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- Housing unaffordability a key factor in child poverty 133
- Bernard's Top 10 at 10 31
- Five areas where NZ should be bold 26
- Dairy prices face prolonged spell in doldrums 23
- The Weekly Dairy Report 22
- Parker interim Labour leader as brawl erupts 22
- 90 seconds at 9 am: Sharp dip in dairy prices 17
- English welcomes NZ$ fall 15
- 90 seconds at 9 am: NZD has 11% fall 13
- Labour plans fast leadership vote 11
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.