Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the New Zealand dollar fell more than 1 USc to 74.7 USc overnight after the US dollar strengthened.
US longer term interest rates have surged in the last two days in the wake of US President Barack Obama's deal to extend tax cuts to America's rich and its middle income earners.
This makes the US dollar more attractive.
The US 10 year treasury bond yield rose to3.27% overnight after its biggest rise in almost 2 years. Investors are worried Obama's moves not to reduce the deficit make it more risky to hold the bonds in the long term.
Meanwhile, there is also talk that China will tighten monetary policy with an interest rate hike this weekend to control inflation.
The Dow was flat despite the fears of a Chinese rate hike.
The Australian dollar also strengthened against the New Zealand dollar after firmer than expected mortgage approvals and expectations of a lower unemployment rate reignited talk of an earlier hike in Australian interest rates.
Our Reserve Bank is expected to leave interest rates on hold at 3% when it announces its decision at 9 am today.
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Copper production is expected to reach 450,000 tonnes (500,000 short tons) annually. Financing for the project has come in part from the Rio Tinto Group and an investment agreement between Ivanhoe Mines and the government of Mongolia.
http://en.wikipedia.org/wiki/Oyu_Tolgoi_mine
http://www.midasletter.com/index.php/jp-morgan-behind-mysterious-1-billion-copper-buy-on-lme/
Hmm- I guess our “Cooper Wire Man” was right. Wally are some members of the small Mongolian government part of your family ?
Heres Ambrose http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8187476/Iceland-offers-risky-temptation-for-Ireland-as-recession-ends.html on the differing experiences of Iceland and Ireland. Iceland that didn't bail out the banks at taxpayer expense is doing much better.
"Jim Rogers expects interest rates in the US to go much higher over the next few years"
What will that do to rates in NZ?
" 'US government's inflation data is a sham"..........are we also being lied to here in NZ?
"The couple are credited by some as pioneers who helped to create the financial advice industry in New Zealand.
In 1988, Bradley, then known as Jackie O'Neill, published a book called The Winning Woman, which focused on financial advice for women." herald
yep...they sure did!
Hey Gummy, just got a letter from Timmy the Rat...he needs help sorting out some crook $100s and I thought of you straight away...you need good eyesight and a feel for new bills with no flaws...you have to promise to destroy the bad ones and send back the good. You in?
OK , I'm in ......... Having a problem getting the patina right on my last batch of $NZ 37 notes .............. Bloody cheap Fairfax 60 gsm paper wot I stole ....... I reckon I hate cheats and cheapskates ! .......
....... Where's these $US 100's hanging out , Wolly........... In Timmy's garage , or in Bennie's ?
I'll let Timmy the Rat know..expect a few bundles in the post....hey I just got this email from a friend:
This has happened on
Barrett Road
in New
Plymouth..
Sad, especially if you are inclined to 'help' people...
While driving on a rural end of the roadway on Thursday
morning, I saw an infant car seat on the side of the
road with a blanket draped over it. For whatever
reason, I did not stop, even though I had all kinds of
thoughts running through my head. But when I got to my
destination, I called the Police and they were going
to check it out. But, this is what the Police advised
even before they went out there to check....
"There are several things to be aware of ... gangs and
thieves are now plotting different ways to get a person
(mostly women)to stop their vehicle and get out of the
car.
"There is a gang initiation reported by the local
Police where gangs are placing a car seat by the
road...with a fake baby in
it...waiting for a woman, of course, to stop and check
on the abandoned baby.
"Note that the location of this car seat is usually
beside a wooded or grassy (field) area and the person
-- woman -- will be dragged into the woods, beaten and
raped, and usually left for dead. If it's a man,
they're usually beaten and robbed and maybe left for
dead, too.
DO NOT STOP FOR ANY REASON!!!
IF you can..... DIAL 1 1 1
AND REPORT WHAT YOU SAW, BUT DON'T EVEN SLOW DOWN.
"IF YOU ARE DRIVING AT NIGHT AND EGGS ARE THROWN AT
YOUR WINDSCREEN, DO NOT STOP TO CHECK THE CAR, DO NOT
OPERATE THE WIPER AND DO NOT SPRAY ANY WATER BECAUSE
EGGS MIXED
WITH WATER BECOME MILKY AND BLOCK YOUR VISION UP TO
92.5%, AND YOU ARE THEN FORCED TO STOP BESIDE THE
ROAD AND BECOME A VICTIM OF THESE CRIMINALS.
THIS IS A NEW TECHNIQUE USED BY GANGS, SO PLEASE
INFORM YOUR FRIENDS AND RELATIVES.
THESE ARE DESPERATE TIMES AND THESE ARE UNSAVOURY
INDIVIDUALS WHO WILL TAKE DESPERATE MEASURES TO GET
WHAT THEY WANT."
"The Government says it will introduce reviewable tenancies for new State tenants and ask community organisations to help with providing more housing, as it struggles with waiting lists for state houses." nbr
This problem would be a good deal less serious had the govt moved two years ago to bring an end to the bubbles...sadly the latest statements from Bollard promise more cheap credit will flow into the bubble for longer...while he expresses a wish that property become affordable, his policies promise the exact opposite because the population remains dead keen on buying and selling property at a time when deposit rates are crap and the NZX listed companies are paying out poor divs.
On top of the ocr damage, we have govt policy feeding a rent subsidy to landlords and allowing landlords to deduct interest on property mortgages as a cost of doing business. The home owner next door does not get this sort of benefit.......and they pay the tax that goes to the landlord.
Man -use your 4WD and other smart guzzler's as much as you can - now. In January/ February 2011 driving for fun is over - rude Crude could be over US$ 110.-
Drive twice to work now, so you compensate and don't have to after New Year and take a taxi going shopping, so he's paying for the price increase - be clever man !
Some infos:
http://www.parliament.nz/en-NZ/ParlSupport/ResearchPapers/4/6/a/00PLEco10041-The-next-oil-shock.htm
Yep - those who tend to be tribeless may also be speechless, to say nothing of transportless.
I think something else will happen - Clint Smith touched on it - that every time oil gets to a certain price, we get an instant recession, followed by an attempt to restart, etc etc.
How long that one goes on before the penny drops (ha) is anyone's guess, but I think at some point, there will be a general realisation that debt can't be repaid.
Then it gets interesting.
Wake up John Key...the banks are giving you the big finger...time to kick the chair out from beneath them John...time to be a Prime Minister and not a wee toad...smash their bloody property bubbles and do it now.
"The Government has introduced legislation to establish a $1 billion package to fix leaky homes – but has not reached a deal with banks to fund the loans.
Under the bailout scheme the Government and local authorities will finance 50 per cent of repair costs. But the package is dependent on homeowners being able to borrow the rest from their banks.
However, the Government and the Building and Housing Department have yet to agree a deal with the eight main retail banks, which are reluctant to lend against damaged properties without a 100 per cent guarantee from the Government.
"The current proposal falls short of how a guarantee is commonly perceived, in that what's being proposed would not cover 100 per cent of any loss, so it would be more like a loss-sharing arrangement between government and banks," a spokesman for the Bankers Association said."
herald.
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