Chris Weston on currencies, markets

Double Shot Interview: Chris Weston from IG Markets talks on the A$, NZ$, Euro, US$, Australian commodity stocks, Fed policy and the Japan effect

9th Apr 11, 8:35am by Bernard Hickey

Bernard Hickey talks to Chris Weston from IG Markets about the outlook for currencies and markets.

They discuss why the New Zealand and Australian dollars are strong, why the Euro has risen despite the European Sovereign Debt Crisis and what the US Federal Reserve might do as its programme of money printing comes to an end.

Weston also talks about the structural problems facing the Japanese economy and the strong demand from China's cashed up companies for Australian and other resources assets.

The Minmetals bid for Perth's Equinox Minerals could be the first of many, Weston says.

Merger and acquisition activity globally is set to take off as companies look to deploy hefty cash reserves and low interest rates push investors out into riskier assets for better returns.

Weston also discusses the impact of the Japanese earthquake on the global economy and markets.

Weston is speaking at 10 am on Saturday April 9 at The Langham Hotel in Auckland. He will talk about currencies and markets. See more here.

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12 Comments

by Kunst | 9th Apr 11, 9:21am 1302297660

Forget about currencies and other stuff – worthless anyway. One day in the near future one can buy original 6 months old Kiwis looking like Chinese made in China in NZwarehouses boys for $ 22.99 girls for $ 32.99 incl. a bram made in China and 100g Fonterra baby milk powder made in who knows - 18% GST incl.

2 days before election on special - 10% discount.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=107…

Guess - who is the head of the nation in 2052 - one from the warehouse shelves.

Signed Tin-dull (Africa)

Note: Girls with blue eyes and ten toes not on stock right now. Boy bullies sold out.

by Andy Rodgers | 9th Apr 11, 9:35am 1302298543

Kunst - I find that NZ Herald article very worrying. Where is NZ going? It has become just a big warehouse for foreign imported goods. It is not rocket science to understand what happens to a country once it stops manufacturing its own goods for sale. That's the reason why Germany has such a strong economy.

by Kunst | 9th Apr 11, 11:33am 1302305607

Andy - I have written books why to increase NZmanufacturing here – responses ? – hardly any. Property and other useless stuff make 100’s of entries. We are just going around a circle – helplessly trying to hold on our living standards – but without increase of decent job opportunities and as a consequence better wages of the general public, so imported stuff is getting too expensive to buy. The government should allocate orders to NZcompanies the NZworkforce, especially in Transport, Telecommunication and Energy. There are plenty of opportunities – especially in sustainable and green industries.

http://www.euractiv.com/en/enterprise-jobs/wwf-report-green-industries-…

by Andy Rodgers | 9th Apr 11, 1:14pm 1302311684

I would have thought that the $1 billion that has gone to SCF and the similar amount to to AMI would have created huge opportunities in the industries that you mention. Manufacturing seems to be totally forgotten by NZ. Even the best NZ manufacturers e.g. F&P are now effectively owned by the Chinese. It's like watching a train wreck in slow motion.

by Andrewj | 9th Apr 11, 1:30pm 1302312600

Denninger on Taxation

http://market-ticker.org/

We cannot generate a nation of people who vote for a living. That is, if you receive benefits from the government and have income you must in some form pay for that government. You don't necessarily have to pay a lot, but you do have to pay. Everyone needs "skin in the game" so that their voting and political involvement, to whatever degree they are involved, reflects in some form and fashion of self-interest. Altruism is a great idea but never works in the real world.

by the_dc | 9th Apr 11, 3:21pm 1302319260

The interviewee says ... "I don't really follow the New Zealand market" ... who does anymore?

A couple of good interviews here (via Zerohedge):

George Soros:

http://www.youtube.com/watch?v=kS27TUyVUYU&feature=player_embedded

Marc Faber:

http://video.cnbc.com/gallery/?video=3000015563

by neco | 9th Apr 11, 3:40pm 1302320402

Caught that Faber interview too. Funny how those 2 squawkers or what ever they call themselves just don't get what he's on about.

by Kunst | 9th Apr 11, 4:34pm 1302323653

Faber sounds crazy, but he's right - the world is crazy.

To Chris Weston - the situation in the world will change fast like never experienced before in human history - experts and their arguments within one minute - have no value

by neco | 9th Apr 11, 3:33pm 1302319994

Funny how he doesn't seem to think that being back in recession, rising unemployment and a massive fiscal deficit might have any effect on the NZD.

It's all about what the speculators think, isn't it.

by Ant Manelope | 10th Apr 11, 11:37am 1302392264

Yes. The value of a currency does not equal the value of the country that issues it.

Currency markets are about 90% speculative trades and only about 10% business related ones. The "trend-is-your-friend" crowd and carry-trade investors certainly are the dominant forces.

He is right: currency traders don't care about sovereign debt crises. Recession, unemployment, defecits -- these don't matter unless they affect interest rates. Only when there is a real looming risk of imminent default does it make any difference.

by FYI | 10th Apr 11, 10:39pm 1302431960

Gold is the only real money. Paper ain't.

by Christov | 11th Apr 11, 9:43am 1302471836

Good value interview there Bernard.....enjoyed it.!!

If there is one common catalyst for the perversion of economies it would have to be at the extreme ends of speculative markets. Currency speculation as in the carry trade etc is pretty much on a par with when the cattle herders would ride into town ,shoot up the sherrif ,rape the women folk, have the mayor pardon the whole drunken splurge on the basis the blacksmith ,bar owners,canteens, and whorehouses (who incidentally made up the council)all benifited econonomically.

Untill we see some meaningful intervention in the area of currency trading.....the craziness out there in the market will continue......the real positions of economies will be blurred by false or at least fleeting data....

There is or appears to be no political will or consensus to address an industry that can be so destructive ,even if accidentally, to an economy at any given moment.......

In terms of the industries monetary worth, It really is mountainous.....in terms of any productive value to the global economies .........it really is worthless.

That said I guess the crazy bas%$ds are the only thing between us and carless days at the moment..so that's a usefull accident.!

While John Boy remains at the helm it would do well for all to remember...He endorses this industry and the use of it by large Corporations,perhaps Govt's as bonafide and somehow almost honorable.