Here's my summary of the key news overnight in 90 seconds at 9 am, including news some big reputations are taking a hit.
International auditing firms are in the firing line today. Firstly, it is Deloitte who are facing a £20 million claim in the UK for the way they handled advice in the sale of now-defunct MG-Rover.
And secondly, PwC is facing a much bigger €1 billion claim for the way they handled the audit of a major Irish insurance company.
The IMF has agreed to make its fourth payment to Greece. What is interesting about this is how extended the Greek bailout has become. After four bailout payments so far, the Troika has paid over €5.8 billion of a total promised program of €173 billion. The Germans have the Greeks on a very long string.
The story in China of their economic slowdown is building. It turns out that most of their regions are trailing their growth targets. But the news is not quite as alarming as it may seem, as almost all regions have been set targets well above the national target of 7.5%.
As the northern summer season progresses, there is little to report in the big markets. The Dow and gold are both basically unchanged, although somewhat surprisingly the oil price is soft.
Later this morning we get important local building consent data for June. That will indicate whether the market is responding yet to housing shortages, especially in Auckland.
Also look out for an important payout announcement today or tomorrow from Fonterra. Some analysts are predicting a healthy rise.
The NZ dollar opens at 80.2 USc, 87.2 AUc, and the TWI is at 75.5.
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10 Comments
"alarming" David?
No growth goes forever, and 7% certainly doesn't - something every financial journalist should know. You should be starting from the fact - and it's a bloody obvious fact - that China can't 'double' from here. Not without severe triage from our lifestyle, at least. So you could them apply some investigative effort into ascertaining how much short of the10 years, it will cease.
For 'alarming', how about 'inevitable'. It's less emotive and closer to fact.
As the northern summer season progresses, there is little to report in the big markets. The Dow and gold are both basically unchanged, although somewhat surprisingly the oil price is soft
I think this is a bit juicy for the debt trading nutters.
Fed Tapering Assured As Treasury Projects 30% Slide In Annual Funding (And Monetization) Needs - Read on
oil price soft? yet the trend for 1 month, and 1 year is slowly up....
hmmm $104 and $107 ish, yesterday $105 and $107 ish...
As always I wonder when I see comments what could be noise for a day or 2 as opposed to a trend over weeks and months.
Despite the trend for BDI flat or down....
Surely we'd see more goods being moved if we were having a recovery?
5 years ago the BDI was 8300, today 1100, so seven times (ish) less.
Just what is china doing to all the goods it was making pre-2008? its not shipping them anywhere it seems, ie where is their GDP coming from?
regards
Chinese "GDP" - and a lotta other "data" comes, perhaps, from forms filled in by local and regional apparatchiks eager not to disappoint, cross or otherwise show up their superiors.
Just as Discworld was turtles all the way down, it's commissars and cadres all the way up.....
Im not sure who they are fooling. Its interesting listening to the ppl who are all for the Green's latest handouts. They have anger and resentment, telling them GDP is 3% higher while they still dont have their own place wont make 1cent of difference. The likes of "Big Daddy" and "Your Landlord" chortling over the increases in rent and property values show the disconnect. I guess we are on a course now for some violent protests this or next year...messy.
regards
Well at least they go back to 1929, so "we" should be able to see the difference in the 2 methods. It really doesnt matter though does it? ppl are hurting, fudge the numbers all you want, even make them more accurate and true it wont change how ppl feel with no job and no prospects of one. It wont stop riots occuring, I mean I can so see it now, police chief on the loudhailer, "hey GDP is really 4% higher you can all go home now, happy" Im sure that would go down well....really well...like the police cheif better home A&E can remove that loudhailer easily....
fiddling while Rome burns...
regards
Darien Fenton , the shadow minister of labour , has announced that she's concerned that more Australian businesses are looking to relocate to NZ , to take advantage of our lower wage costs .....
... is it only me , or do others also find David Shearer's mob as daft as fish on bicycles ?
We have lower wages than Oz anyway .... so why not happily accept their decision to offer us a job or two .....
I'd guess you mean this,
http://www.labour.org.nz/news/more-aussies-see-nz-as-low-wage-destinati…
"We have deep income inequality in New Zealand already. This Government seems hell-bent on making it worse."
by bringing in call centres, places that usually offer start of career jobs and thus stepping stones to better ones for NZers.
Or production jobs for un-skilled or semi-skilled workers who are hard to find jobs for....
she makes no sense.......wierd.....utterly clueless....we have to confront the Govn on what they do no matter if it makes sense, or not.
Is this one of the best Labour can come up with as an MP?
Bugger just who do you vote for....
regards
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