Bernard Hickey details the key news overnight in 90 seconds at 9am, including news the New Zealand dollar rose to almost 73 USc this morning from just 70.8 USc before yesterday's announcement from the RBNZ it would look at hiking the Official Cash Rate from the middle of 2010, which was slightly earlier than seen previously. This makes the NZ dollar slightly more attractive in the eyes of international investors.

Fixed mortgage rates may rise a bit in coming weeks after wholesale rates rose slightly, but variable rates are likely to stay put until after the OCR rises, which could be as early as April 29.

Meanwhile the butter price hit a record NZ$5,766/t, according to data out overnight from the USDA as Europe moves to reduce subsidies. The butter price has doubled since July to an all time record high in New Zealand dollar terms, but other dairy commodity prices have not risen as much.

In the United States, Goldman Sachs is stripping cash bonuses for its top executivess and offering shares instead that can't be sold for 5 years, Bloomberg reported. Also, France's Nicolas Sarkozy said he would impose a 50% tax on bank bonuses, matching the British tax, FT.com reports.

In Asia, China has reintroduced a 5.5% tax on real estate sales within 5 years of purchase to slow its property boom, FT.com reported.

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8 Comments

by Roger Thompson | 11 Dec 09, 9:34am

Butter prices to record levels..........US

Butter prices to record levels..........US trade deficit for October narrows , as exports jump 2.5 %.............Moves to limit bank bonus payments........ ...... ...........Quick , grab the Dapper Dan's big guy , all this good news popping out , you're gonna have a bad hair day !

by Roger Thompson | 11 Dec 09, 10:04am

Accelerated selling in Allied Farmers

Accelerated selling in Allied Farmers shares ! 175 000 crossed already this morning , in 9 trades . Existing holders are bailing , whilst 20 cents , the year's low , appears to be a good price . The high was 80 cents . That seems an eon ago .

by Bernard Hickey | 11 Dec 09, 10:07am

I suspect there will be

I suspect there will be a NZX inquiry into this. The price has collapsed, which is even more damaging for Hanover Investors because the amount of shares they will get is determined by the price leading up to the vote. This means even more paper is coming their way.

by Bernard Hickey | 11 Dec 09, 10:08am

Here's the response from Allied

Here's the response from Allied Farmers saying they know nussing...

http://www.nzx.com/markets/NZSX/ALF/announcements/3151653/Allied-Farmers...

by Roger Thompson | 11 Dec 09, 10:11am

And from the " strange

And from the " strange but true " department , sheep wool is 50 % carbon in its molecular structure . Federated Farmers believe the NZ annual wool clip contains 64 000 tonnes of carbon . As a carbon sink , sheep-cockies may be recipients of carbon credits . Doing their bit to arrest global warming .

by Roger Thompson | 11 Dec 09, 10:14am

Someone knows summit , Bernard

Someone knows summit , Bernard . 225 000 shares now sold , in 11 trades . .... . Are we hearing the catchcry from the Titanic : Bail , boys , bail like there's no bloody tomorrow ( and there wasn't ) .

by Roger Thompson | 11 Dec 09, 10:26am

The fog clears somewhat ,

The fog clears somewhat , one big holder of Allied Farmers shares is liquidating his/her holding . The holder was opposed to the Hanover deal . And is voting by selling . Even though these sales crushed the share price yesterday , he/she is committed to ongoing sales today . Bravo to you !

by Roger Thompson | 11 Dec 09, 12:03pm

308 000 Allied Farmers shares

308 000 Allied Farmers shares traded . Someone is buying them , on the flip side of the trade . My man on Woe Street ( America has Wall Street , NZ can have Woe Street ) says Hanover investors get issued their Allied shares on December 17 . But as the current market value is just 20 cents , there's a helluva lot more to be issued . Wouldn't by chance be an Allied insider mopping up those shares that someone is bailing out on ? Trying to keep the price up prior to the deadline ? Better not be ! Or it's off to gaol for you., matey..............shit , what am I saying . This is NZ . You'll probably get off , and a knighthood to boot .