that London authorities who have also been investigating dodgy behaviour in this index have not taken similar action yet. This fraud is likely to have cost borrowers billions.
Also in the US, California city Stockton has become the largest municipality to decide it will file for bankruptcy. It's a city the size of Christchurch about 100 kms east of San Francisco. Bond markets seem to be taking this action in its stride, but it may become a trend for some hard-pressed communities. The US local authority bond market is a huge US$3.7 trillion market so Stockton's US$700 million bond debt is only a very tiny part of this and the main loss will be taken by bond insurers, not the market itself.
In China, the focus is on policy makers there and whether they are about to announce new stimulus measures. The markets are betting they will, and stocks are up around the world. The Dow and the S&P500 are up nearly 1%, oil and gold are higher.
The NZ$ is starting today at just over US$0.791 and the TWI starts at 71.9.
[Corrected who has fined Barclays]
27 Comments
We're getting similar sized rates increases here in Oz , Hugh ...... mostly attributed to Julia Gizzard's incomprehensible carbon tax ...
... " we're leading the world / got best practice / showing our responsibility ".......
I think she was a fan of Helen Clark ...... there's always one in the world , isn't there !
..... same with the Democrats in the US of A .... Barry Obama is starting to wonder , " What would George do , if he were in my shoes , right now ? "
He's bushed !
Meetings in the streets – riots.
In the current worldwide situation, leading into massive financial and emotional struggles for the majority of Kiwis the nation needs a public platform for debates. Unfortunately under the leadership of J. Key the government doesn’t listen. Most needed democratic processes, political honesty and integrity, most important qualities in such situations are disappearing. In stead of seeking “Open Forums” between the government and the NZpublic the government is increasingly divorcing from the wider NZpublic.
The Barclays CEO's giving up his bonus, hurrah!
"Barclays Chief Executive, Bob Diamond, said: “The events which gave rise to today’s resolutions relate to past actions which fell well short of the standards to which Barclays aspires in the conduct of its business. When we identified those issues, we took prompt action to fix them and co-operated extensively and proactively with the Authorities. Nothing is more important to me than having a strong culture at Barclays; I am sorry that some people acted in a manner not consistent with our culture and values. To reflect our collective responsibility as leaders, Chris Lucas, Jerry del Missier, Rich Ricci and I have voluntarily agreed with the Board to forgo any consideration for an annual bonus this year.”
http://group.barclays.com/news/news-article/1329925891776/navigation-13…
Whoop-de-do. If anyone in senior management knew about it, and if they were doing their job properly they should, must resign.
I'd have thought people might be facing jail over something like this.
Its worse than the 'News of the World' scandal?
News of the World situation a shocker but you're comparing apples with pineapples.
Make billions from fraud, get fined 450mill. I love and respect my banking professionals!
Hugh and cry,
Talk about hitting people when they are down.
Talk about taxing the wrong way.
Talk abou taxing the brain cells.
Talk about screwing the system.
Talk about divorced from reality.
Talk, talk, talk.
They talk..they waste, .they get paid, royally.
And the hardest hit...get to pay.
A ratepayer's revolt is called for.....get rid of the revolting idiots in power.
They are a waste of time, effort and mostly...........money.
You even pay their RATES, with your money...already.
Get back to basics.
Get back in CONTROL....some are way out of control, in this fair land...
(And around the World, or we would not be in this state...lets take stock...not STOCKTON, that's no state to be in).
(FAIR PLAY....now there is a ....TUI)..
Stop talking to these over paid idiots....they deserve the flick, not a raise of the fare.
TALK TALK TALK...but at whose cost.
Get back to common sense.
What the hell does it take????.
More TALK.
The volunteers did more, with no TALK....just a little action....
Fair Play....and no overpaid....FARE....butt for the inflated egotists, sitting on their buts,
(but there was, a free lunch and a Golf Caddy....and a free ride......BUTT I DIGRESS).
How many times can ye be so wrong...
Maybe we should fly in a Prime Minister for more talks...and a smile and a wave.
Fair Comment...or what???
Where's the hue and cry???
Seems blogging ain't cutting it......eh lads.
No wonder I rant....and turn blue.....I am apoplexic.
Blue Star, Blue Chip, ....all a big blue.....and all because of a few Bwankers and a few Poll-lies and a lot of uncivil serpents and borrowing at any cost and all a big............WASTE.
And plans for more......at the ratepayers cost.
SHEEEESH.
ban that burnhard.
US regulators on Wednesday gave a useful sketch of what that global pyramid looks like and why Libor is so important. At the apex it reckons there are loans worth $10 trillion (£6.4 trillion) priced off Libor. There are then interest rate swaps (derivatives which are insurance against adverse interest rate movements) worth $350 trillion, also priced with reference to Libor, and then at the base of this tower eurodollar futures (short-term loans which are also bets on interest rate movements) worth $564 trillion. Given this, it's surprising that setting the rate for Libor is unregulated. But it's not even subject to the full forces of the free market either. It emerges from a 16-strong cartel of banks which, as we now know, was ripe for abuse.
http://www.telegraph.co.uk/finance/comment/damianreece/9360672/Record-f…
This is disgusting behaviour by Bob Parker. I am fed up with Freedom of Speech being eroded in this country. It also tells me Bob Parker cannot take the heat, take a hard-pill Bob.
This must also contravene the Local Authorities Act.
No, it means one raving loon with an extremist right wing/liberatian agenda gets removed so the other 99.999% of the ppl get representation they voted for.
regards
Not before time, I suspect. I don't have any time for your Mayor, his attitudes or outlook or politics - but he and the Council were democratically elected, and have a statutory job to do.
Have you looked at the Bartlett vid clip yet Hugh? It might help you understand that incomes are not a given, and that costs (infrastructure included) of all things must rise in comparison.
Worse, those relative cost-increases are on the way to triage, which is on the way to 'unobtainable'. Get used to it.
Do be silly, then he'd have to accept he's part of the problem and not the messiah solving it.
regards
hugh - I think 'each' is the correct usage.
At least I'd be in the company of folk capable of thinking. One-note trolls I find boring after a while - shallow even.
I've just devoured two books today - William Ashworth's "The Economy of Nature', and nearly finished the Dennis/Urry 'After the car'.
Learning is good. How did you go with that Bartlett clip? Got a rebuttal?
PDK and Steven - for two people who love expressing opinion and freely proffer all sorts of information and advice on this site - you have just missed the point.. FREEDOM OF SPEECH.
Perhaps you should spend some of your time reading the Universal Declaration of Human Rights, NZ Bill of Rights etc.
Just because you don't like someone else's opinion, politics, thoughts or expressions doesn't mean they don't have the right to express them. Allowing no dialogue or effective communication is a dictatorship. While we have parliamentary democracy in NZ that is as far as the democratic process goes. We have no Direct democracy!!
PDK - I watched your videos that you have obviously also suggested to Hugh. All I can say is that there are a lot of variables that make it impossible to accurately model the exact future. Your mathmetican appears to be suggesting that some form of population control will be necessary - Is this also you view?
NotanE - I don't mind debate, indeed wouldn't be here if I did. Refusal to investigate, though, I don't have time for. I read Julian Simon, Bjorn Lomborg etc, before I came to my conclusions. Actually, I'm still reading/learning/thinking. I expect those I debate to do the same - ignorance is the original sin. :)
To be exact, he says that population growth WILL cease. Either nature will do it for us, or we can do it voluntarily. No third option. I agree with that appraisal.
The first option will be very, very ugly. The second may still be ugly, but is the better option as it gives us more control. 30 years ago, I'd have said we had time. Now, I don't. 30 years ago, I'd have though we'd be well past religion. We haven't even managed that, so I doubt we'll ever be intelligent/mature enough as a global society, to address the issue. (bad pun, sorry).
Good on you for bothering to watch......
Anyone who does not see population control becoming a necessity for the survival of the species ,whether by natural means (events) or voluntary intervention is either.... already living on Mars in a biosphere....or has a reserved a flight to do so.
..... ban the Catholic Church , yer reckon , Count ?
Every sperm is sacred ...... have you been spilling your's upon the dusty ground , lately ....
..... " free the swimmers ! " ..... El Poppa be damned .... let the little guys go free ......
Now you know full well GBH that my roots in the left footer brigade have been strained since Brother Mooney's little one on one with me about inciting boys to practice the dark art of spilling up behind the bikesheds, resulted in me getting six of the "best' (and I mean the little bastard used to jump off a chair in delivery) for something I had yet to even become involved in.
That said my good man ...I made a conscience choice, along with my wife of course to being vasectomised at 28........didn't bother to write to Papa for his understanding.
and does it slow you down..?....nosireeeeeeebob....and I love my breasts.
PDK - Your reading/learning/thinking should include both sides of the debate otherwise it is ineffective.
For instance your stance on CO2 emisions (which brings you to your conclusions) is lacking in balance. I suggest that you google some of the Lord Monckton on line clips and do some research on climategate. Mathematicians, Staticians and others who fudged the input data to get the desired outcome they wanted.
Also watch some of Al Gore being questioned over CO2 in the USA. There is the possiblity of legal action being undertaken in the USA by some 30,000 scientists (some of whom were shafted) who are indicating the whole CO2 BS was fabricated. Nasa data has been recently released that supports the findings of the 30,000 scientists. Al Gore also refused to have open debate on CO2 with the scientists claiming there is already concensus and so no debate is necessary and this is why this topic will end up in the court room.
The Global warming fraternity are bit by bit being exposed. When the warming didn't start occuring they even had the audacity to change it from global warming to Climate change and Co2 emisions became responsible for all adverse weather events.
If you think ignorance is the sin I would suggest you look further and see who is feeding the ignorance! The people cannot make informed decisions if they are not privy to information. That is why I strongly believe in Govt relinquishing it's dominate position and performing the basics.
The people are not ignorant and when given the correct information are able to make rational decisions. I have first hand knowledge of this so do actually know what I'm talking about. As direct democracy is not practised in this country vital and factual information for decision making is not provided and therefore the reading/learning/thinking opportunity is lost.
Hitler was able to practice genocide because the people were gullible and he kept repeating his message (the populace was brainwashed) and he used fear to control those who he couldn't brainwash. There is evidence in abundance throughout the history books of similar atrocities and we are all here today because eventually people take action against the perpetrators with evil desires. Never under-estimate the spirit of man to take action and this applies to both sides of this argument. Self-preservation is a strong and inate characteristic ingrained in the psychy of the majority, most use it to benefit the majority while others use it to manipulate usually for percuniary advantage. Follow the money!!!
yes, the planet probably has a natural population limit of no more than 2 billion, which was about the 1920s I think. Though up until the 1960s humans controlling thier own population probably would have worked. Today I suspect it would not work as its too late now, nature will do it for us....the good thing about NZ is only 4 million....of course the real danger is being swamped as the titantic goes under....
regards
dp
Wow, good on the mayor....DavidC doesnt like such mental behavior such as yours mind......
regards
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