Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that South Korea's President is threatening "enormous retaliation with multiple firepower" after North Korea's artillery attack on a South Korean island overnight.
North Korea fired more than 100 artillery rounds into fishing villages on the island, killing two soldiers and wounding dozens.
These were the first artillery attacks on the South by North Korea since the 1953 armistice.
They also follows the discovery of a massive new uranium enrichment complex in North Korea with more than 2,000 centrifuges, built in defiance of UN sanctions after inspectors were kicked out.
Global financial markets fell on the news of the North Korean attacks and fears of a wider conflict on the nuclear armed peninsular.
The Dow was down more than 150 points in late trade.
More concerns about the spreading European crisis also dragged on market sentiment. As did news of weaker US existing home sales.
And news that Chinese banks are nearing their quotas for new lending for the year as the government tries to slow a hot economy down.
German Chancellor Angela Merkel warned of "serial European bailouts" if the debt contagion was not limited to Ireland.
Portugal and Spain are seen as next in line, with any Spanish implosion seen as a euro-threatening event. Also, Ireland has put its banks up for sale.
Ireland's government is in political turmoil with both independent MPs and the Green party threatening to bring down the government before a new austerity budget is enacted.
All this aversion to risk on global markets drove the New Zealand dollar down to 76 USc.
No chart with that title exists.
17 Comments
"The firm would buy frozen New Zealand mutton and sell it on to customers as Welsh lamb".
http://www.independent.co.uk/news/uk/crime/ecoli-butcher-sold-rotten-meat-for-years-2141787.html
Alarm bells anyone?......hello.....anyone there?
Can't stand the thought of you sitting around in your pensioners flat, all lonely on here, Wally..so here's something to munch on..but make sure you use a straw ?!
After a couple of months of great flying conditions for US equities, it may get bumpy for a while. Expect the S&P 500 to trade in the 1100-to- 1300 range, but the index could be stuck in the lower half of that range for a while. The most important potential source of turbulence in equity markets may be the actions of monetary policymakers.
- When we look around the planet today, we see policy makers moving in opposite directions. The reason is the heterogeneity of the cyclical positions of big economies. The most important cyclical divergence appears to be the path of consumer prices in China and in the United States.
- The People’s Bank of China moves to increase reserve requirements for Chinese banks and the associated reduction in available credit to the private sector is a vector working in exactly the opposite direction as the Federal Reserve’s new program of large-scale asset purchases.
- Fiscal policy may also come to the fore in the next few weeks. If elected officials in Washington get serious and start to make tough decisions about what entitlements will be cut and whose taxes will be increased, the outcome could be surprisingly positive for US equity investors.
slurp, slurp..have a good day Wollster the pollster!
Time to be very carefull? On the 9th of November it looks like a North Korean Submarine launched a Missile off off Los Angeles.It was downplayed for obvious reasons.The predictive tool "Web Bot" stated that.."From the 8th 0f November to the 14th" would be the start of a 63 day cycle with the impact of up to a hundred times the global effect of 9/11...The tool uses predictive lingustics too "Spider" the web for key words, originaly it was for predicting the Stock market, but it seemed it could do a lot more.It has a hit rate 50% more than chance.The bigger the event the longer out the linguistics suggest an upcoming event....why? no one knows but its been Scientificaly validated.Anyone interested take a look at "Cliff Highs" site at " Half past human"...It might be wise to factor in some protective stategies.Because some of the hits have been more than interesting.
NZ Oil & Gas has popped up 4 cents in early trade on the NZX , to 91 cents . Yesterday's 30 % plunge stripped $ 130 million off the company's market capitalisation . And this equals the value of their stake in Pike Piver Coal . The market participants are saying that they feel PRC is valueless now . PRC remains suspended from trading .
Too true
Obviously the focus at present is on the humanitarian aspects, and the apparent tragedy.
But eventually someone is going to need to start talking about the future for PRC. I get the impression that they have been running close to the wire economically anyway. The risks of running the mine in the future just look beyond comprehension.
It has other implications for NZ. eg if the Govt wants to readdress mining in the conservation estate, this shows the limitations of "surgical operations". I understand that PRC had limited access options in the park, and this kept the range of access shafts etc to a minimum.
Also, what will this mean for the small investor in NZ? Some were lured into PRC as an entrepreneurial export-oriented option. Hands burned again. So will this encourage us to scurry back to the safety of property, as we have a depressing habit of doing (encouraged by Govt policy, of course).
It would be interesting to see Brian Gaynor's take on it, but I guess commentators will hold back for a while, to show sensitivity.
On a different note: God it must be awful for those families. I am all uptight about it sitting in my office in the North Island. What must those families be going thru?
Cheers to all
is this the un-raveling?
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/815546…
"Yields on 10-year Portuguese bonds jumped to 6.9pc, replicating the pattern seen in Greece and Ireland just before they capitulated and turned to the EU and the International Monetary Fund.
Spreads on 10-year Spanish bonds rose to a post-EMU record of 233 basis points over Bunds, pushing the yield to 4.87pc. Spain's central bank governor, Miguel Angel Fenrandez Ordonez, said the contagion had spread rapidly to the eurozone periphery and "made itself felt" in the Spanish debt markets. "
So Ireland sucks out the $, next is Portugal by the look for it....then Spain unless Greece makes an outside run...if Spain blows then so does Italy and the EU goes t*ts up....end of game. Next qulifying round the 2nd Long Depression...
Nice Xmas present.....not....
and GBH thinks things look grand and on the up and up.....
regards
Hmmmmmmm , gonna have to double steven's Anti-Hickeystamine medication !
Wow , that's a whole lotta gloomsterisation right there old buddy .............. Hey steven , rummage through the economic history books , and point to me the extended period where everything was smooth sailing ............ Admmittedly there seems to be more storm clouds hovering around currently , than at some periods , and yet mankind plods on , irregardless ............... The horrors of World War l , the Great Depression , WWll , 9/11 , Disco Music .............. All eventually overcome , and left behind .
anonentity..this is the most probable source of your Missile...http://www.liveleak.com/view?i=790_1203635874 although an earlier incident probably for the same reasons albeit to someone else's spy satellite .....can't have renegade sheriffs in space you know...
Its heading into winter up in korea. their climiate and geography is bad for growing food at the best of times....if they had a poor harvest they'll be desperate. nth.korea is probably horribly low on food and looking for some international aid/bribes to put their weapons away.
seoul's an easy target too....30 million people only 50kms or so from the border.
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