Post RSS Feed 
Podcast Feed
90 seconds at 9am: Dubai debt fears roil markets; NZ$ down again
November 27th, 2009Bernard 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$60 bln of debt. Royal Bank of of Scotland and Barclays are seen most exposed. European banking stocks were hit hard on fears Dubai’s debt default could prove contagious. US markets are closed for Thanksgiving.
Meanwhile the New Zealand dollar fell to 71.5 USc as the Dubai debt fears reduced appetites for risky currencies. The New Zealand dollar also fell further against the Australian dollar, which in turn dragged the TWI down to 64.
The gap between the NZ and Australian economies is seen widening as Australia’s economy surges and New Zealand’s stays in the doldrums.
Tags: 90 at 9, Bernard Hickey, debt, Dubai, New Zealand dollar, NZD
You may also like to read:
Loading ...
November 27th, 2009 at 9:02 am
Worth noting that the NZ$ 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.
November 27th, 2009 at 9:24 am
Is it just me or is Bernard looking more and more like Ricky Gervais everyday
November 27th, 2009 at 10:24 am
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.
November 27th, 2009 at 10:41 am
George – it is in fact just you.
November 27th, 2009 at 10:47 am
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….
November 27th, 2009 at 12:59 pm
NZ govt, they would buy it back for top dollar….the twits!