Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that financial markets have celebrated suggestions that the European Central Bank (ECB) may 'go nuclear' in order to stop the contagion spreading through the European sovereign bond markets.
This would involve the ECB aggressively buying the sovereign bonds itself to push down yields and avoid the sort of debt spiral that forced Ireland to ask for a bailout.
The Dow rose more than 250 points and the S&P 500 rose 2.1%. This boosted appetites for riskier currencies such as the New Zealand dollar, which rose almost a full cent to around 75 USc in early trade.
Hope for a QE II-style intervention by the ECB was reinforced by comments from ECB President Jean Claude Trichet, who warned financial markets not to underestimate the determination of European authorities to defend the euro. This followed the spreading of the Irish bond crisis to Portugese, Spanish and finally Italian bonds. The euro also rose on the talk.
The ECB council meets tonight. Spanish and Italian bond yields dropped on hopes of a major ECB bond-buying move.
Good economic news from America, China and Britain also boosted sentiment.
Manufacturing surveys in China, the United States and the UK were better than expected and US jobs growth was also better than expected.
Finally, the US Federal Reserve has released details of which banks it bought toxic mortgage bonds off in the crisis of late 2008. It turns out European banks were the major beneficiaries of all the US Federal Reserve emergency cash.
Also, Australian economic growth in September was slightly weaker than most economists forecast.
(Updated with links and detail on euro, European bonds, Aussie GDP)
No chart with that title exists.
12 Comments
A "fifth pillar" for Australian banking? http://www.businessday.com.au/business/swan-plans-to-create-a-fifth-ban…
Isn't it wonderful what an orchestrated littany of survey BS and political lying can do!....so the ECB follows the Fed toward having toilet paper money.....now how long will it take for inflation to rear its ugly head.....not long at all.....and then what?.....rising rates to bash the nasty serpent back into its box...at what cost to fools who owe mortgage debt to banks being saved by the govts that are being saved by the ECB....and at what cost to the pisspoor growth.....and employment....and fiscal deficits across Europe.....oh what an evil thing debt can be.....quick rush down and get some of that BNZ mortgage debt on special before the rates rise...you don't wanna miss out!
Officials dispute value of subsidies to film industry
In the February paper, officials argued it was not clear if the assistance provided significant economic benefits.
In terms of cost it sometimes exceeded support for tourism, one of the largest export earners, and support for private sector research and development of $47.4m "where the evidence of benefits to the wider economy is strong.
Peter to Fran: "...got the pork honey, now let's get back to deciding where to park that jet..."
Sorry to harp on about this, but a whole country prostrating itself in front of some Hollywood fat cats really is something to behold.
"Dr Angus, whose term as commissioner ends in the new year, said in a statement yesterday he was "uneasy" about a working group proposal to tie sole parents' benefits to their children's health and school attendance.".........and people wonder why we need change in Noddyland!
Julian Assange is the scourge of international diplomacy, the subject of an arrest request by international police group, Interpol, and a man accused of numerous sexual crimes.
His internet whistleblower site, WikiLeaks, is soon to add his new target, the US banking industry, to his list of enemies.
Assange now claims to have plenty of dirt on at least one major US bank and has assured the media that the contents will be revealed shortly.
Advertisement: Story continues belowThe news sent the US banking industry into a tailspin yesterday, with the finance community guessing who the subject might be.
Assange told Forbes magazine to expect the revelations early next year and that the megaleak would ''give a true and representative insight into how banks behave at the executive level in a way that will stimulate investigations and reforms, I presume''.
He said he is ready to unleash tens of thousands of documents that could ''take down a bank or two''.
The market immediately took bets that the Bank of America was the target, causing its share price to take a hit.
University of Calgary Professor and senior advisor to Canadian PM is calling for assassination of Assange and "I would not be unhappy if he disappeared", on National TV:
http://www.youtube.com/watch?v=bqtlafdoH_g&feature=player_embedded
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.