Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that Grant Thornton has released the 6th statutory managers report for Hubbard Management Funds.
The report shows a shortfall of NZ$31 million for investors and that Alan Hubbard had borrowed money against assets in the funds, effectively pawning assets that did not belong to him. The report shows investors will now not be repaid until next year, rather than this year.
The Timaru Herald reports, however, that the statutory managers' report for Aorangi Securities shows Hubbard has pledged NZ$60 million of his pesonal assets to ensure investors do not lose money. It is not clear what the assets are or how liquid they are. The official report from Grant Thornton was leaked to the newspaper by supporters of Hubbard.
Meanwhile, Opec members have called for an urgent meeting to consider increasing oil production to offset losses from Libya, where civil war has broken out. See more here at CNN.
The Dow rose more than 1%. See more here at Bloomberg.
However, the euro fell as concerns grow that the sovereign debt rise there is about to blow up again. See more here at Bloomberg.
The New Zealand dollar was solid just under 74 USc in early trade.
No chart with that title exists.
37 Comments
Time to head off to a place that's cheaper, then. "Gold Coast property faces 7-year glut...2,000 apartments worth around $2 billion were up for sale, with few buyers meaning just 300 apartments were selling on average each year." There's always an alternative for a renter! Landlords...are stuck with what they have....
(NB: It was forcast the due to the floods, Queensland would have a 'property shortage'; a bit like the one that's forcast here as a result of the earthquake?)
OK, goodbye then
I'm off in November. But it looks like quite a few will be going before me :). "Stats NZ says 4,875 NZ citizens left permanently to live in Australia in Jan (157 a day...)" That's 62 houses worth, each day....
Have as look at who those immigrant are, on the flip side of the equation?! Students comprise a significant number of them; yet I also accept that their number is dropping as well. Hang on! That's even less net incomings.... looks even worse for landlords...
The way Auckland rents and property prices are holding, it would appear that not many Aucklanders are leaving :-)
Oh noes Dukey, we're quaking in our boots haha
Stop Press Stop Press - Extra Extra Read All About It!
Tenants income stream evaporates.
The Duke
A gentle nudge in your direction to avoid excessive use of capitals and exclamation marks. Lowers the tone dear boy.
Sore Loser pushes the limit on capital letters. Yours was a tad over the limit.
toodle pip
Bernard
Lowers the tone? Lowers the TONE?
Well, how about the use of "Toodle pip"? Hardly the language of a professional young economist! Pull your socks up, lad! I think some of us others set a better example!
Tinkerty tonk
Exclamation market, Bernard? Any examples? RE perhaps?
Hmm, Opec doesn't really have the capacity to spare Saudi Arabia, Which Allegedly Hiked Output, Just Raised Crude Export Prices To Asia And Europe
too true.
here's the excerpt:
Industry officials said the production increase, expected by early April, would -- together with an earlier rise by Saudi Arabia -- almost make up the shortfall in supply from falling Libyan crude exports.
Key word? Almost.
You can force production for a while, but you have to back off, or you lose resource. They'll be sweating about the timing....
Im getting the distinct impression that you dont believe the lying sods over in Saudi......
haha niether do I.
One day they announce an output rise from x to y...some months later they announce an output rise except it never seems to be the expected y to z... its always x +/- some number........it looks like they are treading water (haha...oops, water injection anyone?)....I really wonder if they can ever get to 9 again and keep it there let alone 12......
Oh and Iraq, the supposedly second Saudi Arabia, I think they were expected to get to 8 or 12 miilions, fat chance it seems......they seem to be static at or about 2.5million per day, which seems pretty good going since they managed to break 2million per day a while back.....so 3mbpd+ at year end maybe more like 2.8.....
regards
pdk
I reckon the rebel should blow-up as much oil producing infra-structure they can as soon as possible, That will get them a response/assistance from NATO/EU/US, Bugger a No-Fly zone, they'd be british Tanks rolling into Tripoli to stop this nonsense
Neven
Shortage might get a bit more acute because of politics as much a physical supply.
The instability in the Persian Gulf allows the Iranians a low-risk, high-reward parallel strategy that, if it works, could unhinge the balance of power in the entire region
Read more: Bahrain and the Battle Between Iran and Saudi Arabia | STRATFOR
What is it going to cost to fill your tank by the end of the year?
Depends on the outcome, if as July 2008 $147USD well we could see anything up to $5 a litre, past $3 seems easy, but then we for the end of 2008 had a global economic collapse and oil went down to $35USD a barrel....so it could be <$1.50 a litre.....we might have 10%+ un-employment to go with it mind....and in the US 15%+ or a real unemployment matching the GDepression.
Neither looks very nice....
Oh and the biggest issue is no so much the price but if we can get petrol, ie rationing for one....so full tank? maybe not.....
regards
Yes I agree that rationing is likely to be the major problem rather than the price.
I might have to bring forward plans for a woodgas powered car.
America eased up on the gas prices during the last depression so at least people could still be mobile. Wonder what they will do this time.
Last time it got above $2 I noticed 2 things,
a) the trains seemed to fill, this time it doesnt seem so bad, still 220 users v the 260+ I recall...so it doesnt seem to have happened yet...
b) More scooters about....Im seriously thinking about a 125cc scooter or more likely hang in there for a 3kw electric one...if a) gets so bad I cant get on I may have no choice.
regards
Time for everyone to start cycling...
I find it cheaper, faster and healthier than driving in Auckland.
cheers
Bernard
not more dangerous though?
and breathing in all those fumes Bernard!
Each to their own
I do the bus - that has its benefits - cheaper, generally more relaxing (save for sometimes dodgy driving and annoying passengers especially those dudes who talk out loud on their mobiles) and its costs
MattinAuck: "breathing in all those fumes"
I read an article (I think in New Scientist) a year or two ago. They had found that cyclists actually take in less pollution than motorists. eg when motorists are all creeping along in the queue or at the lights, sucking in all the fumes from the diesel SUV in front, the cyclist has zipped along to the front of the line between the lanes. Bloody good!
So go Bernard!
Tinkerty tonk (again)
I think part of that is having their nose higher in the air as well.
I have also read statistics(don't ask me where) that shows living in a city will cut 10 years off your life expectancy. So lucky I don't:)
Oh and Matt, if enough cars disapper off the roads then bicycles will be plenty safe.
I have to agree with the comments regarding public transport uptake in the last spike in prices as the motorway freed up considerably. I don't have the choice of public transport unless I want to car/bus/bus again and take 3 hours:(
Scarfie: Sure, you're right about the noses higher up. I was just a bit suss about that bit, so didn't mention it!
This country needs more cyclists, we have got this crazy anti-cycling car-luvvin' culture that is incredibly counterproductive in all sorts of ways.
Cheers
Sovereign Homes in voluntary liquidation -http://www.stuff.co.nz/business/industries/4747278/Sovereign-Homes-coll…
I don't watch much TV, but I am sure they have been advertising hard out.
Seems to be typical of human behaviour, ignore all the warning signs and carry on till things collapse.
Bernard. Do you reckon this is true, about the SCF $80m? " ( from a discussion about Chum's Beach purchase)
"The $20 million 'valuation' is the value that the developer has put on the farm with subdivision consents in place - however, the consents do not exist yet. They will face a big battle to get consents with 1,000 people opposing a subdivision happening on that land. Maybe they could gift the land given that they received $80 million in government payouts from their South Canterbury Finance investment."
http://nz.news.yahoo.com/a/-/top-stories/8976431/quake-stops-sale-of-coromandel-beach/
Hmmm. I don't know the details behind the ownership of New Chums Beach.
More digging required.
cheers
Bernard
Didn't they say on TV, it was 'parties associated with Queenstown developer, John Darby"?
Well in the spirit of collaborative citizen journalism, I just recieved a release from Rodney Hide with a link to Cabinet documents on Auckland's spatial plan.
One is entitled 'Housing affordability in Auckland'
I'm going to have a read through, and welcome any readers' comments etc.
Cheers
Alex
Here is the release:
Minister of Local Government and Chair of the Cabinet Committee for Implementation of Auckland Governance Reforms Rodney Hide today released papers setting out the Government’s aspirations for Auckland, in support of the Auckland Council’s public consultation phase for the development of its first spatial plan.
The papers have been developed in collaboration with various departments and outline the Government’s views on key policy issues such as housing, urban development, transport, business and economic growth and social development. These are available on the Department of Internal Affairs’ website: http://www.dia.govt.nz/diawebsite.nsf/wpg_URL/Legislative-Reviews-Royal-Commission-on-Auckland-Governance-Index?OpenDocument
Ministers met with Auckland Mayor Len Brown, Auckland Council Chief Executive Doug McKay and Chief Planning Officer Roger Blakeley early in March to discuss how the Government and the Auckland Council could work together to ensure the spatial plan supports central and local government’s efforts to transform Auckland.
The papers were used at that meeting to clarify the Government’s position in a number of key areas.
“We wanted to be very clear about our broader goals for Auckland, and about the importance this Government places on engaging with the Auckland Council and with Aucklanders as they develop their spatial plan,” Minister Hide said.
“We regard the plan as a very important document that provides a basis for developing Auckland into a truly vital and vibrant city, capable of making a significant contribution to the long-term growth of the whole country," Minister Hide said.
Does anyone else find this slightly frightening?
http://www.stuff.co.nz/national/christchurch-earthquake/4748736/Mark-We…
M7.2 earthquake has hit northern Japan. Tsunami alert issued in Japan
160km off the coast of Japan - a 50cm Tsunami warning. No reports of damage.
Mark Weldon to lead the government's earthquake fundraising efforts - http://www.stuff.co.nz/national/christchurch-earthquake/4748736/Mark-We…
I find this frightening. But then I guess we all know what floats.
Any Psychiatrists/Psychologists on here?
I am sure they would find plenty with Weldon to keep them busy.
Just got this by email from a friend in Tokyo:
"It was a decent shake, I was in a meeting and the blinds were moving, we are on the 25th floor and the building swayed for a good 2 mintues, 7.1 193 km's of the coast of Japan, up north, tsunami warning be given out so a decent jolt."
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