S&P warns NZ and downgrades outlook; Irish crisis worsens with political instability; Aussie food fears
David Chaston details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news Standard & Poor's has changed the outlook on our AA+ sovereign credit rating to 'negative' from 'stable'.
S&P are warning that New Zealand needs to tackle its growing government deficit in the light of softening international prospects.
PM John Key says the revised view by S&P is more about how S&P looks at the world given the Greek and Irish problems, than about New Zealand specifically.
The change in outlook was unexpected, and snapped a rally in the NZ$; the currency dropped a US cent on the news, although it has stabilised at about 77 US cents overnight.
The news in Ireland gets worse; their coalition government looks shaky after the Green Party threatened to walk and call for new elections. A new government there could unstitch the rescue package just negotiated. That rescue could cost the EU almost 100 billion euros, similar to the Greek bailout.
Moodys advised Ireland could suffer a multi-notch rating downgrade from Aa2 (AA equiv), because the rescue package would crystalise huge bank contingent liabilities on to the Government balance sheet, increasing the Irish debt burden.
At the same time, Portugal is coming under intense pressure. And worries mount about Spain.
But its not all gloom in Europe; BMW is cutting its plans for a Christmas shutdown as demand surges for its cars.
In Australia, there are food fears and new calls to limit the ownership of rural land, and food production.
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39 Comments
Yes, Ireland is going to the vote in Jan. Fair enough, the people should get to vote on fundamental changes like what is mooted.
Interesting comments on the cost of the Irish bailout here: http://www.guardian.co.uk/business/2010/nov/22/ireland-imf-eu-bailout, 200 Billion!
hey dogma..how did you guess that Wolly ( in pic above) is actually part of the int.co.nz team and is a regular latte drinker up there on jervois rd. in herne bay with Darth Hickey and the gloomsters?
Wolly's a bit like chicken-man...he's everywhere, he's everywhere!
but now:Gold +0.7% to $1361
Gold ETF’s now hold 9 years of US mine supply. SEC filings show gold is now Soros Funds Management and Paulson and Co’s largest holdings (Bloomberg..
suck that up, Wally/Wolly..
Sit up straight Rob...pay attention:
Some benefits of an EFT include:
No stamp duty to pay (duty already paid on the underlying investments)
Flexibility in the timing of purchases and sales
Availability online.
Some disadvantages include:
No control over the activities or the content of the ETF.
Different costs associated with trading ETFs as distinct to ordinary shares
Tax implications
Hidden annual management costs ( the costs are built into the fund pricing)
No guarantee that you actually own gold.
The investor cannot redeem the gold or take delivery of the gold, only cash
http://buying-gold.goldprice.org/2006/01/gold-etf.html
All you will own, is a computer entry!.......
And your point is?
I know all that , you old turkey, i was just highlighting the fact that Soros and Paulson, 2 of the biggest players in the world have gold as their largest bet!
open you mouth..here comes your lunctime MEDS..and don't hide it under your tongue as you usually do...we can tell when you're off the MEDs 'cos your posts on here become crazed...now get off that pooter and have a nana nap!!
The point is you have bought something that is expensive, doesnt yet exist or might be already double, triple or more sold to others already.
Better I could offer you a nice bridge in brooklyn New York at a steal of a price!
If I wanted gold I'd want the gold in my hand........not in the bank, or held with someone....or given a piece of paper I can re-deem.....there is more than a few comments that there isnt enough physical gold to meet the IOUs.
regards
So it begins, the IMF are wanting to reduce the minimum Irish wage. The lowliest burger flipper or shelf stacker, barely making enough to survive on is now expected to bail out the wealthy bondholders and shareholders of the German/English/Irish banks.
The Irish have been reasonably accepting of their tough (Irish initiated) medicine. Watch that change with the orders now coming from New York (IMF) and Brussels (EU).
I expect Sinn Fein, the IRA and the new Irish government will be giving the Bankers the message; what can't be paid, won't be paid, share the pain or we default.
Except its election time soon?
Kind of hope a political party steps forward and says vote for me and we'll default and see the b@st@rds take the haircut. At some point enough ppl wil be able to work out that the impact of decades of indebtness being piled on by the present batch of useless pollies has to go past the impact of defaulting.
regards
Except its election time soon?
Yes Steven, the Greens and others are calling for an election in January, the present Gov. may not even have enough support to pass the budget.
It makes me sick to hear of more austerity for the poor while the wealthy get their full wack plus. I've been doing some budgets based on the usual household expenses. The income tax changes have failed to compensate well over half of us for the 20% increase in GST, ETS costs, vehicle re-licencing, ACC etc. Never mind the price rises for basic food and clothing.
Bank operating a casino in Las Vegas - http://www.theaustralian.com.au/business/news/deutsche-bank-gambles-on-…
I love this bit here Garreth.......:Deutsche got into gambling after Ian Bruce Eichner, the Cosmopolitan's original developer, defaulted on repayments for the construction loan. Deutsche had lent Mr Eichner $US62 million but later increased that sum and by the time of the default was owed about $US1bn.
In fact... Douche Bank..... forward thinking investment bankers got into gambling long before this legitimized opportunity ......of course it's always more fun to gamble other peoples money away though.
"Construction of underground dams in Canterbury could delay repairs to quake-damaged homes by up to two years.
Earthquake Recovery Minister Gerry Brownlee last month said the massive underground stone dams would be built in eight quake-hit areas, only two of which - Avonside and Kaiapoi - were identified."
Why is the media incapable of asking the engineering questions....what the hell is wrong with the media.....and the really easy questions too...like why are you throwing taxpayer money into holes in the ground when you could instead finance a new subdivision on stable ground?...doh
Anyone know where Gerry lives?
Go here to have a good laugh....http://www.stuff.co.nz/the-press/news/4374201/Remediation-will-delay-quake-repairs ........so called 'dams' to be 10 metres wide and ten deep....piece of cake....you're paying for it!
Dam that's a tough question Dogma...here's another....how do you con the public into thinking the dams will save them from the next 7.1.....and where do you expect them to live during the 2 friggin years it will take to eat through the 200 million....and who said it had to cost that much anyway....and what research has been done on these 'dams' and why can't they just organise and build a whole new friggin subdivision...oh we know the answer to that one....cos Gerry wants to have his cake and stay where he is and bugger how much the taxpayer is done for.
The point....who needs a point when there's taxpayer dosh to slosh...these 'dams' will give new meaning to the 'emperor's new clothes'...."look ma...we're safe...we got a dam...yes I know you can't see it...they say it's really there...they wouldn't tell us lies ma...would they?"
Landlords.co.nz : Most of the comments seemed moderate , restrained ......... Compared to interest.co.nz , anyway . But I do feel dirty now , .......... Gotta nip orf for another shower ,.......... I is all soiled and grimey after that excursion into the forbidden zone ........... Yukky poo !
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