Gareth Vaughan, sitting in for Bernard Hickey, details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that Prime Minister John Key will meet Warner Bros film executives today and says it’s a 50-50 call as to whether The Hobbit movies will be made in New Zealand.
Key says Warner's faith in making films here has been shaken after an actors union sought collective contracts outlining minimum standards. Around 2000 people staged a rally in Wellington yesterday in support of the films to coincide with the Warner executives’ arrival. The films are expected to cost about NZ$630 million to make.
The New Zealand dollar fell to its lowest level against the Australian dollar in almost a decade. A few minutes ago it was trading at A75.88 cents, its lowest level since November 13, 2000. And the Aussie dollar is again close to parity with the greenback at US99.24c as both consumer and producer prices rise in Australia.
In November 2000 the New Zealand dollar was trading at just US39.42c with the Trade-Weighted Index (TWI) at 46.20 compared to US75.26c and 66.55 today.
Economists believe the Reserve Bank of Australia may lift the official cash rate from 4.5% on November 2 but here the Reserve Bank is expected to leave the OCR on hold at 3% this Thursday.
In the US Bloomberg reports the Treasury has sold US$10 billion worth of five-year Treasury Inflation Protected Securities at a negative yield for the first time as investors bet the Federal Reserve will succeed in halting deflation by buying debt in an attempt to boost the economy.
And Goldman Sachs will sell US$250 million of 50-year bonds, yes 50 year bonds, this week in an offering directed at retail investors.