Holiday briefing for Friday, December 31, 2010

Holiday briefing for Friday, December 31, 2010

It may be the holiday break, but in the rest of the world, business goes on.  Here is a quick snapshot of some key news and data overnight.

Oxford Finance has had its credit rating downgraded from investment grade BBB-, to speculative grade BB. Apparently it is because its parent, lines company Electra, is considered weakened by having a finance company as a wholly owned subsidiary.

The SFO has launched a probe of the Bublitz-owned Mutual Finance after getting info from the receiver and Companies Office.

We are being loved-to-death by currency traders - we are at an all-time high against the pound, a three year high against the euro, and rising against the US dollar. Another commodity bubble is being blown.

Israel has discovered huge new gas resourses, making it a powerhouse energy supplier of the future.

The lucrative business of polluting - in two years the next stage of the ETS will come into effect and could be a system "massively abused".

 There is a huge rush to issue covered bonds worldwide - in fact US$356 billion were issued in 2010, and that's without the US in the market.

     8 am       ---   52 week  --  
    Today   yesterday   high low  
     --------    --------   --------- ---------   
FX rates NZ$1=US$ 0.7692   0.7660   0.7964 0.6584  
  NZ$1=AU$ 0.7593   0.7530   0.8212 0.7408  
                 
Gold in US$ 1,406   1,412   1,421 1,058  
  in NZ$ 1,825   1,844   1,877 1,507  
                 
Copper in US$ 9,465   9,499   9,499 6,091  
  in NZ$ 12,305   12,401   12,671 8,951  
                 
Crude oil in US$/bl 89.34   91.29   91.45 70.15  
  in NZ$ 116.15   119.17   121.36 101.30  
                 
US Treasuries 30 yr bond 4.41%   4.53%   4.78% 3.61%  
                 
Dow DJIA 30 11,569   11,617   11,617 9,614  
                 

 Have a safe and happy New Year's eve. We hope your 2011 is [even] better than your 2010.

See you next year, when we will be expanding our service progressively throughout the year, with the first major addition in February.

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15 Comments

No wonder 1 in 4 NZ'ers plan to take an overseas holiday in the next 6 months.

Are you a travel agent?

I too would buy some of this covered bond shite knowing I will be in the box seat when the refi time comes and the Kiwi banks face demanding higher rates from households...easy money for me...I'm setting the price because demand exceeds supply several times over!

Meanwhile the mortgage serfs in NZ shuffle ever closer to the cliff which they cannot see and are not being warned about....something Bollard is responsible for!....well you don't really expect the banks to issue warnings do you....

011 arrives along with govt promises of growth in our time...but without the warning that said growth MUST bring higher rates...which will mean a rush of mortgagee listings and the banks all a flutter as to how they can keep the bubbles inflated and save their covered bond arses.

Today: January 31? Only 11 months left in 2010?

I guess it's been a long year.

It's December 31 where I live ........... But my teachers did tell me that I was a bit slow ............. How did the  New Years Eve parties go , guys ? ........ Jan. 31 , 2010 , huh !

TUI Ad : Year , right .

oops!

Gummster's gotta go ! So to all at interest.co.nz , Wolly , Kunst , muzza , Sore-loser , steven , PDK , Elly , Chris_J , Andrew-in-Funland , Christov , St. Nick .. ............. To all the wise and wonderful , all the funny crew who write here ........... oh yeah , and to you too , Rob-of-the-North ............ Happy New Year ! Rock on , 2011 .

GBH is orf for a walk up the hill to Para-On , to a friend's manok ( chicken farm ) . Lechon manok and Tanduay Rum to see in the new year .  Yes ! ........... And meebee some karyoake and San Miguel pale pilsen later on .

May you all be so blessed . Pip pip !

Cheers Gummy.

It's still 2010 where I am.

Happy New Year to all

Bernard

Hope Bernard you are going to slip into a certain interesting conferences over there in Vegas in Jan..will be real interesting and make a nice change from the high living...even if just for a few hours :-)

Ha. My wife has the work conference. I'm babysitting. Plenty of good, clean fun to be had without spending money. Apparently lots of great fountains and man-made scenery.

Enjoying our trip there in an RV via the coast from LA to San Francisco, across to Lake Tahoe and down through Death Valley to Vegas.

Just visited Hearst Castle. Back in the last gilded age of the 1920s he sure spent a lot of money hauling a lot of cheap art back from a bombed out Europe.

The gap between the rich and the poor is so wide here, and getting wider.

Bernard

Paul Krugman getting a well deserved boot up the bum.... http://www.marketoracle.co.uk/Article25326.html

Here's a brief warning:

 

"THE Reserve Bank's November rate hike sparked a national fall in house prices with further declines likely over the year ahead.
Prices had been flat for the five months since the previous rate hike in May but slipped 0.2 per cent in November.

Although some regions are performing better than others, house prices have now fallen in all state capitals since May with property markets showing signs of weakening further.

New lending figures released by the central bank yesterday show that growth in home lending to owner-occupiers has fallen to 7.3 per cent, its lowest level in the 20 years figures have been kept and little more than half the average growth of 13 per cent. The Rismark-RP Data house price index shows the market is weakest in Perth, where average prices have fallen by 4.9 per cent, or almost $25,000, since May."

 

 http://www.theaustralian.com.au/news/nation/house-prices-tipped-to-slip/story-e6frg6nf-1225979670600

It will be amazing if there isn't any correction in Australia, as while NZ prices settled and eased in past 3 years,they have continued to go up and up in Australia. We are now probably  better positioned here in NZ due to the correction since 2007

A late holiday brief aimed at socialist marxists who always emerge from beneath their rocks to claim public ownership of resources after private exploration has proved the ore body or whatever.

This is a lesson for them. Exploration costs are high and losses can be huge. They never put up the money but always demand a share of the bounty when anything is found. Right Jewleya?

 http://www.theage.com.au/business/shares-plunge-as-advents-20m-gas-hunt-runs-dry-20110104-19f21.html

Remember this on radionz.....back in late oct.

Why has there been NO public comment about this?

Who suggested this bright idea?

Is there any evidence to support the claim?

Is there a better way to use the 200 million?

What happens when they are finished, and another mag7 hits right underneath said safe land?

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The Government is to build what it describes as a massive dam around Christchurch suburbs affected by a major earthquake.

The underground wall structure will encircle eight areas damaged as a result of the 7.1 magnitude quake that hit Canterbury on 4 September.

The Government says the strengthened terrain will minimise the impact of large quakes on suburbs which have been affected by liquefaction.

The structure will be built underground on vacant public land that borders rivers and other waterways. It would be built from concrete or wooden columns that would be driven into the ground.

Earthquake Recovery Minister Gerry Brownlee says the plan could cost up to $200 million and would be paid for by the Government.

The plan requires approval from three local councils to proceed.

The Earthquake Commission hopes the remedial can start early next year. Chief executive Ian Simpson says the dams would generally be about 10 metres wide and ideally on public land.

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