Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the Dow closed up more than 250 points or 2.2% after Hurricane Irene proved less disastrous than feared.
Insurers had expected losses of US$14 billion but the current loss estimate is for less than US$3 billion. See more here at Bloomberg.
Also, US consumer spending growth of 0.8% in July was better than economists' forecasts for a 0.5% rise. Americans bought more cars and airconditioners during the very hot month of July. See more here at Bloomberg.
This improved appetite for riskier assets saw the New Zealand dollar rise overnight to 84.5 US cents, its highest level since August 4.
Meanwhile, Greek stocks rallied 14% after EFG Eurobank and Alpha Bank announced a merger. This was the biggest rally on the Greek stock market in 21 years. See more here at Bloomberg.
Closer to home, Wellington property developer Terry Serepisos is being forced to sell his entire property portfolio valued at NZ$223 million to satisfy the receivers for his financiers, South Canterbury Finance and Equitable Mortgages. See more here at TVNZ.
Serepisos is hoping to run an 'orderly' sale of his assets, which include 150 residential properties and 6 commercial properties.
Serepisos' lawyers even went as far as saying that a 'fire sale' of the assets would create an 'economic and social catastrophe for Wellington.' See more here at Stuff.
No chart with that title exists.
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Market crash 'could hit within weeks, warn bankers
A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets.
Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago.
Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender's bonds against default is now £343,540.
"I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank."
http://www.telegraph.co.uk/finance/financialcrisis/8721151/Market-crash…
ho hum....
regards
It's worth getting up early to read stuff like this: Put your money on cunny.
"The Labour Party's leadership issue today saw its senior MPs accusing each other of leaking inside information to destabilise Phil Goff.
Even though the election is still 88 days away the party’s MPs are already dividing into camps over who will take over the leadership.
The hunt is on for the source of the leak coming from Labour's most senior MPs.
Trevor Mallard's seemed to be taking aim when he pointed toward Shane Jones' office today, but would later claim he was pointing towards the toilet.
Labour's 10 front bench MPs might meet behind closed doors, but one of them can't keep their mouth shut. Word has leaked out about a heated discussion over Goff's leadership and the blame game is underway"
Thats why I paid off $300K mortgage in under 8 years.
I knew debt would become an issue someday. Glad I have no debt now, interest rates will rocket and when jobs start going banks will then want their money owed so house prices will plummet along with bank liquidity.
Time to buy a rifle, few ounces of gold and stock up on basics, (wood, flour, sugar, soy etc). She will get very messy in the next 2-3 years.
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