Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news of New Zealand's biggest natural disaster.
Yesterday's 6.3 magnitude earthquake in Christchurch has devastated the city and killed dozens. Many more are trapped and fighting for their lives.
The scale of the disaster is many, many times larger than the September 4 earthquake that struck Christchurch.
The focus now is on rescue and recovery of the living. See more detail here.
NZHerald reported that the government will consider imposing a national state of emergency at a cabinet meeting at 9.30 am this morning. Prime Minister John Key is due to speak at 11am.
However, financial markets have reacted and some are beginning to consider the economic impact of the earthquake. It is far too early for any sort of accurate assessment, but it will obviously be many, many times larger than the NZ$7 billion estimated for the September 4 quake.
The New Zealand dollar fell under 75 USc this morning and wholesale interest rates fell between 5 and 20 basis points as financial markets priced in the prospect of no rate hike for the rest of 2011.
Some are even considering the possibility the Reserve Bank of New Zealand may make an emergency cut in the Official Cash Rate.
BNZ's economists have moved their forecast for the next OCR hike out to January, while ASB has changed its forecast to December.
5 Comments
Dow drops more than 200 points as oil prices surge
Not good.
No doubt some stupid bank economist will come up with the GDP mantra. A useless indicator like all the others.
This quake will be hard one for NZ as a whole to bounce back from.
No doubt the elite money printing brigade will be rubbing there hands together + interest!
Liquefaction and lack of money are real problems. Rebuilding the City Centre and business complexes may not even happening. Hopefully parks, especially to remember the tragedy and to bring Christchurch back to a garden - "The Gardencity". New Zealand – like to rest of the world is changing fast.
Here information about liquefaction:
http://www.scoop.co.nz/stories/SC1009/S00007/christchurch-liquefaction-…
The 45 Herald pics tell a story of dangerous brick and stone facades falling out...of some modern high rises with poor internal wall bracing...and then there are the undamaged high rises that are now leaning due to the ground turning to mud.
The new Chch CBD will be of low level buildings able to cope with unstable ground. Much of the taller stuff will have to come down. All of the brick and stone facades are set to go. A good deal more steel and foundation work will be needed in every rebuild....
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