Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that milk powder prices rose 7.2% in last night's fortnightly auction to their highest levels since July 2008.
Prices of food and oil are surging internationally as governments and buyers in developing countries scramble to cope with demand for food amid fears about inflation, partly driven by central banks such as the US Federal Reserve that are trying to print money to restart their economies.
See more details here in globalDairyTrade's results.
Fonterra's auction platform has now sold NZ$4.5 billion worth of milk powder in 37 auctions since it started in July 2008, our records show.
Partly in response to the rise in the value of Fonterra's exports, the New Zealand dollar rose over 78 USc.
Appetites for risk globally also firmed after stronger than expected manufacturing figures in the United States overnight. See more here from Reuters.
The Dow rose more than 1% to over 12,000. See more here at Bloomberg.
Long term US Treasury bond yields rose slightly, increasing the spread between 2 year and 30 year bond yields to a record high of 4.03%. See more here at Bloomberg.
This measures the so-called 'steepness' of the yield curve and suggests investor are more worried about inflation in the longer term.
Meanwhile, more than one million Egyptians took to the streets overnight to demand the removal or resignation of President Hosni Mubarak. Some reports said he was on the verge of leaving. Also, in Jordan the Prime Minister resigned as people power revolts spread across parts of the Middle East.
In Australia, the price of copper hit a record high as the Queensland mining industry braced for Category 5 Cyclone Yasi, which has been compared in strength to Hurricane Katrina. See more here at The Australian.
Back in New Zealand, finance company NZF Group has told holders of NZ$20 million worth of capital notes maturing on March 15 that they will force a debt for equity swap rather than repay the notes in cash. Here are the details in NZF Group's announcement to the NZX .
8 Comments
Excellent news for dairy farmers with increased prices.
Let's hope they start to open their wallets and spend some in local community.
Mike, the banks control the cheque books of many farmers. Even if you are cash positve and have a good surplus, they will control your spending if your debt to equity ratio doesn't meet their new rules. They never worried about debt to equity before, but now it is a big thing.
The many who do have the cash will spend some but most are still wary that prices can fall just as quickly as they go up. Mind you, if they do start spending they will run the risk of the being slammed as 'wealthy farmers'. So we are damned if we do, and damned if we don't. Ah, well, some things never change,. ;-)
There must be some farmers who aren't up to their eyeballs in debt.
I've never had a problem with wealthy farmers spending so long as I can clip the ticket along the way.
Anyway - some interesting comments/ links about China’s upcoming economic power and strategic development:
http://labvirus.wordpress.com/2011/01/24/wake-up-sheeple-china-is-not-our-friend-by-a-longshot/
"..... trying to print money ......"
I think Bernanke has run out of ink!
Inflation on the way...hate to be a serf to a bank in this market....must be about now the RE mob will come out with some crap about it being a great time to buy property....
Has Egypt disappeared ? For the last 48 hours that was all we got , fecking Egypt splattered all over every news outlet , continuously ..... And those extrapolations that it's problems would spread through-out the region , oil would hit $US 200 / barrel .... And the global financial recovery would screech to a grinding halt
.....And today , nada ! Not a word . The cyclone near Queensland is the only story to tell . Geez Bernard , you in the media are fickle coves !
Egypt , my Egypt ...... Wherefore art thou , on Wednesday morning ?
Maybe people don’t want to know, because we will hear and are confronted about the development and it’s dangers path too much in the future. This is another conflict/ endurance test with major implication for the world economy - or even worse.
"But many more objected to the cost of $338 or more to pass all three stages and accused politicians and officials of revenue-gathering." herald
No surely not...a govt that abused the red tape game is that manner would deserve to be biffed out...oh wait...we did that....hey how come National are carrying on the rort..the thieving..?
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