Another wake-up check for the New Zealand dollar. It fell a full cent overnight dropping to US83.10 cents continuing a downward trend that started on Friday. The Kiwi has fallen two cents since the end of last week.
Oil prices are also down. Crude light oil is currently trading at US$86.60 barrel. That's down from US$89.80 on Friday.
Stock markets in the U.S. will reopen today following a day of rest over the Labour Day long weekend there.
However, European markets saw some major shudders. (See Reuters' report here).
Stocks fell 4 per yesterday led mainly by the banking sector. The Stoxx Europe 600 Index saw its biggest two-day slump since March 2009. At the same time, yields on 10-year Italian bonds were up 27 basis points, continuing their biggest run of gains since the euro's debut in 1999. (See Bloomberg report for more).
Speaking at a conference yesterday in Europe, Deutsche Bank AG's Chief Executive Officer Josef Ackermann described the volatility and uncertainty as the "new normal." Ackerman said conditions in the stock and bond markets are starting to mirror 2008 when the global financial crisis was in bloom.
Meanwhile, U.S. president Barack Obama tried to restore some confidence in his home country yesterday previewing a major jobs packages to be revealed later this week.
Obama said stimulus will include new infrastructure spending and an extension of payroll tax cuts.
Closer to home, leaders from the 16 Pacific Islands are gathering in Auckland today as the Pacific International Forum gets underway.
United Nations Secretary-General Ban Ki-moon will also be attending for the first time this year and is expected to stress the need for action on climate change.
The forum, which marks its 40th anniversary this year, will reflect on its achievements so far, but it is being forced to defend itself against criticism of a lack of results. (See TV NZ report here).
Fiji, excluded from the forum since the nation's coup in December 2006, is expected to back on the agenda. However, Prime Minister John Key said it was "highly unlikely'' leaders would welcome the country back given the political situation there. (New Zealand Herald carries the details here).
A reminder to join us today at 1 p.m. for a live-web interactive with Milford Asset Management's Brian Gaynor. (For details on how to participate click here).
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16 Comments
The SFO released a brief statement late yesterday confirming it has dropped its charges against the late Allan Hubbard.
"Serious Fraud Office Chief Executive Adam Feeley has confirmed today that, as a result of the death of Mr Allan Hubbard, criminal proceedings by the Office against Mr Hubbard can no longer continue.
The Office will, at its earliest opportunity, be in contact with the District Court to take the necessary steps to bring the prosecution to an end.
In confirming this process, Mr Feeley noted that it would not be appropriate for the Office to comment further at this time."
Surely the SFO could thatch together an effigy of say...... straw...giving them the best chance of blowing the defence away under cross examination.
Maybe they could now redirect that buget to rounding up fraudsters lying around in homes for the bewildered.........after all it's all about winning isn't it..?
Stay in the sunshine a little longer ... we have missed you , us rational optimists ..... the gloomsterisationalisers will have their way and entice you back onto the darkside eventually ,
... stay a whiles longer ,... linger in the warm glow .....
Life is good , my friend !
Property investors banking on higher rents.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10749729
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