Here's my summary of the key news overnight in 90 seconds at 9 am, including news that the EU is investigating both Visa and Mastercard over the level of fees it charges for card transactions made by people visiting Europe.
Staying in Europe, the Greek government is in disarray after the leaking of a secret and explosive report drawing up vast reparations claims against Germany, covering both the First and Second World Wars. EU unity has long left the building, it seems.
The IMF has released a report trying to explain why inflation has remained so low despite the huge amount of money printing by the world's major economies. They called their report, The Dog That Didn't Bark.
China's consumer price index took a substantial dive last month, retreating from a 10-month high posted in February. Inflation there fell from a 3.2% annual rate to 2.1% in just one month, a sharp slowdown attributed to falling food prices. New Zealand's March CPI will be announced next Wednesday.
Fitch Ratings has downgraded China’s long-term local-currency rating to ‘A+’ from ‘AA-‘ overnight, citing several “underlying structural weakness” in the country’s economy, including rapid credit expansion from both banks and non-bank institutions. But the rating agency kept the country’s foreign-currency rating unchanged at ‘A+.’
Yesterday's report in New York of a dramatic rise in Alcoa's reported profit may have an echo in New Zealand - profitability in the aluminium industry is rising, although prices may not be yet.
The Kiwi dollar starts today even higher at 85.2 USc, its highest against the greenback since September 2011, 81.2 AUc, 84.6 Japanese yen which is up another 1 yen on the day, and our TWI is at yet another record post-float high of 78.36.
No chart with that title exists.
19 Comments
A twist in the Aussie arm of the bank fees class action case, as reported by the AFR:
"Australia’s biggest class action, which is against 12 banks over “exception’’ fees and backed by listed litigation funder IMF (Australia), may be derailed because of a legal claim that IMF had acted unlawfully by adopting the plan.
South Australian businessman David Edwards accuses IMF of getting the idea for a bank fees class action from him in 2009. He alleges IMF breached a confidentiality agreement, according to his affidavit filed in the District Court of South Australia on March 28."
http://www.afr.com/p/national/bank_fees_class_action_hit_by_breach_htTP…
"safer" indeed like a sinking ship ppl feel safer on it than in the water / lifeboat. One of the interesting comments Nicole Foss makes is that actually the USD will appreciate in a big/true crisis as ppl "automatically" run for a position they feel is safe....the USD. Even if actually it isnt, hence the NZD should tumble a long way. The Austrians / libertarians like Peter Schiff on the other hand seem to see the USD going down the pan. It will be interesting to watch this played out....sort of, we are in the same test tube of course.
regards
Even if actually it isnt, hence the NZD should tumble a long way.
Why would you say that? NZ is a derivative nation of the US with preferred vassal state ranking - our currency versus others will move higher along with the USD and probably out perform to the upside - just as you are witnessing right now.
The report states:
"With long-term inflation expectations firmly anchored, inflation is also likely to remain stable as the recovery strengthens—the dog has been muzzled and is unlikely to bark. Therefore, fears about high inflation should not prevent monetary authorities from pursuing highly accommodative monetary policy." If expectations are well anchored, why are there fears of inflation...? Seems oxymoronic! HGWHilarious! Did anyone proof this before it was published? I particularly like the angle they've taken of reassuring the minions that long term inflation will remain stable so that 'highly accommodative monetary policy' (i.e. money printing) can continue unabated. Genius.
Seems the Greeks are looking for new ways to get cash,
"The Greek government is in disarray after the leak of an explosive report drawing up vast reparations claims against Germany, covering both the First and Second World Wars."
http://www.telegraph.co.uk/finance/financialcrisis/9981837/Vast-Greek-w…
I see the Sri Lankan asylum seekers who landed in Western Australia and said they wanted to come to NZ were in a Deutsche Bank branded boat.
http://www.news.com.au/national-news/nsw-act/deutsche-bank-donated-asyl…
Hate to say this but, what the article doesn't mention is that over the past 6 months, most of the Sri Lankan Boat people being held on Nauru and Manus Island are being assessed as economic refugees with 60% being returned to Sr Lanka immediately. Being clever people they are now trying to sail past Australia and on to New Zealand where the Free education, Free healthcare, Welfare and WWF and Accomodation Assistance is just as, if not more attractive.
A sign on the boat read, "We want go to New Zealand - help us"
Immigration Department spokesman Sandi Logan said that authorities could let the boat continue to New Zealand, but "that's a matter for Customs"
Not to mention in certain economies the removal of property from the inflationary index has aided the so called stability of inflation in the reporting.
Ooooh look ! what's that..?
Housing and property .....
well take it out.......
Better...?
Brilliant..! job done,.....Doughnut..?
Don't mind if I do.
I saw a guy from http://www.saveoursavers.co.uk/ saying that there are estimates that real inflation of stuff needed to survive (food, power,water) was currenlty running at over 30% in the UK.
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