Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that Cyclone Yasi hit the North Queensland coast earlier this morning, causing massive damage to the towns of Tully, Innisfail and Mission Beach.
However, the storm was downgraded to a Category 3 around 5 am from a Category 4 storm. It was downgraded last night from category 5 last night, having initially raised fears it would be the worst storm to hit New Zealand's largest trading partner in more than a century. See more detail and breaking news here at SMH.com.
Meanwhile, the Egyptian crisis took an ugly turn overnight as President Hosni Mubarak dug in to fight it out and turned loose a mob of his own supporters on the anti-government protestors. Violent clashes ensued with hundreds injured.
Opposition leader Mohamed El Baradei said he feared the confrontation could escalate into a 'bloodbath'. See more here at the LA Times. Also, Yemen's President pledged to resign overnight.
Meanwhile, global financial markets were calmer overnight despite the fresh Egyptian turmoil.
US private sector payrolls measured by payrolls firm ADP increased by 187,00 in January, which was slightly more than expected. See more here from Bloomberg.
Official non-farm payrolls figures will come out on Friday night and will give a clearer indication of activity in the world's biggest economy.
Meanwhile in Europe, Standard and Poor's downgraded Ireland's credit rating to A minus on concerns about bank debt and the Irish government's ability to refinance the debt. See more here at Bloomberg.
Back in New Zealand, financial markets await New Zealand's Household Labour Force Survey due at 10.45am. Economists are picking the jobless rate will be unchanged at 6.4%, but are concerned of a softer job market, given early indications that hours worked and numbers employed might have fallen.
The New Zealand dollar was solid overnight around 78 USc. See more here from BNZ's Mike Jones.
18 Comments
Ireland is in over its head
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/829941…
And the weather seems to be giving the Aussies with jitters.
"NEW mortgage growth in January was the slowest for seven years, with homebuyers frightened by higher interest rates and the economic uncertainty caused by the southeast Queensland flood crisis". And all this before Yasi!
And, nice to see you quoted in dispatches, Bernard!
"NZ Deleverages: Taste of Things to Come"Considering the worldwide troubles on many fronts with possible severe consequences - I think the time of playing political Kindergarten is over. It is time for our politicians and policymakers for a "Contingency Plan" for the country.
"Gerry Adams tells the IMF to go home,and take their money with them"And you know what?He'll get in in the coming elections..The IMF..will suspend all loan repayments till the economy grows or dosn't.Because if they dont they will see the Pigs do the same.
GA is a loon....but he maybe right....socialising the losses is getting to crazy proportions...
Sure the IMF could suspend payments, the Irish Govn then has to stop paying the interest...
regards
Great stuff about the consequences of an out-of-control Fed here:
http://www.chrismartenson.com/blog/how-long-can-party-in-stocks-last/52040
Did anyone access his report "How this will all end"?
Neco, its not really the Fed, its the US Govn's fault, teh Fed is trying to hold it together (IMHO).
regards
That's droll, next you'll be saying the Fed is accountable to the US government. Found this under comments from above link:
I just can no longer accept the idea that the Fed is unaware of the inflationary pressures they are creating. I know what they say publicly (the caviar on the chin moment), but they HAVE to be smarter than this. Somebody over there has to be watching everything that we are watching and letting the boss know.
THEREFORE, the Fed must be acting intentionally, and I do NOT want to hear from anyone about conspiracies. So why? I am guessing it has something to do with the following:
1. They actually understand the fiscal debt trap, know the government can't change its ways, and are trying to eliminate the debt through inflation.
2. They are trying to screw China over to fix the trade imbalance.
3. They are purposely (and criminally) favoring the well-being of banks over the national good.
I need to think they are doing this on purpose because the idea that they are unaware is far more disturbing. Does anyone know why they are destroying our currency?
Rector
Neco, the Chris Martenson information and analysis is always worthwhile reading and very intelligent and informative. Apart from the "Crash Course", which is really helpful and food for thought, I check his "Daily Digest" .... well - daily.
Hi Gertraud, would you know per chance his opinion on "How this will all end"?
Neco, no,sorry, I was an enrolled member for about a year, but have cancelled because I have to tighten my belt.
Schade!
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/82914…
"The surge in global food prices since the summer – since Ben Bernanke signalled a fresh dollar blitz, as it happens – is not the underlying cause of Arab revolt, any more than bad harvests in 1788 were the cause of the French Revolution.
Yet they are the trigger, and have set off a vicious circle. Vulnerable governments are scrambling to lock up world supplies of grain while they can. Algeria bought 800,000 tonnes of wheat last week, and Indonesia has ordered 800,000 tonnes of rice, both greatly exceeding their normal pace of purchases. Saudi Arabia, Libya, and Bangladesh, are trying to secure extra grain supplies.
The UN’s Food and Agriculture Organization (FAO) said its global food index has surpassed the all-time high of 2008, both in nominal and real terms. The cereals index has risen 39pc in the last year, the oil and fats index 55pc."
2008 was bad for un-rest due to food prices....so not only is the USA's printing exporting inflation (and I bet the likes of GS are buying futures in grain pushing up the price, to make even bigger profits) its also causing political unrest, which will feed back to oil shortages/price hikes in the US....which probably will make Mr B print more......a vicious spiral....
I'm beginning to think being in the mad house is safer, the real loonies are outisde in Govn...
NB...."The immediate cause of this food spike was the worst drought in Russia and the Black Sea region for 130 years, lasting long enough to damage winter planting as well as the summer harvest. Russia imposed an export ban on grains."....so lets blame AGW then....
"We are on a thinner margin of food security, as North Africa is discovering painfully, and China understands all too well. Perhaps it is a little too early to write off farm-rich Europe and America."
and NZ.....
regards
"The former real estate agent found guilty of a $13.5m mortgage scam has been sentenced to four and a half years in prison.
Raghu Aryasomayajula, 38, was sentenced at the Auckland District Court this morning. He was found guilty of two counts of obtaining by deception by Judge Roy Wade".herald
Harrrrrrrhahahaaaaaha.... and who did he work for?
"The price of a two-litre bottle of milk in Australia has been slashed to A$2 (NZ$2.58) just as Kiwi shoppers, who are paying up to $4.80, brace for another round of dairy price increases."stuff
Is it just the milk then?...oh no...council rates going up twice the official rate of inflation...and insurance premiums...school fees no doubt....petrol and diesel...wof and cof as well...bread for sure...butter too...not forgetting cheese and most fruit...oh and meat...all meat!.
No worries right Bolly...the RWC will save us all.
Im finding meat the same price, or cheaper.....and Wgtn is cheaper than Blenhiem thats for sure...
Insurance premiums, hardly any change...council rates, yes, 6+%...
regards
"milk in australia" - haha - Wolly you are sadly misinformed. The stuff you are talking about is not "milk". It is house brand "stuff" that is white, looks like milk, doesnt taste like milk, its called milk, its marketed as full-cream-milk. It's 30% "permeate". How much would you like. I'll give you as much as you can take.
The price of a two-litre bottle of milk in Australia has been slashed to A$2 (NZ$2.58) just as Kiwi shoppers, who are paying up to $4.80, brace for another round of dairy price increases
Coles and Woolies control a large part of petrol market and cheap milk will be paid for by not so generous discounts at bowser.
Masterton District Council facing huge rates increase.
http://www.times-age.co.nz/local/news/masterton-rates-bomb-lands/393851…
About 19% extra over 2 years.
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