Gareth Vaughan, sitting in for Bernard Hickey, details the key news overnight in 90 seconds at 9 am with Bank of New Zealand, including news that concerns are continuing to mount over Europe’s sovereign debt crisis with the spotlight on Ireland, Portugal and Greece overnight.
Speaking in Brussels European Union (EU) President Herman Van Rompuy said: “We’re in a survival crisis.”
Irish bond yields rose and the euro fell as Ireland negotiates with the EU and International Monetary Fund about aid to bolster its state finances and secure capital for its banks.
Against this backdrop the prospect that Portugal could also require an international bailout was raised as were concerns Spain could face speculative pressure.
And Austria’s Finance Minister said his government was considering withholding Austria’s share of the next slice of Greece’s 110 billion euro rescue package, because the Greek government had missed a revenue-raising target. This news hit Greek bonds pushing the extra yield over 10-year German bonds up by 12 basis points to 898 basis points.
German Chancellor Angela Merkel raised the possibility of the euro collapsing, warning: ''If the euro fails, then Europe fails.”
Meanwhile, in China Premier Wen Jiabao said the country’s cabinet was drawing up plans to counter inflation. China recorded 4.4% inflation in October and a report yesterday suggested the Government might impose price limits on food and introduce tougher punishment for people caught speculating on agriculture futures such as corn and cotton.
In the currency markets the New Zealand dollar fell to US76.60 cents from US 77.25c yesterday, its lowest level since November 1.
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50 Comments
Interest rates will rise on this piigs fiasco...but the banks here are facing declining demand for credit as well and they sit on a mountain of losses hidden in the mortgagee listings kept off the balance sheets and the market...this is why Bollard and the bank bosses are screaming out for people to borrow and binge again....
Hard bloody luck....the peasants are waking up to discover the banks are parasites and both the RB and govt are married to the banks. Pay down debt as fast as you can. Do not take out a loan. You and all the other peasants have the ability to drive down prices on property and retail stuff.
Oh and you need to realise govt and govt depts run on the principle of 'spin whatever is needed' to influence you.
Now start organising the chookhouse and get with the gardening. Get with the mates and buy a 'predator' so you can all share in catching your fish. Ride a bike. Use the bus or train. Stop buying shite you don't need.
"PSA was this morning confirmed on two orchards in the Hawke's Bay, two in the Bay of Plenty towns of Edgecumbe and Whakatane, east of Te Puke, as well as three more Te Puke orchards." herald......
Shite hitting the fan...bloody awful for the growers...think about the economic impact on the regions.....think about the storm damage down south....the earthquake.....the possible return to drought on the eastcoast....the cost to taxpayers of supporting the growers....remember this is no quick fix situation.....Now tell us the SCF QE bailout for all was a great move!
After the Hobbit debacle the "financial services hub" is now looking for tax breaks.
Hmmm, might try to get a handout for my widget factory...
More on Kiwifruit & PSA from Seeka:
Seeka Kiwifruit Industries Limited updates the market on the current situation with Pseudomona Syringe PV Actinidiae (PSA) and, in particular, its current understanding of the impacts on Seeka.
As at 10.00am 17 November 2010, 25 orchards across the New Zealand kiwifruit Industry had been infected by PSA. Te Puke appears to be the epicentre with 21 confirmed cases. There have also been confirmed cases in the Hawkes Bay (2), Edgecumbe (1) and Whakatane (1). All confirmed orchards are of the gold variety (which represents approximately 25% of the NZ kiwifruit crop by volume), and there are no reported impacts on the green variety (which represents approximately 75% of the NZ kiwifruit crop).
Seeka has 105 hectares of long term leases growing some 1.2m trays and in total handles 4.8m trays across 484 hectares for all supplying orchards.
In Seeka’s case, 6 orchards supplying Seeka have been confirmed as having PSA, all in the Te Puke region and totalling approximately 39 hectares. If all supply was lost from those orchards, it would represent approximately 8% of the gold kiwifruit handled by Seeka, or 2% of Seeka’s total kiwifruit supply.
Of the 6 orchards, 2 orchards are under Seeka long term lease totalling 7.46 hectares. Based on current knowledge, the symptoms on these particular orchards are considered light and action has been taken to remove infected plants.
Seeka advises that it will provide its six month report by November 29, 2010 along with the current year guidance.
Chris Martenson - puts it well.
http://www.energybulletin.net/stories/2010-11-16/interview-chris-marten…
More homework Andrew J - no play after lunch until you've finished.
"a lot of grand rhetoric"
Followed by a long and dying farting sound!
The horrible truth starts to dawn on Europe's leaders
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100008667/t…
It seems highly probable that as peak oil really starts to impact on our societies it will create work for the many who are almost un employable at present due to a lacking of useful skills. This will be due to an increase in many and varied manual labours as oil will become too expensive to power many of its current uses.
History shows us that those in power (in the authoritarian sense) will most certainly not sully their hands with hard labour. Laws will be introduced to ensure that suitable sections of our populations are sufficiently desperate to do whatever is needed.
Who was it posted some drivel some time back about property being a safe investment...wasn't it POP....whomever it was, perhaps they would like to comment on this from tv.co
"More than 50 properties will be seriously affected if a proposed route for a new highway north of Auckland gets the green light"
Needless to say a heap more properties will get no compensation and can expect to be well within range of the drumming bloody noise...and the owners will have the pleasure of knowing their place is worth a dam sight less.
Ireland could be bailed out by the EU to the tune of 100 billion euros, the Wall Street Journal reports - http://www.theaustralian.com.au/business/news/bailout-of-irelands-banks…
The sky is black with PIIGS coming home to roost. In 100% pure English explained what happen currently in Europe:
http://gonzalolira.blogspot.com/2010/11/is-europe-coming-apart-faster-t…
Yes - this guy is smart - a combination of Iain’s and Wolly’s view zh, zh almost !
please read.
http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html
Here more - WOW - have a look the guy with the bike : http://gonzalolira.blogspot.com/p/cartoons-doodads.html - great site in general.
so you import pollen from a country with a prevalence of psa infections but you don,t have mandatory testing regime for the same and you are surprised at what has occurred--how did davo get this job with maf--common sense not one of his strong points obviously
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10688159
DRYWALL DANGER
* Chinese drywall used in some US homes has been blamed for the failure of air-conditioning systems and wiring and pipe corrosion.
* It is said to produce a rotten-egg smell and Americans with the drywall have complained about coughs, eye and skin irritation, breathing problems and asthma attacks.
* Complaints in the US surround houses built in 2006 and 2007. Many of those affected were built after the 2005 Hurricane Katrina disaster and homes in Louisiana, Florida and Texas are affected.
Herald!
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