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90 seconds at 9 am: US stocks fall on rising tensions in Europe and Mid East; Fonterra float successful; CIC wants $100 mln; NZ$1 = 81.1 USc
Here's my summary of the key news overnight in 90 seconds at 9 am, including news Fonterra's NZ$500 million sharemarket offer has attracted a very strong buying response. The book-build brokers have had to scale back applications significantly and some investors have missed out entirely.
There will be no public pool; buying a share on the secondary market is the only way in now.
Meanwhile, The Wall Street Journal is reporting this morning that China Investment Corp. is in talks with Fonterra about investing in another shareholder fund created by the cooperative, this one with non-voting units.
CIC is reported to be looking to invest about NZ$100 million. With about NZ$600 billion in assets under management, CIC is the fifth-largest sovereign fund in the world.
In China, the Communist Party is now filling its vacancies in the power transition. Indications are that anti-corruption leaders are winning top spots, but some are not seen as very active policy makers.
In Europe overnight, clashes have broken out in Spain and Italy as angry workers stage a co-ordinated Europe-wide string of rallies and strikes against austerity cuts and tax rises, shutting transport, grounding flights and closing schools.
Markets ignored these tensions in early trading however, but they have responded when more trouble showed up in the Middle East, which this time have boiled over in Gaza and this has created strong risk-off sentiment.
Oil is up a few dollars, but gold is unchanged, curiously. The Dow is down 0.6% in mid-day New York trading.
The NZ$ starts the day at 81.1 USc and 72.7 on the TWI, both softer than yesterday.