Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news OPEC failed to agree on an oil output increase for the first time in 20 years, sending oil prices more than 2% higher overnight.
See more here from Bloomberg on OPEC's failure to agree on an output increase.
Nymex crude rose over US$100 a barrel as a new report from the US government said oil demand would increase by 1.7 million barrels a day this year to 88.43 million barrels per day. The oil demand forecast came as Japan increases its demand for oil to replace electricity production lost in the Fukushima meltdowns. See more here from Reuters on the oil demand forecast increase.
The Dow was marginally stronger in late trade as energy stocks rose with the oil price.
Meanwhile the US dollar also strengthened against many currencies as markets digested the implications of US Federal Reserve Chairman Ben Bernanke's apparent reluctance to carry out a third round of quantitative easing or money printing despite a weakening economy. However, the Yen rose as concerns about US growth and Europe's debt crisis saw some seek refuge in the world's third largest economy. See more here at Bloomberg.
German industrial output was surprisingly weak, adding more fear to the European debt crisis.
Gold also fell on talk that the Fed may not print again. See more here at Bloomberg.
Elsewhere, the Pound fell after a Moody's official warned Britain's Aaa credit rating may be downgraded. See more here at Bloomberg.
The New Zealand dollar was marginally weaker overnight ahead of the Reserve Bank's June quarter Monetary Policy Statement due at 9 am. The bank is expected to leave the OCR on hold at 2.5%.
No chart with that title exists.
15 Comments
I have to wonder whats going on here, Iran Im sure is flexing its muscles, its p*ssed Im sure, I dont understand why the rest are......and its almost like cutting your nose off to spite your face, at this level if the developed world collapses into another recession led by either the EU or the USA demand will collapse and they will be getting $35 again this year....and maybe $80 again in 2012.....it seems potty........unless they have decided the US exporting inflation is hurting them so bad its better to collpase / destroy the US's economy? seems an awfully big plan....
regards
Bernard - care to get your insurance correspondent to make a comment on this latest news out about AMI?
http://www.stuff.co.nz/business/money/5118833/Insurance-premiums-to-soar
''AM Best said the financial and issuer credit rating for AMI had now been given a stable outlook. The Christchurch company had prior to March 30 had a A+ (superior) rating.
The Government has agreed to back AMI with at least $500 million for five years after the Christchurch insurer sought that guarantee.''
I wasn't aware that the government had agreed to stand behind AMI for FIVE YEARS? Is this correct? If so it makes AMI possibly the safest insurance company (hence perhaps the turnabout from AM Best).
LOL OPEC.
Even more LOLs that the media repeat their musings verbatim and dont challenge them.
It hasn't occurred to these dolts that OPEC has NO spare capacity to bring on-line. After the Libyan crisis erupted the Saudi's talked large about making sure the market was 'well supplied'. Well go see how much extra they actually pumped........
The data is out there - one just has to look.
maybe OPEC is pumping flat out and Saudi Arabia included - they have no spare capacity ?
At current rates, the Saudi's won't be exporting anything by 2030:
Read and weep:
Saudi Arabia to build 16 nuclear reactors
two good items on Nine to Noon this morning.
One on oil exploration off our coast "as the world runs out of oil, it will........"
The other a report from the UK - prices for everything going up - including a Scottish energy (elec) Co putting up prices by 20%. Yep.
I wonder if KR puts (those) two and two together......... You don't need to make 5 - 3 would do it....
We're starting to see it in real time. Must go and finish off the glasshouse.
Resurgence of America’s debtor prisons
http://rt.com/usa/news/resurgence-america-debtor-prisons/
“In January, a judge sentenced a Kenney, Illinois, man to ‘indefinite incarceration’ until he came up with $300 towards a lumber yard debt.”
Bernard, apologies for a random comment off topic but I was thinking I'd like to see a piece on NZ property using technical analysis rather than the boring old fundamentals(LOL). I understand it may be difficult to compile the data like for like, but It would be intriguing to see what the charts say.
Keep up the good work : )
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