90 seconds at 9 am with BNZ

90 seconds at 9 am with BNZ: Dow pares losses on 'substantive' teleconference to avoid Greek default; Obama unveils new tax on wealthy; A NZ$100,000 fish

20th Sep 11, 9:00am by Bernard Hickey

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news US stocks pared their losses in late trade after Greece reported 'substantive and productive' discussions with the 'troika' of inspectors from the European Union (EU), International Monetary Fund (IMF) and European Central Bank (ECB) over the next tranche of Greece's bailout package.

The 'troika' have delayed a decision on whether to grant the funds until early October, which is right at the last minute for Greece, which is widely expected to run out of cash in October. There were even some doubts about whether Greece would be able to find the cash for interest payments due tonight and tomorrow on bonds.

Greece is widely expected to have to announce fresh public sector job cuts to win the approval of the troika, all of which are inciting fresh political opposition. See more here at Reuters.

The Dow closed down 108 points or about 0.9%. It had fallen as much as 2% in earlier trade. See more here on US stocks on Bloomberg.

Meanwhile, fears about what a Greek default might mean for Europe's shaky financial system continued to rumble across European markets. French bank stocks fell 8-9% again and European stocks fell around 3% overall.

Italian and Spanish bond yields continued to rise over 5% despite recent emergency purchases by the ECB.

Meanwhile, US President Barack Obama has unveiled proposals for taxes on the wealthy to raise US$1.5 trillion over the next 10 years, including a "Buffett tax" on those earning over US$1 million and a US$100 per flight tax on corporate jet use.

But Republican opponents have rejected any suggestion of tax hikes, describing the moves as 'class warfare'. The proposals go before a super-committee that must agree deficit cutting proposals by November 23, which is shaping up as another debt ceiling type deadline that could roil financial markets.

Finally, a big congratulations to Jeremy Walker from Te Awamutu, who caught a 305.8 kg blue fin tuna off the west coast of the South Island.

The tuna would fetch around NZ$100,000 if sold in Japan for sashimi. See The Taranaki Daily News article here.

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40 Comments

by Mark Hubbard | 20th Sep 11, 9:33am 1316467993

The hypocrisy of Puffet's envy tax, and it will not solve any of America's problems.

by Vanderlei Luxemburgo | 20th Sep 11, 1:37pm 1316482625

Tribeless you're an Idealist. No more based in reality than a Communist or an Anarchist.

by Mark Hubbard | 20th Sep 11, 1:58pm 1316483922

Wake up, Vanderlei. Where do you think our crony capitalist social(alist) democracies are going ... look at the news: how do you think the US and Europe get out of the mess they're in? There's only two ways to go: on the existing path to full blown Orwellian States - and IRD in NZ already has the snooping and coercive powers envisaged by such a State - or, we go the other direction toward a classical liberal society, and laissez faire capitalism.

Call me an idealist, or whatever you like, doesn't change the reality of the crumbling, violent, Statist, world we live in. And what's so idealist about classical liberalism, we've had it before.

by Vanderlei Luxemburgo | 20th Sep 11, 2:17pm 1316485036

if you're talking about ideals tribeless, then yeah it is time for a cleanout. The democracy we have is horribly twisted and tainted. I still think that an ideology more comfortable with sharing would be better...

In the world we DO have though, the last 3 decades have been of a pretty libertarian bent, and all this deregulation has meant that greedy people have been able to drive us more quickly to the precipice. So in that sense, its been good.

Anyway I've just heard that my wife and baby have discharged from hospital so I'd better hoon off. I wish I could stay and banter more but family calls.....

by Gummy Bear Hero | 20th Sep 11, 2:22pm 1316485375

Enjoyed reading that last link , Mark . Most folks don't realise that prior to WW1 , charities in the UK were funded almost exclusively by donations from wealthy citizens . The work-houses , as appalling as they were , were efficiently run .... and an incentive to not be poor .

... after the British government took over the welfare of " the poor " , the numbers of said " poor " ballooned exponentially .... as did the taxes required to care for them , and the bill for the massive bureaucracy set up to run the whole shebang . The wealthy stopped giving to charity , they were now paying much more in taxes to the Chancellor of the Exchequer .

And here in the NZ , it is reported by the Waikato Herald that one woman has been on the DPB for nearly 30 years , having received ( an un-adjusted for infation ) $NZ 450 000 of tax-payers' money over that period . She has 6 children . And she is one of thousands in the Waikato who have been on the DPB for decades .

.... is this what welfare was designed for ..... is this a good use of tax-payers' money ?

by Mark Hubbard | 20th Sep 11, 3:04pm 1316487899

Vandelei: if you think the last three decades have a 'libertarian bent', then you know very little about politics or economics, and nothing about philosophy. This is further proven by the fact you think 'sharing' is somehow anathema to Libertarianism, although, a libertarian society is set up around protecting the rights of the smallest of all miniorities: the individual. That is the only moral stance: every alternative leads to the mass thuggery of tyrants over the individual that typified the 20th century.

And if you don't think you're living in a police state, trying taking a four year IRD audit and see if you still think that.

(But congratulations on the new family member: enjoy him or her. And teach it some classical liberal principles).

Gummy Bear Hero: Yeah, that last link was the find of the year for me. To get back to that, though, we have to get past 1984: won't be happening in my lifetime.

by Plebian | 20th Sep 11, 10:03am 1316469809

Bernard I thought you were going to congratulate Jeremy Walker for being a good kiwi bloke and spurning the $100,000 he could have sold his very large tuna for in favour of dressing the fish, getting out the barbie and sharing it with his mates.

by scarfie | 20th Sep 11, 11:04am 1316473479

I don't think it is quite as simple as that. To fetch the kind of money they are talking about the tuna has to be handled extremely carefully to keep it in prime condition. It would cost significant money to ship it on ice to market in Japan, and if it is bruised or blemished in any way it might fetch less than the shipping cost. I think five guys trying to lug the monster onto a small boat might not have left it in marketable shape.

by Christov | 20th Sep 11, 11:42am 1316475766

Yep ...half a cent already Ostrich...http://news.smh.com.au/breaking-news-business/aust-dollar-falls-on-italy-downgrade-news-20110920-1kif0.html

by powerdownkiwi | 20th Sep 11, 10:39am 1316471990

http://www.fao.org/fishery/topic/12251/en

"Some bluefin species (used for expensive sashimi) are, in fact, significantly depleted"

It's not about congratulations, nor about money. It's about one species now having the responsibility one offloaded to a 'god' or 'gods', re habitats.

"Scientists warn that continuing to fish the bluefin at current levels will push the population to 94 percent below the size it was before commercial exploitation began, effectively collapsing the fishery and putting some populations at risk of extinction".

Congratulations Bernard? Only an economist - or a flat-earther - could say that. You've had enough info posted here, to know better, quite frankly.

For Tuna read oil, for oil read developable land, read gold, read copper...... It's the story of our time, but - as Sir Paul Callaghan pointed out - it's not getting reported. (The irony is that a good investigative reporter, using no more than high-school science and logic, could sink Callaghan's approach, too. They're not getting to his stage, let alone the next).

by noponies | 20th Sep 11, 10:44am 1316472286

Totally agree. The bluefin is at a very strong risk of extinction. You may as well congratulate someone for shooting a kakapo.

by scarfie | 20th Sep 11, 11:11am 1316473897

I always cringe when I hear about how our 'managed' fishery is held up as an example to the rest of the world.

For anyone interested there was recently a report published on the health of the Hauraki Gulf . In short it isn't healthy at all. Freely available at all public libraries for anyone interested.

I met a marine biologist a few weeks back that has been working in the area for 40 years and was invovled in putting the report together. Decimated is the word used to describe the area.

by Kakapo | 20th Sep 11, 11:40am 1316475619

Agreed. It's just slightly less effed up than the others.

by Christov | 20th Sep 11, 12:14pm 1316477671

Here ..!here..! scarfie......unfortunately decimation comes with accessibilty ...thats your bigges problem with the Hauraki Gulf........I love my fishing and Kakapo hunting a lot and over many years have been gutted to see the individual greed that goes on amongst the recreational fishing community.

That is not to say it's the majority of fishermen not observing the law, or even indeed taking less than the quota provides for....the problem is the ten percent who rape the area when it's running can sadly have a dire impact.....

We have some tough penalties that are not being enforced without mitigation.....no excuses from trawler to pleasure craft to kayak...no excuses just take the craft first time..plus fine according to the full statute...I guarantee they don't do it again......

I do believe while the Kaipara (home of the origins of snapper) is in good shape over the last three seasons despite the kawhai stocks taking a big hit from the pet food industry.... but the fact that it's quite often inaccessable is it's saving grace.

We all need to care enough to want fish there for tomorrow.....hands on from all ...you see it you report it...

On the persoal responsibility...you got a feed....just take what you need.....

Oh just kidding about the Kakapo.....but that dont mean the pesky buggers don't look tasty.

P.S. Bernard..I don't wanna come across as snobish about this but I just don't get sport fishing....hook the bastard ....torture the bastard for an hour or two...stick a foreign dart in him like he's owned...cut im loose for somebody to enjoy the thrill all over again.

If it's too big to eat with minimal waste then...?

The tuna operation out of South Austraila there is worth a look at to see all the requirements that must be met for the Jap market...very well managed operation too with a big Kiwi connection.

by powerdownkiwi | 20th Sep 11, 12:37pm 1316479051

Christov - you sound like the Labour Party - into conservation while being into growth.

Oxymoronic, in other words.

If you're talking of the 'take it and raise it' aquaculture initiatives in SA, the same question applies one tier removed: The operation needs a supply of nutrient (I see it as a supply of energy and a food-chain issue).

If you take that nutrient/energy/food from the existing ecological balance, you're triaging. Something must miss out, and in equal amounts. There's no free lunch.

I regard folk like Heatley as criminals - and comments like BH's above, as aiding and abetting. Ignorance - last I heard - is no legal excuse.

by Christov | 20th Sep 11, 12:56pm 1316480200

Yes sometimes PDK there is no escaping the Paradox of things.....into conservation......? probably about things I'm precious about....and that would be based on self interest at this stage........I want to be able to paddle out ...not too far in ten years and get the same result I get now......do I think so...?...frankly I don't know...but I will remain involved.

The growth of any species is usually at a cost to others.......it's inevitabley about occuping space...usurping resource to fill that space in a different way.....I'm well aware of what we are PDK in terms of our parasitic nature and our ability to proliferate to the point of pointless.....but I don't fancy killing myself to relieve part of the problem anymore than I want to stop catching and eating fish.

In there lies the conundrum.

by Christov | 20th Sep 11, 1:37pm 1316482677

Oh by the way..PDK...sound like the Labour Party..? if they have made a sound they may need to squeak up a bit as I having trouble hearing them a the back.....I'd long forgotten we had any real oppostion on the windblown rock here.....!....and the Greens will bed up with most anybody that assures their continued existance........even at the risk of contradiction.

My opinion posted above was more about personal responsibility than policy chanting.......aside from a desire to see current penalties available to be enforced with extreme prejudice ...

by scarfie | 20th Sep 11, 2:43pm 1316486630

Count I don't believe it was ever the recreational take the caused the real damage, if so the damage would have been slow and progressive. I wasn't really as the damage was done in the 70's and through into the 80's by commercial boats. Recreational users never targeted Kahawai in the numbers that the purseiners did.

Interesting that you bring up the Kaipara, as I fished there a lot for a few years in the late 80's. My fishing buddy from back then still lives on and fishes there, and the fishery is nowhere near as good as it was 20+ years ago. We could see the damage being done when we travelled down the Hoteo River one day and one entire bank of the river had flounder nets down it. Perhaps 1 Km of net! There is no way the recreational take could ever compete with that. The graveyard in particular is one area that is a shadow of its former self.

Tell me have you ever bought into the 20% maximun sustainable yield theory.

by Christov | 20th Sep 11, 3:07pm 1316488067

Scarfie I believe the conversation was on the Hauraki Gulf.....and no I don't think recreational is entirely responsible for diminishing stock numbers...although who counts em I don't know...most info is gathered on catches not spawnings.

I can suspect daylight robbery till I'm blue in the face from Commercial trawling...but what I decided to share was what I ..Know.... and see.... and will do something about when I do.

The Kaipara may not fish as well in some locations...but I fish it regular enough to know I haven't noticed any drying up of stocks in the last ten years....and buddies of mine who live up round Port Albert tell me it's been the best coupla seasons for some years up their way....go figure..? still not three bad as far down as Shelly Beach Hellensville

I think I pointed out that the pet industry targeted the kawhai in large numbers not the recreational ...so I 'm not sure what you meant.

in answer to the 20% maximum sustainable theory....in relation to Orange Roughy..../ or generally...

Not my field of expertise I'm afraid, either MSY or OSY have any number of scientific variables that would require a lot of learning on my part.

Bottom line personal responsibility.....all the way down and up the line.

by Christov | 20th Sep 11, 3:20pm 1316488833

Just a question scarfie....when you saw all those nets on the Hoteo inlet ...did you make any inquiry as to the legitimacy of those nets...or indeed did anybody on your craft follow it up...?

Don't get the wrong end of the stick here.....as it's mostly what people assume is a bonafide operation...till you test it.

by scarfie | 20th Sep 11, 4:41pm 1316493702

No we didn't enquire into the legitimacy, but we knew the fisherman and he seemed pretty a pretty straight up family man. I think he was working withing the framework that was permitted. I must enquire as to whether he still operates. You might even know him.

My comments re Kahawai were to reflect the fact the recreational fishers target one species fo the most part, whereas the decimation is across the board. Both a close relative and said marine biologist witnessed the carnage of the 70's first hand. Both were divers and were able to see the noticeable difference under the water. My relative gave up diving because there wasn't anything more to see, it was almost completely wiped out.

How about looking at it from this angle. In Auckland there were 6-700K people at the time, now there is double that. Double should equal half the stocks but we way down on that, and especially short of large fish that control other species. I guess would be that the exploitation by commercial fishing was not just supplying Auckland, but probably enough for another couple of million Japanese. If the Japanese(or who ever) want fish, then why don't they manage their own back yard. A bit of a moral issue in behind:)

Count my fishing buddy actually works for Sanfords would you believe! What goes on is not pretty. I have been assured that the hold contains quite a different load when a MAF inspector is on the trip. Some of what he has done, and told me, would cost him his job.

by Christov | 20th Sep 11, 5:06pm 1316495196

yes scarfie .. I've no doubt the commercial industry is probably involved in backhanding....among various other deceptive practices....but as you say it takes proof ...and even you mate who was in a position to see quota theft would have been able to do litlle without hard evidence....I can understand the fear of losing his job takes precident....but if you take my meaning...many things like this are the blind acceptance of corrupt practices because..A...everyone does it..B...no one else does anything about it so why..?..C. The penalties available are not enforced in accordance with the law....especially if that law will cost a quota thief his livelyhood.

theft is theft....you start sliding the scale.... you start mitigating the outcomes.... F*%k em I say.

by scarfie | 20th Sep 11, 5:23pm 1316496232

No argument on that. Amen.

by Christov | 20th Sep 11, 8:43pm 1316508199

Cheers Scarfie ...go look at this ...check out what the forum cannot do and ask yourself...geesus what hope have we got uh..?

http://www.arc.govt.nz/albany/index.cfm?2137E2E7-145E-173C-9818-94058B87C940#The Forum cannot

by scarfie | 20th Sep 11, 10:07pm 1316513223

Just a bloody talk fest. So are these people actually paid?

by scarfie | 20th Sep 11, 10:20pm 1316514057

I did actually have small win with the ARC, which was a considerable surprise i must say.

Check this out. I was submitter #39 and 8.2.2.1 (a)(b)&(c) are a direct result of my submission. Was a spur of the moment thing, but being an environmental organisation they couldn't ignore my proposal:)

They didn't of course go far enough, as I suggest walking, cycling or horses as an alternative for park management. I also suggested that all transport fuels for each park be souced from within each park. Maybe next time.

I hope you read this to PDK, as you know where the idea came from.

by goNZ | 20th Sep 11, 2:35pm 1316486142

10 outa 10 for todays most nauseating pc goody goody comment

by Christov | 20th Sep 11, 3:11pm 1316488292

.....

by goNZ | 20th Sep 11, 2:37pm 1316486269

10 outa 10 for todays most nauseating pc goody goody comment

by Christov | 20th Sep 11, 3:11pm 1316488269

Say some thing once why say it again...? which comment GONZO..?

by powerdownkiwi | 20th Sep 11, 3:50pm 1316490626

With a comment like that from the wee one with the funny nose, you can rest assured you're on the right track, Count.

Go well

by goNZ | 20th Sep 11, 4:04pm 1316491493

meant to go under reply to pdk ravings - dunno how it got under yours

by David George | 20th Sep 11, 10:45am 1316472304

NZ Herald:

"Chinese telcos are reportedly planning to enter the transtasman cable market and build a submarine internet pipe between Auckland and Sydney.

Australasian telecommunications news service, Communications Day, says Axin Ltd is teaming up with Huawei Marine to build the US$100 million internet cable.

Huawei Marine is a partly-owned subsidiary of the Chinese telco giant Huawei, while Axin is a newly-formed company that China Telecom has a 51 per cent stake in.

According to Communications Day, financing for the cable has already been approved by the Export-Import Bank of China and work could start by the end of this year"

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10753031

This is precisly the type of investment we (NZ super fund, NZX, Kiwisaver funds & "mum & dad") should be underwriting. But no, JK & co have other plans for us - buying stuff already built and that we already own. So we end up with Chinese Telcos clipping the ticket on Kiwi households and businesses ad infinitum.

How dumb is that?

by rc | 20th Sep 11, 11:15am 1316474111

So its a race between the chinese & Pacific Fibre?

EDIT: Looks like the chinese are also in on Pacific Fibre?

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10747035

Surely there are other NZ investors who could put money behind this. Maybe even a float on the NZX?

by David George | 20th Sep 11, 11:48am 1316476088

That's right rc and what grates my gears is that while Tim Grosser is out grovelling to overseas investors the rest of Government is telling us we need to flog off our power stations 'cause we don't have enough worthwhile domestic investments.

It's about time we were told the real reason they want to sell our SOEs

by rastus1 | 20th Sep 11, 12:36pm 1316478974

gotta grab that last 85% somehow...

and no doubt it will be subsidised to to to the point where compettion is irrelevant..

Nearly 15 percent of the world's Internet traffic -- including data from the Pentagon, the office of Defense Secretary Robert Gates and other U.S. government websites -- was briefly redirected through computer networks in China last April, according to a congressional commission report obtained by FoxNews.com

Read more: http://www.foxnews.com/politics/2010/11/16/internet-traffic-reportedly-routed-chinese-servers/#ixzz1YRqyZnCb

by Christov | 20th Sep 11, 11:47am 1316476076

Here's a good read......well good no....informative yes....conspiracy no....need to know info being witheld in the ECB yes....the fed likelyhood of knowing the detail....highly probable.

http://www.creditwritedowns.com/2011/09/piling-on-sp-italy-downgrade.html

by Andrewj | 20th Sep 11, 1:44pm 1316483060

Chistov, this is another good article on the problems facing the UK, they have Cameron, while we have Bill E careering around the world, wonder if they ever cross paths?

http://hat4uk.wordpress.com/

David Cameron is careering around the world to tell everyone how GREAT Britain is, and Danny Alexander is going to hire 2,250 tax inspectors to stop evasion. But it all sounded rather thin this afternoon when a £12 billion hole in the deficit reduction budget appeared as if by magic

by Christov | 20th Sep 11, 2:47pm 1316486864

Good read AJ...I went n had a look at Why Britian should be on a War Footing...as well..also very good read.

by OMG | 20th Sep 11, 3:30pm 1316489441

Italy's sovereign debt rating cut by S&P on growth fearItaly has had its sovereign debt rating cut by Standard & Poor's, the latest move in a deepening European debt crisis.

S&P cut its rating one level to A/A-1 from A+/A-1+, adding that the outlook for the country was "negative".

It cited fears over Italy's ability to cut state spending and bring its finances in order.

http://www.bbc.co.uk/news/business-14981718