Here's my quick summary of the key overnight news you need to start your day.
Firstly from Australia, economists there are expecting another quarter of a percentage cut in the official cash rate in the first quarter of 2013 as the Reserve Bank of Australia seeks to stimulate non-resource sectors of the economy and the sun sets on the mining boom. The RBA next reviews its rates on February 5, 2012.
In the US, their trade deficit probably narrowed analysts said ahead of official data releases. Their exports are climbing, while imports - especially of oil - are shrinking.
In the UK, the government has thrown its weight behind a drive to get large companies to pay their suppiers on time. A "name-and-shame" campaign is proposed for those who do not adopt prompt payment policies.
Global central bank chiefs have agreed to water down and delay a planned bank liquidity rule in the final negotiations for Basel III. They now have four more years to fully comply. Banks will also be allowed to use an expanded range of assets including some equities and securitised mortgage debt to meet the so-called liquidity coverage ratio. Bank of England Governor Mervyn King said, "For the first time in regulatory history we have a truly global minimum standard for bank liquidity."
Meanwhile, in Greece a tax scandal is making the headlines, but it is masking the fact that very little progress is being made tackling widespread and long tolerated tax evasion. It is Greece's Achilles heel and shows what can happen when evasion becomes embedded in a culture.
This is the first week back from holidays for many and there is little fresh data out this week in New Zealand. However, we will get an updated look at household balance sheets.
The NZ$ is at 83.2 USc, 79.4 AUc and the TWI is at 75.0 as at 8:30am. Actually, the Japanese yen is at 73.3 and at its highest level since September 2008.
3 Comments
"Bank of England Governor Mervyn King said, "For the first time in regulatory history we have a truly global minimum standard for bank liquidity."
Yes it's 'minimum' alright....bank assets are anything the bank can decide on...yes even the banks own debt..that too is an asset...and Basel 3 is so much shite.
How soon before banks realise they can claim the future earning potential of their host mortgage holders, as bank assets..and they can put an asset value on their credit creation rights.....hahaaaahaaahahhahahaahaaaaaaaaaarrrrrrrrr....
what a farce.
Cuts, cuts & more cuts coming. Having just spent 2 weeks in Aus, there has been little stimulus effect from the last few cuts.
Looks like the Coast is in for a big wet come Wed and Thur....no need for a pool to swim in...
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