Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the Dow is closing up more than 40 points after slightly better than expected news on the US economic outlook.
US jobless claims fell just 27,000 to 451,000 in the last week, which was less than economists had forecast.
This continued revival in appetite for risk globally helped boost the New Zealand dollar to 72.6 USc, near 8 month highs.
This is somewhat remarkable given New Zealand has just suffered its biggest financial collapse since 1989 and its biggest natural disaster since 1931.
The New Zealand dollar was also riding on the coat tails of a strong Australian dollar, which rose to 92.4 USc overnight.
The Australian economy continues to power along. It produced 53,100 extra jobs last month and the unemployment rate over the Tasman fell to 5.1%, which was better than expected.
The compares with a jobless rate here of 6.8% and a loss of 6,000 jobs in the June quarter.
Meanwhile, the Reserve Bank of New Zealand is expected to keep its Official Cash Rate on hold at 3% next Thursday.
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17 Comments
You old man ribber, you.
This is an interesting read for the Mortified:
PowderD........... I was both exhausted and suicidal after that....this guy could have done more
damage than Rev Jim Jones and Leonard Cohen at a euthanasia camp.
So I had to ......re..ee..ee..ad it again..phew ! ...to see if it was in someway oversimplified.
Some points of note...extract... And since a fiat currency (such as the US Dollar) is composed of debt -- credit advanced based on a promise of future growth -- it is unclear how and with what the remaining oil will continue to be purchased. The end of growth is an imponderable; start talking about it, and everyone suddenly decides that it's lunchtime and starts ordering drinks. At least the French have a proper word for it: décroissance (literally, “de-growth”); here in the anglophone world all we can do is gibber and mumble about “double-dips.”
Here he uses the words....... continue to be purchased......fraught with the complexity of the U.S. perceiving itself as the Global Sheriff ....his assumption is speculative at best, as when a first strike mentality gains a level of reality choices will be made..for better or worse.
However unappealing the word de-growth may be to the U.S. (they)who matter appear to have at least considered the possibility if not the probability...as in my Ground Zero Theory.
But as usual they will seek to ...impose..themselves to encourage/enforce unilateral de-growth in the interests of what they will sell as.....Balance and Harmony in the global economy.....uh huh..?
.Extract............. .When faced with insufficient domestic oil production, an industrialized country has but two choices:
1. Import oil 2. Collapse But when faced with insufficient global oil production, an industrialized planet has just one choice: Choice Number 2. Some might argue that there is a third choice: start using less oil right away. However, in practice this turns out to be equivalent to Choice Number 2. Using less oil involves making some radical, often technologically challenging, politically unpopular, and therefore expensive and time-consuming changes. Here he used the wording ...politically unpopular and therefore expensive...this is assuming having reached a critical point there is no revolutionary type uprising against the institutionalised wealth interests that control political outcomes...( I know I'm doing my best...stopping short of bloody murder..... As to technologically challenging....I am in the camp that blueprint viable alternatives have been in existence for some time now resting in the ownership of those whose interests seek to maintain the Status Quo until financially exhausted. Thank you for the read ....but no more trying to kill me ..uh.Care with those US job figures - because of Labour Day 9 states did not file in time - including California (which is a whopper). Estimates were made for the new claims for these 9 states - everything points to these being on the 'happy' side.
Also note that almost every week now the initial claims data is revised UPWARDS (ie worse) the following week which attracts less attention - at the moment by 5000 plus.
US economic figures have to be carefully dissected..........
Well, as I thought, the CCC has moved quickly with the building codes...which means not only higher commercial costs but also greater costs for house building...plus gst!
This does raise the question as to how many of those receiving full insurance payouts, will rebuild in the same location. The scientists will waffle a good deal but in truth they cannot say that the fault will in time stop moving...nor can they say there are no other unknown faults in the area.
The US statistics amount to ongoing lying by govt.
The RBA will likely return to raising their rate before xmas. That will see the Kiwi drop back toward 76.
"This does raise the question as to how many of those receiving full insurance payouts, will rebuild in the same location." - Not only do I expect many people to not want to rebuild in the same spot but looking at this document I also think the "high liquefaction" areas should not have been allowed to be built on, let alone rebuilt on http://ecan.govt.nz/publications/General/solid-facts-christchurch-liquefaction.pdf
Actually I'd have thought nor west rather. Oxford, where we are, and Rangiora have been shaken all right but have gotten off very lightly in comparison with Kaiapoi/Chch despite being closer to the epicentre. I'm not too worried about the fields around us being turned into subdivisions, and even if Chch was re-located to Rangiora wouldn't be bad for us (not that it'll happen).
Kate, I don't think there is a truly "safe" spot in NZ once you take into account the potential earthquakes, volcano eruptions, tsunamis :) If I left, which isn't on the cards although a M8-9 on the Alpine fault would probably change my mind (assuming I survived it), I'd go back here http://www.labaule.com/panorama/labaule/index.html In fact, I might have a look at houses there tonight. Just kidding.
Ooo
"In an extraordinary meeting this morning, the council resolved to adopt a new policy whereby earthquake-prone buildings will have to aim for a goal of 67 per cent of building code levels rather than the existing 33 per cent.
The new standard would bring older buildings up from about 10 per cent of the strength of a brand new building, to about 50 per cent." herald
But what about 'heritage' buildings....who pays the costs and what happens if an owner does not have the munny. ???
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