Bernard Hickey details the key news in 90 seconds at 9 am in association with Bank of New Zealand, including news expected on Thursday to show New Zealand's Gross Domestic Product rose around 0.2% in the March quarter after a 0.2% rise in the December quarter.
In Australia the Reserve Bank of Australia is widely expected to hold its official cash rate at 4.75% on Tuesday, but may indicate an increase next month as it battles to control inflation from its biggest mining boom in more than a century.
See more here at The Australian.
Elsewhere the European Central Bank is expected to hike its official rate from 1.25% as inflation continues to rise above its target zone. Also, as expected, European officials approved the payment of 12 billion euros to Greece and indicated it would approve a new bailout package. See more here at BBC.
Meanwhile, the Bank of Moscow had to be bailed out over the weekend with a US$14 billion rescue.
The biggest bank rescue in Russian rescue followed the discovery that a third of its loans were bad. See more here at BBC.
In America legislators have chosen to work through the July 4 Independence Day holiday to try to solve the debt ceiling impasse that threatens to cause America to default on its government debt from August 2.
See more here at The Guardian.
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16 Comments
Here in NZ:
http://www.stuff.co.nz/business/5224504/Mystery-spike-in-mortgagee-sales
I recall some interesting comments on the low levels of mortagee sales last year. Perhaphs the banks are now making their move...
The place we rent is up for mortgagee sale. The lender is Sovereign which probably doesn't have the backing of a large bank. It would be interesting to see which lenders are calling in their loans. My theory is that the big banks aren't calling theirs in yet as mark-to-market will severely dent their loan book. Things could get a lot worse if interest rates go higher.
A mortgage broker came knocking at my door thinking I was the owner and was offering a "second tier" loan. I should have asked him what interest rate he was offering.
I got a real surprise yesterday driving down Pukehina Beach where speculation pushed some quite average baches up to the million dollar mark. Well over a third of the properties now have For Sale signs.
FYI Marc Ellis and co have sold Charlies to Asahi (Schweppes Australia ) for NZ$129 mln
How are we supposed to build up New Zealand owned exporters generating income for New Zealanders if we keep selling them to foreigners at the first wave of a cheque book?
Details here
Can we quote you Bernard , that if Fairfax or some other plonkers with more money than brains were to offer you a King's ransom for interest.co.nz , that you would refuse to sell it to them ........ hmmmm ?
..... $ 25 million ..... no ?.. $ 64 million ..... $ 101 mill ....... what is the number , where you would take the munny and scarper !
Yes , and until 42-below got taken over , the company was making losses , and the shareholders were losing value .......
.... now the 42-below team have the munny to do something far more useful than designer vodka ....... Ecoya , scented candles ! ......
Just think , Gareth , with the $ ga-zillions that Fairfax biff at you , you can do the same , follow your dream , and open a salon for wayward penguins ,...... " Happy Feet Penguin Pedicures " .......
How fast did we grow in the first quarter?
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=107…
Bernard , you are spot on the money . The problem is that there are weak and illiquid capital markets in NZ . And we are to blame .
We simply dont have the level of capital of the Australians . Their effective tax rates are lower , their currency is stronger, they are more agressive and optimistic in business .
We have a pathetic savings level when compared with our Ozzy cousins with their compulsory superannuation savings.
Kiwi's dont want complusory superannuations , we dont want to effectively exploit our natrual resources .
We are happy to be poor and let everyone outside buy our companies, our banks , our telecoms and our farms tell us what to do as piss-poorly paid employees.
As long as we sit like Moa's with heads buried in the mud we will continue to have this problem
National announce spending plans
http://www.stuff.co.nz/national/politics/5226270/Nats-to-spell-out-thei…
And C H-smith comes up with The 4th of July is a fitting day to ponder the reality that we are at Peak Government, and the Savior State is unsustainable. This is a matter of accounting: no nation can spend more than it generates in surplus real output forever. What goes unremarked is the intrinsically destructive nature of our rising dependence on a Savior State. http://www.oftwominds.com/blog.html"Freedom campers have hit back at government attempts to crack down on where and when they can stay.
New legislation, currently before select committee, would allow councils to designate camping areas, prohibited places and sites where camping will be restricted to self-contained motorhomes.
Automatic fines of $200 will be given to people camping illegally and court-imposed fines of up to $10,000 will punish those caught dumping sewage" stuff.co
The question then is whether this 'select committee' will have the grey matter to see the difference between people behaving in a filthy manner and those who are just stopping for the night and leaving nothing but tire tracks behind them....once councils appoint 'camp coppers', they will have to 'catch' so many a day to make it pay....
The danger is that councils will see this as a "money money money" game.
"Christchurch City councillor Tim Carter wants the full list of contracts awarded to staff-appointed consultants put under the microscope.
City council staff have, off their own bat, given consultants 14 contracts worth $2,826,598 to support the development of the central city plan.
Five councillors – Carter, Jimmy Chen, Jamie Gough, Yani Johanson and Glenn Livingstone – were outraged at last Thursday's meeting that Impact Project Management had been delivered a 10-month, $878,936 contract for project management without council scrutiny." stuff.co
Sniff...sniff...what's that pong?
Top marks for Carter,Chen,Gough,Johanson and Livingstone.
But I suspect they will discover the truth has been swept under the rubble.
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