Here's my summary of the key news overnight in 90 seconds at 9 am, including news the German economy slowed sharply in 2012 according to data out overnight. This is a blow for the euro-zone as Germany is the region's engine.
In France, Renault is talking about laying off 7,500 workers in France, another blow for the French president who struugled to 'save' Peugot jobs, and Mittal steel factories. It is piling up a bit for him. And Fiat has said that the whole EU car industry could 'unravel'. They are extending layoffs at a plant in Italy.
Cars are in the news in Australia too. The local manufacturers Holden and Toyota are reportedly ready to ask for more subsidies to continue manufacturing in Australia. Each have received about A$1 billion in 'support' over the past ten years. It election year, jobs are at stake, so anything's possible.
And in South Africa, a miner there is planning to shut four mines, threatening 14,000 jobs and risking a repeat of the unrest that followed similar moves by another miner late last year.
In the US the picture is mixed. Most people focussed overnight on the good retail data out for the holiday period. But in the past few hours, a key north-east manufacturing report came in way below expectations.
And ratings agency Fitch, which still gives the US a AAA rating, says it could downgrade that if lawmakers prioritise debt payments over other government obligations such as Social Security, or fail to tackle the nation's growing debt burden in the ongoing budget negotiations. There is no progress to report on those negotiations. Both parties are digging in.
Locally, yesterday's NZIER quarterly survey of business opinion came in way more positive than many were expecting. But it was not enough to firm our currency.
Gold is up, but US stocks are basically unchanged in mid-day trading.
The NZ$ starts today slightly lower at 83.9 USc, 79.4 AUc and the TWI is at 75.1.
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5 Comments
I guess the near term price of gold is dependent on the veracity of this story:
As initially reported here yesterday, in what is the biggest news of the week, and possibly the year, the Bundesbank has broken away from its "all is well" posturing exhibited as recently as three months ago, and in a dramatic reversal of its diplomatic position, has demanded repatriation of some of its NY Fed and all of its Paris-domiciled gold. We applaud Herr Wiedmann for this move, although we hope that the German people are allowed to witness, and verify, the arrival of the actual gold as opposed to simply empty crates.
Storm warning folks...
"Germany’s Bundesbank is to repatriate gold reserves held abroad to tighten control and combat currency crises in the future, pulling a chunk of its holdings from New York and all its bullion from Paris"
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9804444/Bundesbank-to-pull-gold-from-New-York-and-Paris-in-watershed-moment.html
The whole Euro Currency will eventually unravel. It is inevitable. Political unrest in Greece is now starting to morf into terrorisim. If they stay on the current track this will intensify and spread to other Southern European countries. May be the gold moves are a sign that Germany is preparing for this. The IMF statements preparing banks for financial shocks suggest that they think that things are about to turn very ugly.
"Three of the four were caught with cannabis worth up to $52,000 after police drove past a Tikipunga house and smelt the cannabis from the road, despite their patrol vehicle's windows being up"
Hmmmmm....does this mean the police officer was driving under the influence!.
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