90 seconds at 9 am with BNZ

90 seconds at 9 am with BNZ: Federal Reserve holds rates low; Petrol price nearing NZ$2/ltr; Euro markets calmer; Riots in Rome

15th Dec 10, 8:42am by Bernard Hickey

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that US retail sales rose more than expected in November and confidence among small businesses in America improved to three year high.

However, early this morning the US Federal Reserve's Open Markets Committee released its latest monetary policy statement.

It kep the Federal Funds Rate on hold at between 0% and 0.25% and left its US$600 billion programme of bond buying intact.

It said the world's largest economy was recovering, but at a moderate pace.

Meanwhile, the New Zealand dollar fell on weaker than expected retail sales figures in New Zealand and news of a weaker economic outlook from Treasury.

Also at home, the price of regular petrol is headed towards NZ$2 a litre as prices rose again overnight to NZ$1.96/litre after the oil price's rise over US$90 a barrel.

In Europe, a Spanish bond auction was completed successfully, albeit with heavy buying by the European Central Bank.

In Italy Prime Minister Silvio Berlusconi survived a vote of no confidence, but protesters rioted in Rome.

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22 Comments

by Wolly | 15th Dec 10, 9:00am 1292356804

That fx graph line v the au don't look too bright....stick in a trend line and you have a ski slope...I'm told the BIG investment firm players are betting on the trend holding fast for now....seems it's all down to some poor decisions by past and present NZ govts....aided by Treasury and the RBNZ....how's the property ponzi economy today then?....have the banks kicked off with a new mortgage fishing advert effort yet....are the RE lot gearing up for a return to the madness and fat fees!

by Alex Tarrant | 15th Dec 10, 9:19am 1292357977

Good for exporters Wolly

by Wolly | 15th Dec 10, 9:40am 1292359222

Glad I kept most of my loot across the ditch!

by Vera Fayed | 15th Dec 10, 10:00am 1292360445

Morning Wally. How low would it have to go to tempt you to bring it back?

by Wolly | 15th Dec 10, 10:08am 1292360927

The reports I have from certain entities points to the mid to low 70s...but any move to shift it is countered by the rising returns over there and the safety through not being in the Kiwi since English confirmed yesterday this place is on the edge of a cliff until at least 2020 with the promise of another recession in the next decade.

Make no mistake....we are on that edge and the drop would kill the 'pretend and hope' ponzi economy.

by Christov | 15th Dec 10, 10:22am 1292361723

agreed Wally.....one would need to really think this through...beyond a short term position....not to mention just being part of a spike in the returning flood generating more false "market/economic data". I too hope not too many get sucked in to a fast buck as we are in a dire position and that needs to be clarified to all in sundry.......so at least if you know where bottom is every step would hopefully be an upward one.

Enough with the bulls*&t John Boy....Billy Bob...Bolly Bib your chickens are comin home to "roost"..the "s" is optional.

by michael | 15th Dec 10, 10:37am 1292362677

Yep, a currency that sells everything and buys nothing

by Spidy Sense | 15th Dec 10, 9:28am 1292358532

Time to send some money home..........

by Christov | 15th Dec 10, 9:32am 1292358748

Twoooooooooooo dollars a litre....can I get a 210...210210210210..210..can I get 220..220220220220220..220..can I get.......................

by steven | 15th Dec 10, 11:46am 1292366804

Yes you will, the only Q will be, when....$3 will be interesting....

The stinger is OPEC wont or maybe cant increase output.....if they have decided its a shot term blip then increasing output makes no sense and could cause a price drop below the wanted/fair price once over the blip......

regards

by Kate | 15th Dec 10, 12:17pm 1292368651

Somehow I don't even know that $3 litre would curb/change our behaviours - our preparedness as a nation to borrow to import oil will be the principle thing that bankrupts us I suspect.

I was speaking to an American the other day and cigarettes there are $5.00 a packet - whereas here they are $12.00 (twice the price!) but I'd bet that our consumption of tobacco hasn't dropped off to a far more resounding degree here than it has in the US.

Point being - we Kiwis sure know how to borrow to fund our lifestyle.

And I think we are seriously addicted to the freedom associated with private transport - perhaps even more so than Americans - we've certainly got more miles of road per capita population - and I'll bet we spend alot less tax dollars per capita population on PT systems.

by Gareth Vaughan | 15th Dec 10, 10:13am 1292361200

Mark Hotchin court hearing - http://www.stuff.co.nz/business/industries/4458178/Mark-Hotchin-in-High…

by Christov | 15th Dec 10, 10:23am 1292361834

hang the bas$%d...........where's my friggin posse n rope.

by Gummy Bear Hero | 15th Dec 10, 1:42pm 1292373772

Ease up there buddy , remember it's Christovmas .............. Put some tinsel around the scaffold , then hang the fecking lying thieving sod !

by rc | 15th Dec 10, 10:45am 1292363137

Further to yesterdays discussions, cant see any meaningful welfare reforms happening when even the PM refers to them as entitlements! (@2:15)

http://www.3news.co.nz/Government-borrowing-250-million-per-week/tabid/369/articleID/190868/Default.aspx

by Kate | 15th Dec 10, 12:52pm 1292370767

Well of course he does - you forget that he was raised in a beneficiary family.

Having been raised on welfare is a badge of honour if you're a National politician these days! Recall the recent debate for the Mana by-election candidates - Labour and National candidates had a major stoush trying to prove which one of them was raised in the more disadvantaged (welfare supported) household!

Matt McCarten butts in to point out the election contest wasn't about whose state house background was the most compelling.

See it here from 15.30min ;

http://tvnz.co.nz/q-and-a-news/q-mana-election-debate-3869123/video

Don Brash's by-line during his term was "I married a Singaporean" - John Key's is "I grew up in a State house".

by Gareth Vaughan | 15th Dec 10, 11:08am 1292364488

Some life on the sharemarket today, - A$740m bid by Fletcher Building for Crane Group - http://www.nzx.com/markets/NZSX/FBU/announcements/4459651/Proposal-to-a…

by Wolly | 15th Dec 10, 11:26am 1292365573

"Thirty staff at Carter Holt Harvey Woodproducts Kawerau Sawmill are losing their jobs.Their final day of work will be January 10 next year." harald

by muzza | 15th Dec 10, 7:49pm 1292395792

If Morgan Stanley are right about China poised at the point Japan was in 1969 and South Korea in 1988, we have a big positive player for next 10 years -that's their analysis and they are one firm haven't been far off the money with their calls and policies all through the crisis in recent times. China makes Australia the lucky country and Australia has good spin-off for Aotearoa.

by muzza | 15th Dec 10, 7:52pm 1292395931

by muzza | 15th Dec 10, 7:53pm 1292396027

by muzza | 15th Dec 10, 7:58pm 1292396315

oops, not sure what happened