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US earnings season starts well; Geithner's replacement; Morgan Stanley cuts senior jobs; NZ$1 = US$0.839, TWI = 75.6

Posted in News
Jack Lew, Geithner's replacement as US Treasury Secretary

Here's my quick summary of the key overnight news you need to start your day.

Wall Street is modestly higher as Alcoa's earnings announcement beat estimates. It said it was bullish China as global demand growth for the commodity will see it recover 7% in 2013 as China’s economic rebound drives demand for cans, transport and office buildings. European stocks also rose, and the UK FTSE100 hit a four year high overnight.

Optimism about corporate results does not flow into investment banking however, Morgan Stanley is ready to cut 1,600 jobs, half of them outside the US. Apparently these cuts target senior employees.

The new US Treasury Secretary is reported to be Jacob (Jack) Lew, President Obama's White House chief of staff. He will replace Timothy Geithner later this month.

US oil production is set to hit a 25 year high in 2013, and US imports will fall to a 25 year low according to official reports. Oil prices today are basically unchanged at US93/bbl.

In China, Foxconn said Chinese authorities are investigating allegations that at least one of its executive have accepted bribes from suppliers. Foxxconn makes the iPhone and other consumer electronics. Apple needs Foxconn and their low-cost manufacturing capabilities as they are about to launch a new cheaper version of their iPhone product.

Today we get New Zealand data on our trade balance in November, when the NZ dollar averaged 82.0 USc and 73.3 on the TWI.

The NZ$ opens today at 83.9 USc, 79.8 AUc and the TWI is at 75.6

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David, I like the


I like the following:

Today we get New Zealand data on our trade balance in November, when the NZ dollar averaged 82.0 USc and 73.3 on the TWI.

The NZ$ opens today at 83.9 USc, 79.8 AUc and the TWI is at 75.6

Left unstated is the presumably obvious conclusion, that the trade data released today is likely to be negative anyway, and yet our exporters/import susbtituters have had yet another cost hit through the exchange rate of 3.1% since November; and 8% over the last year. That on top of a 40% hit in the previous 3 years. The chart you produce now daily (and thanks for that) suggests this is carrying on up, without some sort of action or intervention.

Good for civil servants' (and anyone else on the public payroll) overseas holidays, but not at all good for NZ's long term wealth.


psssssst....wanna gork at the

psssssst....wanna gork at the new Quadtrillion dollar coin....