Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that China's decision not to tighten monetary policy with a rate hike over the weekend has boosted global stocks and lifted both the New Zealand and Australian dollars.
Economists had expected Chinese authorities to tighten monetary policy over the weekend to cool the economy and an inflationary surge.
But the decision not to hike rates -- as least for now -- has given those economies that benefit from strong Chinese growth a reprieve. China is Australia's largest buyer of exports and New Zealand's third largest buyer.
The Australian dollar rose to 99.8 USc and the New Zealand dollar rose to 75.7 USc, although it remains relatively weak vs the Australian dollar, which is helping to dampen any rise in the Trade Weighted Index. The Dow rose more than 40 points in late trade. See our interactive chart below.
Meanwhile, BNZ economists have warned that the September storms and early signs of a drought could reduce agricultural output by more than NZ$1 billion. See the full research note here.
Later today the government is expected to post a deficit approaching NZ$15 billion when it releases its half year fiscal and economic update at 1pm as slower economic growth drags on GST revenues. See more from John Key's comments last night.
The outlook sets up a tough election year budget for the government as it strives to avoid a credit rating downgrade from Standard and Poor's.
Meanwhile the new Auckland Super City has agreed the first rate increase under the amalgamated city is likely to start at 4.9%, almost double the underlying inflation rate.
New Mayor Len Brown told RadioNZ this was well below the initial 8.9% suggested by council officials as it becomes clear the Super City will not save as much money as expected.
No chart with that title exists.
30 Comments
'Clear the super city won't save as much as expected'. What a surprise!
Hahahaha, you beat me to it.
Bet they will be saving money by next year though as part of austerity measures.
yeah.. youbeat me to it, too...i don't know why we keep letting these mealy-mouthed bastards , like LenBrown,etc con us up....we kiwis are naive in our political beliefs but i still think john key is the man and is calling as he sees it!
Not only did it not save you money, its now going to cost you money. They wanted a %8.9 increase but settled for %4.9. They are spreading it over a few years so expect %4.9 for the next few years. Now lets get that rail system going. I know how these peoples tiny brains work.
If its 5% to get asset(s), well Ok.....if its 5% more for day to day operating costs thats bad news......
regards
"New Mayor Len Brown told RadioNZ this was well below the initial 8.9% suggested by council officials as it becomes clear the Super City will not save as much money as expected."
Is anyone really surprised? The new council needs 8.9% more money cause it won't save as much as thought. WTF, save more than they thought? Up is down and black is white in Kiwiland these days.
After being rammed through against the peoples wishes by arch hypocrite (anti big Government and politicians rorts campaigner) Rodney Hide we find that bigger is not better, it just costs heaps more. Brilliant! Thanks Rodney.
Great one Rodney.......great to have such ppl of business acumen at the helm...........
"We are fixing Auckland's broken governance under budget and ahead of schedule. We are also delivering significant annualised savings."
uh huh....
What part of 4.9% but we'd like 8.9% is a "saving" ? is he (rodney) a cretin that his maths are that bad?
http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10…
"The irrationality and bullying tactics – have these people never heard of MMP, and the spirit of co-operation and compromise that it entails? – begin at the top of the Act pyramid.
But we knew that already. Hide, is in that respect. the perfect candidate for the intolerant business lobby he so dutifully serves..........trying to plumb the mind of the Act Party is a path to madness"
Couldnt agree more....
http://www.scoop.co.nz/stories/HL0908/S00182.htm
So the right wing nutters are gathering to plan a new right wing party as ACT isnt doing it for them.....as if another party filled with similar loons will do any better......probably better than the (probable) new Alliance party mind you.....
regards
Rodney Hide – he’s no more then an opportunist - not a leader - people get your self politically educated.
PM - for how much longer can we afford to export young, talented, educated Kiwis - our future - and import our quality infrastructure needs - neglecting the real economy - productivity ?
E.g. PM why is your minister Steven Joyce allowed to import light rail systems for Auckland/ Wellington ?
--
PM John Key warns budget worse than forecast and 'at outer limits of what we'd regard as acceptable'
PM - because of years of government failure and you and your minsters of not having the courage implementing a visionary approach.
PM - how can NZs’ working class – the majority of the population afford significant price increases of basic needs like food, health, housing, education, transport etc. coming soon ?
In the current worldwide environment, where events and development often are unpredictable - in some cases dangers - PM how can you carry on with the same old pattern of governing this country ? Isn’t time for profound changes - a tailor made NZeconomy ?
PM - in other countries they have 4 million engineers making good money, exporting high tech products - we have 4 million cows, coal mining - destroying our health/ environment – Bravo ! What a mismanagement of our economy - selling houses to each other and tons of NZyoungsters filling up shelfes in warehouses, trucking up and down the country - with stop signs holding up by Kiwis digging holes for more NZroads for goodies & tourists to see the beautiful water’s and clean greenNZ !
What a “Patchwork Economy” !
...and PM - how can "you" possibly be - the Financial South Pacific Hub - with 2.2 million cows roaming the NZcountry ?
…and PM - listening to the daily often stupid “Parliamentary Kindergarten” - parties arguing with each other about politics - wasting time - why does the government not call for an emergency assembly of parliament aiming for vigorous changes ?
Considering the worldwide developments and it's consequences, It is time for our parliamentarians working together finding solutions - preparing, planning and legislate for a better New Zealand.
In 45 minutes time at 1.00 pm all will be revealed .
We will know more or less how much these drunken sailors have over-spent what they dont have .
And God help us, because our current debt is already as bad as Ireland .
We need to get the country working again , get people off the benefit and into paid work , even if its only 20 hours a week answering phones at the local authority or cleaning a hospital or clinic AND phase out WFF the family support system which is fast becoming a crutch for many and which we cannot afford .
Free health care for unemployed , free health disability grants for people who are able to work , interest free student loans, Family handouts, free subsidies for musicians , free this and free that.
Just remember nothing is 'free' and someone somewhere is paying for everything that is supposedly free .
Ho hum...govt borrowing set to rise to 350oooooo every friggin week.
Key and English run with tweak fiddle spin and hope.
Outlook now for a certain downgrade.
Equals raised borrowing costs.
Leads to bigger fiscal hole.
Brings reduced activity
so lower revenue
less spending
fewer jobs
misery
end.
If they are going for electrified rail before the oil shocks hit, then an above-inflation rise is perfectly acceptable - for that, and any other get-ready initiative. Growing more of the same (car-based suburbs and motorways) is not.
Scarcity at the margins is what will drive rates and taxes fromm here on in, and if you went 100% private, that wouldn't change one iota. Exponential increases had to become the norm, what amazes me is the duck-shoving, blame-shifting, and denial.
Jim Mora - in the top class a year ahead of me at OBHS - just hammers on about Len Brown's 800$ dinner. I presume this has something to do with a future in blue politics, but the real issue coud have been discussed yesterday - the 'why' of percentage rates rises.
I must be the season for Bah Humbug......
Agree with the electric rail network. Oslo's under/overground urban rail (Tbane if you want to google it) is the perfect example of what Auckland needs.
Trouble is it needs power. Hydro is the obvious answer (as it is in Norway) yet them greenies dont want to allow hydro projects to go ahead. Could you imagine a rail network run off windmills???
good point.
If we are happy driving cars with a lead-acid battery apiece, what's a couple of rivers?
Actually, we need the bigger debate - population curbs, consumption curbs, absolute limits to be kept within - then work out how many river sacrifices are justified.
I suggest we should limit ourselves to live within what we have now. It has to happen at some point, better earlier.
Too many unrequited, insecure folk out there for that to happen though, methinks.
"Almost half of the surveyed Aucklanders said they had been stuck in a traffic jam for an hour or longer in the past three years."..harald
and 99% of them said they kept their combustion engines running. Harrrrrrrhahahahaha
Roll on the all electric buzzboxes....
only 11% of auckland car drivers , drive home after 6pm...the rest before..maybe there's an angle in there?
the bigger picture, Rob, is: Home from what?
So many folk don't question what will happen post peak, but less 'work' is a given.
Are we all prepared for the waves of happy blather set to flow from the second English lets the fiscal deficit cat out of the bag at 1pm.....better don your life vests and get the flares ready for use because this is going to be one humdinger load of BS and spin done up in glossy GDP projections and sugar coated with promises of a surplus in our time....
You'd think we'd be better off if he just told it like it was, that there are tough times ahead in the short/medium term while the excesses of the last decade (or 2) are worked out of the system.
Kiwi$ just had its throat cut on the au cross.....
Perhaps this is the reason!
"KiwiRail's own heavy engineering company, Hillside Workshops, has lost out to a Chinese company for the job of building 300 flat deck wagons to replace New Zealand's ageing wagon fleet".stuff.co
maybe it's the "pansy wong" factor ...time to upsticks and chop them up?
Wolly, you seem relatively upbeart today, considering how downcast you can get about things. You getting that National Super payment now?
I'm having an extended lunch break today but must back to work in a while.
You should be at work Muzza...how can I expect the pension dosh if you lot don't get to work.
I see Bill the borrower has plans on another 10.5 billion of debt...perhaps you should take on an extra job.
I'm still at lunch, Wolly. I work at making sure the others are working, and that usually works well, although I've just found out my son has taken the afternon off for a bowls tournament. He's getting more serious at bowls than making more income! Oh well it's summer now, but then it's snowboarding in the winter, so nothing has changed all year.
1.34pm and still at lunch.....no wonder the nation is stuffed.
Actually now almost 2.15 but finishing lunch time soon.
"Niue, 2500 kilometres northeast of Auckland, is home to just 1200 people and receives $21.5 million a year in New Zealand aid - around $18,000 per person.
Niue was New Zealand's prize for joining the United Kingdom in an unsuccessful attempt to suppress South Africa's Boers." stuff.co
See....we've had fatheads governing the country since way back.
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