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The news stream
- The housing crisis has nothing to do with the RMA 71
- Govt to sell up to 2,000 houses 42
- Markets now see OCR cut in 2015 41
- RBNZ 'pouring petrol on housing fire' 39
- The problem with lifestyle blocks 35
- Little focuses on small business jobs 31
- 90 seconds at 9 am: Sharp falls everywhere 28
- 90 seconds at 9 am: Yellen's 'patient' message 20
- Bernard's Top 10 19
- Annual migration growth tops 50k for 1st time 14
90 seconds at 9 am: Fed signals no change until unemployment below 7%; markets fall; China's credit crunch worsens; Swiss say no; NZ$1 = US$0.787, TWI = 73.7
Here's my summary of the key news overnight in 90 seconds at 9 am, including news the US Fed is in no hurry to change its policy settings.
Chairman Bernanke says he will continue with current settings, including the US$85 bln QE until the jobs situation is substantially better, and he confirmed they are thinking of tapering it down because the US economic situation is clearly improving.
But he says they are in no rush, although he suggested tapering could begin when the unemployment rate falls below 7%.
And he reminded us that there will be a long time between the end of tapering (which hasn't even started) and when they will need to raise rates.
Markets are digesting the news. The US dollar surged more than 1% in the few minutes after the announcement. Banks are reporting big demand for the US dollar. The Dow fell more than 1% as markets saw the Fed statement as 'status quo'. Gold and oil have fallen in US dollar terms. The bond markets don't like talk of tapering and UST yields are up.
Russia has a problem selling its bonds. Today's failed auction is the second in a row.
And the Swiss parliament has rejected a bill designed to resolve a dispute over undeclared bank accounts held by US citizens, potentially setting the stage for American prosecution of the country’s banks.
At 10:45 this morning we get the 2013 Q1 GDP result. Markets are expecting a 0.6% quarterly growth, but I wouldn't be surprised if it is better than that.
The NZ dollar starts today sharply lower at 78.7 USc, 85.0 AUc, and the TWI is at 73.7.