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90 seconds at 9am: Dubai debt fears roil markets; NZ$ down again

Posted in News

Watch video on YouTube here. Watch on our video page here. Bernard Hickey delivers the key news overnight in 90 seconds at 9am in association with ASB, including news European stocks fell 3.2% overnight on fears about Dubai's massive debt default, Bloomberg reported. Dubai World has asked to delay payments to bankers on US$60 bln of debt. Royal Bank of of Scotland and Barclays are seen most exposed. European banking stocks were hit hard on fears Dubai's debt default could prove contagious. US markets are closed for Thanksgiving. Meanwhile the New Zealand dollar fell to 71.5 USc as the Dubai debt fears reduced appetites for risky currencies. The New Zealand dollar also fell further against the Australian dollar, which in turn dragged the TWI down to 64. The gap between the NZ and Australian economies is seen widening as Australia's economy surges and New Zealand's stays in the doldrums.

7 Comments

Worth noting that the NZ$

Worth noting that the NZ$ price of gold is surging as gold strengthens AND the NZ$ weakens - up to 1660/oz.

Still someway of its 18 month high in NZ$ terms - around $1980 as I recall.

However the trend of rising metal and weakening NZ$ is one that looks juicy given markets have massively overestimated the recovery in 2010.

Is it just me or

Is it just me or is Bernard looking more and more like Ricky Gervais everyday

The gold price going up

The gold price going up during recent times of fear indicates (thus far at least) that gold is now behaving more in its traditional role as a wealth preserver rather than last year when it got treated like all other commodities and got whacked hard as something that was highly liquid.

I also find it interesting that there doesn't seem to be much of a move into the USD (time will tell). Given that European markets are down 3.2% on fears you'd think that the US Dollar Index (which is mostly Euro) would be up a lot more than 0.5. It's currently 74.80 which means for all the fears the US dollar is still nigh on record lows for the year and hasn't even recovered the losses for this week.

George - it is in

George - it is in fact just you.

Are we glad Dubai (Aeorspace?)

Are we glad Dubai (Aeorspace?) didn't buy Auckland Airport, now? They might have to sell a few things off to pay the bills? Who to, and for what....

NZ govt, they would buy

NZ govt, they would buy it back for top dollar....the twits!

Just wanted to say great

Just wanted to say great job with the blog, today is my first visit here and I've enjoyed reading your posts so far
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