Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, includings that hopes for a solution to the US debt ceiling crisis have emerged, boosting global markets and the New Zealand dollar.
The Kiwi dollar rose to a fresh record high of 85.7 USc around 2am this morning and is was around 85.5 USc in early trade as more relaxed global investors looked for riskier trades such as the commodity-linked currencies such as the New Zealand dollar.
Our currency also rose to a post-float record high of 53p and 60.5 euro cents.
The Trade Weighted Index rose to a three year high of 73.9 and has now risen 17% since mid-March.
The Reserve Bank last intervened to push the currency down in 2007 when the TWI rose over 76.
Meanwhile, US stocks rose 1.6% on the hopes for a US budget deal. Barack Obama endorsed a US$3.7 trillion deficit reduction plan from a 'gang of six' senators overnight that would cut spending immediately by US$500 billion and increase taxes by US$1 trillion. See more on the rise in stocks here at Bloomberg.
Any plan has to be approved by both houses, including Tea Party Republicans who are vehemently opposed to any tax increases. See more here on the 'Gang of Six''s plan at Reuters.
Oil prices rose 1.7% and the gold price fell back below US$1,600/oz on more relaxed views on global markets. European markets were in a holding pattern ahead of a crisis meeting on Thursday.
Also, Rupert Murdoch testified in front of a British parliamentary committee and was slapped in the face by a cream pie wielding protestor who called him a "naughty billionaire".
His wife Wendi Deng slapped the protestor back. See more at BBC.
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34 Comments
Clearly there is a serious need for a full Parliamentary enquiry into this matter...socialists carrying cream pies into Parliamentary Committee enquiries...tisk tisk...who knew about this...who can be trusted among all the MPs to sit on a Committee to find the truth about the cream pie?
What a farce.
There's a good picture of it here - http://yfrog.com/z/kihb41j - about the size of a plate. What great entertainment.
2000 pound per day for that committe job definitly.
That keeps pace with Jenny Shipleys $1000.00 a day on a committe to oversee a committe about earth quakes so 2000.00 pound should be about right + perks for the cream pie incident and some kind of million dollar package with a future job at the IMF and a taxi chit!
Farce? Na thats how the game works but hey quick if you vote in the other side things will change.....???
Yea right!
Today - best time to buy gold !
http://en.wikipedia.org/wiki/Gold_reserve
Have a look New Zealand Number 19 - not bad - GREAT !
Ambrose on the EU v rating agencies. The politicos seem determined to beat the rating agencies into submission, AAAAAA ratinsg all round seem the plan...if the EU lasts that long that is....
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100010742/e…
You Want to Fix the U.S. Economy? Here's a Start
"Europe is starting to unravel. This is going to be much worse than 2008, at least as far as Europe is concerned, and odds are high that it will be very bad for the US. And the markets are still acting as if the problems in Europe can be resolved. The recent bank stress tests were a joke, as they assumed no Greek or Irish defaults. This simply can't be. There is a banking crisis of massive proportions in our future"
http://www.marketoracle.co.uk/Article29354.html
that not enough for you? try this one...
"The BBC further estimated that this still leaves national seller asking prices over valued by 16%"
and from Bloomberg:
"Greece’s sovereign-debt crisis risks infecting the rest of the euro region even if officials avert a default, threatening the global economic recovery, the International Monetary Fund said."
And here's some detailed video of the cream pie moment #splat
Yes, he was obviously attacked by one of the member of the Mo5 from Chch – maybe similar to whistleblower Sean Hoare, but not with a creamy pie and Kennedy also - who knows in today's wicked time and shoting Cheney have almost near a bush another one. What a Time 11:09 - almost.
The Murdock empire bribing police and tapping phone calls is just a side show to the real issue IMHO - massive political influence and corruption at the highest level. Blatant (Fox News) and clandestine (meetings with Tony Bliar via the back door at No. 10) that RM cannot blame on his dodgy underlings.
If this bothers you and you subscribe to anything from News Corp, Sky etc you might like to consider helping cut off that particular tenticle by cancelling.
Tony Blair
lol
Mr Fake smile
Most of those the majority vote for I find fake it seems rather obvious, but then again Im not hypnotised by alpha waves from the corporate tv BS...
lol heard about this tevo thing in NZ "it's free" well not quite lol what moron would fall for that scam?
I dont watch Tv and havn't for ten years its amazing how clear the mind becomes....
Corporate media monopolies?
mmm Cue Bono?
Small point - isnt it cui bono, not cue bono.........
lol..aye andyh
today must be the day...
its a word play, or people play....
think about it.... but ya right ill stick to Cui Bono
since some one else wondered that too...they actually got the person but not the play!
All the worlds a stage and war is set in a theatre...scripted...
;-)
FYI I forgot to put in that milk powder prices fell a further 5.1% overnight in Fonterra's auction. They are now down 20% from their March 1 peak.
http://globaldairytrade.info/Results.aspx
This will be painful for farmers because over that same period the the NZ dollar has appreciated 20%. That is a double whammy on the downside.
cheers
Bernard
China, the world's largest buyer of Iranian crude oil, has renewed its annual import pacts for 2011.
So, while Washington prepares to commit political hara-kiri, Iran is preparing to take away a little of the capitalist glow from New York and London. If the Chinese decide to start paying for their Iranian purchases strictly in Yuan, expect the trickle away from the dollar in energy pricing to become a stampede.
http://oilprice.com/Energy/Crude-Oil/Iran-Opens-Oil-Bourse-Harbinger-of…
More interesting info’s about the debt crisis:
For the financial world’s players, the Autumn 2011 shock will literally be the ground giving way beneath their feet, since it’s really the foundation of the global financial system, the US Treasury Bond, which will plunge sharply.
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