In this section
Offers for readers
Follow the news from interest
The comment stream
- 1 of 30361
- 1 of 415
The news stream
- Taskforce to target 'loopy' council rules 47
- Bernard's election diary - July 22 43
- Bernard's election diary - July 23 38
- Bernard's election diary - July 21 27
- Net migration at 11 year high 24
- 90 seconds at 9 am: Markets ignore non-economic tensions 15
- What happened today 14
- Time for government to wake up 14
- Regional Divide: Zombies, Cinderellas and Sleeping Beauties 12
- What happened Tuesday 7
90 seconds at 9 am: AU resources bubble has burst; China heading for harsh winter; Fed eyes more stimulus; NZ$ the tallest dwarf
Here's my summary of the key news overnight in 90 seconds at 9 am, including news the US Fed has delivered its strongest hint yet that it will unleash fresh round of stimulus. And it is likely to deliver it "fairly soon" unless the economy improves considerably, minutes from the central bank's August meeting show. Markets reacted sharply and positively on the news.
The US dollar fell against most currencies as another attitude of 'risk-on' set in. The Dow and the S&P500 were in negative territory prior to the announcement, but in late trade the S&P is up in positive territory and the Dow is almost back even.
Commodities are rising. Oil is up over US$97 per barrel, pushed up by a decline in supplies and the stimulus talk, and gold has moved higher on the news too, up now to US1,655/oz.
Staying in the US, Congress has been warned that only by resolving their fiscal cliff issues will the economy keep growing. Perhaps the Fed minutes are a similar warning. The signs are not promising.
BHP, the world’s biggest mining company, has slashed its new project plans by a whopping NZ$84 billion after its second-half profit plunged 58% because metal prices declined and costs rose. There's trouble in China as stocks of raw materials grow sharply and there are predictions of a 'harsh winter' there. Brace yourself. The Aussie resources bubble has burst.
More fallout: Japan reported a wider-than-expected trade deficit in July as Europe’s sovereign-debt crisis and the slowdown in China dragged down exports and higher oil prices boosted imports.
All this has the NZ dollar holding at over 81.2 USc and the TWI starts the day at 72.8. We have what we might call the tallest-dwarf syndrome - we are in trouble but not as much trouble as everyone else.
Bernard Hickey will be back tomorrow.