Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news European stocks rallied sharply on hopes the US Federal Reserve may agree a third round of quantitative easing or money printing at its two day policy making meeting later this month.
This followed comments from one of the members of the policy making group that he would like more stimulus, however 3 other policy makers dissented last month on the issue of stimulus.
US stocks rose around 0.5% overnight after US factory orders were better than expected. See more here at Bloomberg.
Factory orders rose 2.4% i n July on more demand for cars and aircraft. See more here at Bloomberg.
There was a blow though for Dow component AT&T, which has had its deal to buy T-Mobile's US arm blocked by Anti-Trust authorities. Its shares fell. See more here at Bloomberg.
However, US private sector payrolls figures rose 91,000 in August, which was less than economists had forecast. This is an indicator of the key non-farm payrolls figures due on Friday night.
Meanwhile, back in New Zealand, Finnish coffee cup maker Huhtamaki has announced the closure of a factory in New Lynn and the loss of 125 jobs as it moves manufacturing capacity to Thailand, India and Vietnam.
Also, Rakon announced yesterday the high New Zealand dollar was the major drive for a warning of a 44% fall in profit. Its shares slumped.
See more here in our earlier article.
The New Zealand dollar was solid over 85 USc this morning.
(Updated with links)
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7 Comments
"“Used wisely and in moderation, (debt) clearly improves welfare. But, when it is used imprudently and in excess, the result can be disaster...And disaster we have. We must prepare for a long hard slog, for the rest of my life and yours.
Yep....however not everyone....the super rich and Pollies will clearly not have a hard slog.
regards
Disagree Nick. The world's economy has been here before and it always comes bouncing back better than ever.
The thing to do now is position one's self to benefit from the bounce back.
Gosh it's bumpy being dragged along the seabed....say there are no big holes in the sea bed..right...please say there are no holes...!
errrrmmm.... Anyone have access to the FT..... "Chinese tycoon seeks to buy tract of Iceland"
"the president of the Republic of Iceland Olafur Ragnar Grimsson proudly announced that, after the crash of 2008, contacts are now more intense with China than with all European heads of government and the US combined; leaving us puzzled what the deals might be about."
When I think of Iceland (stop it Bjork).... I think geothermal....minerals/power etc.... a volcano, earthquakes...
"Labour would turn dole payments into apprenticeships subsidies to tackle youth unemployment rates, leader Phil Goff said today.
Mr Goff unveiled a $251 million package aiming to leave the 24,000 currently unemployed teenagers either earning or learning within three years." herald
Yup..let's move the deck chairs again....and this would cost what..because for every handful of unemployed you would need a skilled teacher of the trade...Goofy forgot about that....and he also failed to expalin where the few who qualified would find work...oh dear...another pipedream.
But he is right...it would reduce the number who were on the dole...doh!
By the way...what trade can you master in three years?
So Ring got it right....hmmmm....what will this latest one so shallow do to the rebuilding programme?
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