Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that oil prices fell sharply again overnight to under US$99/bbl after US oil inventories were higher than expected and fears emerged globally about slower economic growth and oil demand.
See more about the inventory spike and oil's fall here at Bloomberg.
Oil also fell in opposition to a stronger US dollar, as it often does. The US dollar was stronger against the Euro because concerns about the Greek debt crisis and a possible contagion through Europe's financial system are still bubbling away. See more here about the euro's fall at Bloomberg.
China's inflation figures out yesterday were stronger than expected, again lifting expectations authorities there will have to slow the economy down. See more here about Chinese inflation via Bloomberg.
The Bank of England also commented overnight that inflation was likely to hit 5% and that it would have to increase interest rates later this year, even though growth remains sluggish because of dramatic budget cuts. Three of the 9 policy making members voted to increase interest rates this week. See more here about the Bank of England's comments at BBC.
A surprise increase in Polish interest rates overnight also focused attention on the risks of inflation and slowing economic growth.
The Dow fell more than 1% in line with the oil price. See more here at Bloomberg.
The New Zealand dollar, which often tends to follow moves up and down in tandem with commodity prices and US stocks, fell below 79 USc. See more here about currencies from BNZ's Mike Jones and Kymberly Martin.
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5 Comments
Gosh it's awful isn't it...fancy the poodle media letting on about rapidly rising inflation....and pointing the finger at stupid reserve bank policies...what do they expect...rational decision making and no bailouts...dear oh dear what is the world coming to when a govt and its toadies in a reserve bank can't carry on misleading the stupid masses.
That reminds me...what reason did Bollard give for making credit cheaper and what did he say would cause him to reverse his policy!!!!
You know I had to laugh in a gobsmacked way when Jenny McManus said on Business News this morning............................
"Why would a Government want to own a T.V. Station".....your a bright lady Jenny but that's a doozie........duh hello....hello.
By the way Bernard.....is that Nadine Chalmers-Ross ...Kaaaaaaaaaaute or what...huh come on big guy you can tell us......we'll keep it on the downlow.
sales of readymix concrete in the March quarter 2011 were at their lowest level since the March quarter in 2002
http://www.interest.co.nz/charts/commodities/readymix-concrete
Auckland grew a bit, but it was really tough in the South Island. Wellington was similar to last year.
Mind-blowing lunch-time reading from Matt Taibbi:
http://www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511?page=6
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