Here's my summary of the key news overnight in 90 seconds at 9 am, including news US stocks fell a further 0.8% overnight on renewed fears about the US 'fiscal cliff' and after European Union officials delayed a key decision next Monday on a fresh bailout for Greece.
The New Zealand dollar was solid around its late Thursday levels of 81.6 USc, having fallen about 1c after weaker than expected local jobless figures raised expectations of a cut in interest rates. See more here in BNZ's Kymberley Jones' currencies report on our site.
Officials told Bloomberg a European finance ministers meeting scheduled for Monday would not not decide on a fresh bailout payment for Greece, raising the risk Greece could default on a 5 billion euro payment due next week. See more at FT.com.
Meanwhile, the European Central Bank decided not to cut its official interest rate from 0.75%, but said it was ready to use its 'Big Bazooka' to buy Spanish bonds if Spain asked for a bailout, which it has yet to do. See more here at Bloomberg.
Concerns are also growing in Germany that the Southern European recession is slowing demand for German exports and the German economy.
Closer to home, wholesale interest rates fell slightly after the unemployment rate shock yesterday.
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4 Comments
Kim Dotcom said unfortunately the Government wants to invest in roads.
"In 10-15 years more people will work and shop from home. You don't need Tarmac you need fibre." He also said that data storage centers require massive amounts of clean electricity which we have, especially if the Aluminium Smelter leaves. Our future as a nation lies on the internet. Anyone who has children can confirm this- you don't need an expert! Much of what children, adults and oldies want to do these days is internet related.
Dunedin could have funded the Pacific Cable with the money we have just wasted on a stadium. A cable would have funded the city and guarenteed a massive increase in tech, design, fashion, retail, construction etc etc jobs throughout NZ! But that is blindingly obvious. How could we expect our >$1,000,000 PA leaders to figure out what anybody with kids could have told them.
It is not just the immediate jobs from being a world data center, it is also the environment that cheap and blindingly fast internet (Why not free?, McDonalds/Starbucks figured out years ago the benefits free wifi brought to their businesses). Build data centres in Dunedin or Invercargill or Christchurch. (Think Seattle or Vancouver). That attracts tech startups and established tech businesses. Hi tech business demand good environmental standards, organic food, fashion, the arts, universities/polytechs and access to adventue/outdoors activities. We have everything in spades,EXCEPT even mediocre internet (our internet is batshit, but not gay)! Its a great, simple and INEXPENSIVE proposal to increase employment opportunities for our children and make a more exciting environment for us oldies. It is certainly more positive than a future based on indoor rugby, 20 story whore houses, casinoes, lotsa booze and overseas ownership of our sorry asses.
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