David Chaston details the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including news that the Japanese situation, especially the nuclear situation, is not getting better.
They have a new enormous problem, one they have asked for international assistance with.
Meanwhile, the Bank of Japan has added a quarter of a trillion US dollars into their markets to reassure them. Some say even that may not be enough.
However, assuming the nuclear issue is resolved, the quake is expected to only take of 0.6% from their economy. The yen was pretty stable overnight.
In Europe, the summit there was reportedly a rancorous affair, with the head of the ECB openly attacking the approach of the French and German governments – and loosing the argument.
The European bailout funds have been increased to three quarters of a trillion US dollars, and a new fund established of the same size which will buy bonds directly from governments. The ECB’s huge holdings of previous purchases may have no market now.
However, generally these moves were seen as positive, and the euro rose.
Gold moved back up to where it has been most of the month, oil popped back over $100 again, and the Dow fell slightly.
All these international changes are having a local impact. The latest petrol prices have pushed up to $2.14 per litre, almost as high as the record $2.17 we saw in July 2008.
Remember, this time however, there is much more local tax in the price than back then, with substantial increases in self-imposed excise taxes and GST since 2008.
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