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
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!
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.
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.
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
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.
Mark Hotchin court hearing - http://www.stuff.co.nz/business/industries/4458178/Mark-Hotchin-in-High…
Further to yesterdays discussions, cant see any meaningful welfare reforms happening when even the PM refers to them as entitlements! (@2:15)
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".
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…
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.
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.
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.
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