90 seconds at 9 am with BNZ

90 seconds at 9 am with BNZ: Sept OCR hike a possibility now after weak GDP; Landcorp/Tainui bid for Crafar Farms?; Merry Christmas for MPs; Best wishes to all

24th Dec 10, 8:59am 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 the contraction in June quarter GDP has nudged down wholesale interest rates slightly. The New Zealand dollar wobbled but has held up well overnight.

Economists are now saying the weak economy may allow the Reserve Bank to keep the Official Cash Rate until the middle of next year at the earliest, with some saying there is the potential now for a delay until the September quarter.

Elsewhere, the receivers for Crafar Farms say they are still open to discussions with Natural Dairy despite the rejection of its bid by the Overseas Investment Office and the government.

Other bidders are now circling, including suggestions that the government-owned Landcorp and cashed-up Waikato iwi Tainui could launch a joint bid for the farming group based in the central North Island. Although any price is now expected to be much lower than the NZ$213 million agreed by Natural Dairy.

Meanwhile, there's great Christmas news for MPs and those in the senior levels of the public service. MPs pay will increase 1.4% and be backdated to July, while the Prime Minister's salary will increase to NZ$400,000 from NZ$393,000.

Opposition leader Phil Goff's pay rises to NZ$250,000 from NZ$243,000. Judge's pay will rise around 4%, while the Chief Justice's pay rises to NZ$453,000, more than the Prime Minister.

Finally, this was the last 90 seconds at 9 am for 2010. We restart on January 17.

I'd like to wish everyone a Merry Christmas, including the good folk at Bank of New Zealand for sponsoring this video.

Thanks too to Amir Bashir, who has done the work behind the camera this year, along with all those who have contributed to Interest.co.nz through the year.

Thanks too to The Warehouse, who sold me this silly hat for just NZ$2. I got my bargain for the year, and haven't contributed too much to Chinese GDP in the process.

No chart with that title exists.

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24 Comments

by Les Rudd | 24th Dec 10, 9:26am 1293136004

Some might have thought a Che beret to be appropriate, however instead, maybe like a more whole economy focused monetary policy, wear the fox hat? Cheers all, Merry Christmas, Les. www.mea.org.nz

by printer8 | 24th Dec 10, 9:38am 1293136732

Many thanks for all your informative comments throughout the year. Have a great Christmas and holiday break.

by Rob of the North | 24th Dec 10, 9:50am 1293137418

You're a dag, Bernard..!

Happy Christmyth to you and yours and thanks for being the best entertainment channel ( and info) in NZ in 2010...

by Bernard Hickey | 24th Dec 10, 10:03am 1293138209

I have fun in my work. If only that could be measured in GDP we might not be in a double dip recession, cheers Bernard

by Justice | 24th Dec 10, 10:29am 1293139740

A santa hat for $2! What a fantastic indicator of Chinese economic dominance

by FCM | 24th Dec 10, 10:34am 1293140040

Portugal just got rating downgrade, NZ in the New year. Ministers get a pay rise, meanwhile thousands of cantab's having xmas in tents and Garages because EQC can't get there processes together, Gerry Brownlie nowwhere to be seen except buying and extra turkey for xmas with his Bonus, John Key heading away to his bach thinking what a good job he has done this year. And the Chinese are comming with all there dosh to buy up large.

But Merry Xmas anyway to all.

by martinv | 24th Dec 10, 10:35am 1293140100

No news until the 17th Jan! Eek, the world might end before then. ;-)

Actually, the handbook 'How to Rule the World' suggests invading countries etc. on a Friday. That way it's Monday before anything makes it into the papers.

...Merry Christmas all.

by Kunst | 24th Dec 10, 10:53am 1293141223

NZ$ vs US$ 0.8/ EURO 0.6 by end of January 2011 - a cork in the ocean - with the AU$ a popular currency on a high.

by monteiths | 24th Dec 10, 11:53am 1293144801

Very convenient time to do pay rises. Right before Christmas break. Country can't afford to pay teachers more but can give pollies and judges a fair whack on top of everything else. Sorry pollies and judges gave themselves a fair whack more. They rolled the NZEI union for bugger all. PPTA hopefully will fight more. If backbenchers went back to parity with teachers then I would be happy. But by giving themselves an extra '000 each... Bollocks. Total bollocks.
I'm not keen to see teachers get a rise when society itself is sick, but I'm even more not keen to be told by the man we cannot afford it whilst they themselves are getting more.

Revolution.

by Gummy Bear Hero | 24th Dec 10, 12:16pm 1293146160

A Short Movie : " Morning in the Wild Weldon Saloon "

: the scene , a smokey dingey room full of cowboys , swapping stock and Dom Perignon .....

...... the good ( Fletcher Building , 16 trades worth a total $ 2 977 770 ) ,

...... the bad ( PGG Wrightsons , 71 trades worth a combined $ 475 543 ) ,

......and the ugly ( Allied Farmers , one trade , worth $ 397 )

Dedicated to the NZX .

by Cleo | 24th Dec 10, 12:17pm 1293146220

Oh of course the salaries for MPs and judges is set by an independent commission - it just happens to be employed by the goverment. They always use the excuse about how we have to pay well to keep people - cant say I have ever heard of a judge leaving. Once you are a judge, what the hell else are you going to do??? However, there are a lot of doctors, nurses, radiographers etc who ARE all leaving. And whats being done? Govt says we have no money to pay them. We all have to tighten our belts of course blah blah blah but yet I have never seen MPs tightening their belts! (Would love to see Gerry Brownlee try......)

Timing just before Christmas is also good as most people cant be bothered to argue it for long, everyone is just looking forward to getting away.

Having said that I will join in with everyone else and say Merry Christmas and Happy New Year and all that to you all. I have been a latecomer to the wonderful world of interest.co.nz, and it took me a while before I would add any comments! But its been a great addition to my daily read, so thank you Bernard and the team, and thank you to all commenters out there. The debates are always good!

by Learn to Socia… | 24th Dec 10, 1:15pm 1293149710

When you pay peanuts, you attract sociable, well motivated, hard working, honest monkeys. When you pay in filet steak, caviar and crayfish, you attract the sociopathic, lazy, self-serving, greedy, bloodthirsty ferrets and weasels. Bring back the monkeys to run this country- people who require just enough to live comfortably and who do the work because they love what they do, are motivated by good ethics and want to serve the community.

I don't have a problem with the Prime Minister getting $400,000, but I think that that should be the top rate of any publicly funded person.

I read that up to $75,000 per year, an increase in wages will help a person feel happier. After $75,000 pa, an increase in wages does not help. Why on Earth would anybody think that they personally were worth $500,000+ per year to the community?? It is like going into McDonalds and ordering 50 Big Macs and sitting down and eating them all at one time. disgusting (IMO)

by muzza | 24th Dec 10, 12:25pm 1293146744

Montieths, a friend in NZEI told me they didn't get rolled by the government, actually they did a dirty on PPTA. NZEI ageed to a wage settlement to get money in the hand now, but have retained the clause that promises them whatever PPTA might subsequently get. So, if secondary teachers, probably at great subsequent effort and expense next year get a bit more,then primary teachers get the top up! Primary teachers come out smelling of roses and have done very little other than NZEI being pretty street smart.

by Basel Brush III | 24th Dec 10, 12:38pm 1293147537

Being the season for silly hats perhaps we could award some (preferably notional ones that cost zilch)

First to JK and BE for keeping the Economy and the Public wondering where we are being steered.

Captain's peaked cap to JK worn with the peak reversed to keep his neck protected from rogue pirates and a beany for ships engineer BE. He can wear it in his bunk 'cos he is not much use down in the engine room.

by Bobby | 24th Dec 10, 1:00pm 1293148848

Thanks Bernard for keeping interest.co.nz web site up and running all year. Also thanks to Wolly and co for all the posts. Merry Xmas to everyone except the Pollies and their like. Greedy pigs!

by monteiths | 24th Dec 10, 1:32pm 1293150730

I know about the NZEI's "accept a shite offer and piggyback on the PPTA". I wouldn't call it street smart though, I'd call it either a typical union dumb, or NZEI too scared to negotiate for the reduced class sizes or teacher non-contacts.

It just means that it makes the PPTA claim will be much more difficult, and that they have very nicely played into the Govts. hand by allowing the Govt. to start playing the two unions off at each other. Divide and conquer.

I think NZEI does a bloody hard job, I think they were worth more than 2.75% and a $300 handshake. I think its a sign of our times that even Unions shonk each other. I think that 30+ kids in a classroom doesn't work anymore, and that NZEI should have fought for that rather than bugger all.

What scares me most is that their people voted for it, that they accepted an offer based on the fact they have pay parity or entrenchment rather than fighting for what they apparently value. If anything it showed that it is just about pay, and that they are now going to be regarded as easy to break in the future by the Govt. and cowardly and backstabbing by the PPTA.

I am getting closer to wanting to see the unions totally broken and workers rights flushed down the plughole and finaly for people to say ENOUGH.

Bob says it best.

"While one who sings with his tongue on fire

Gargles in the rat race choir

Bent out of shape from society’s pliers

Cares not to come up any higher

But rather get you down in the hole

That he’s in"

by neili | 24th Dec 10, 1:51pm 1293151880

Shows how far PPTA are out of line with public sentiment by demanding 4%.

by Number 6 | 24th Dec 10, 2:10pm 1293153026

Both Portugal and Hungary downgraded today.

"Hungary's economy minister said the downgrade was regrettable but not surprising"

Bill English had better spend a few quiet seconds this Chrstmas break getting his response ready.

by Matt S | 24th Dec 10, 4:26pm 1293161193

Well merry Christmas everyone. Thanks Bernard and co for the great website, and to all the great regular posters on here that make it worth while and interesting.

Till next year.

Matt S.

by michael | 25th Dec 10, 2:12am 1293196371

Merry Christmas to all.

by Nicholas Arrand | 25th Dec 10, 8:58am 1293220692

Merry Christmas to Bernard and the Boys, and to all who have enjoyed reading what they strive so well to provide to us on a daily basis.

"Let's hope it's a good one; without any fear..."

Best, to all and their families ~ from Nicholas and his.

by muzza | 25th Dec 10, 11:29pm 1293272990

Hugh I realise you are on a crusade but you are not giving enough balance to the factors at work in NZ at present. Guess we can see how things pan out by this time next year.

by Wolly | 27th Dec 10, 6:59am 1293386390

How wonderful....grow your own and save

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10696723

by Kunst | 27th Dec 10, 9:07am 1293394050

Wonderful and now NZfarmers stepping in delivering milk, meat, fish, octopus, eggs, vegetable, cheese, fruits, berries, olives, nuts, wine, spaghetti, etc. to daily (weekly) community markets and who bloody needs the big supermarkets from “Aussie” and the “consumption temples” ?

Good morning, Mrs. Suneshine - we meet our community people again for a chat – wonderful ! In front of a cuppa - show me your exclusive NZmade "shopping bike" your Ferrari "Two wheeler" - Olly ? You know Olly - the property stallion.