Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that fears about Europe's ability to solve its sovereign debt crisis returned to markets overnight.
Divisions emerged in how to expand the size of the writedowns on Greek debt with the European Commission opposing a plan to increase the writedowns for banks holding Greek debt.
Markets are also watching significant opposition to the so-called 'Bazooka' plan for a mega-bailout fund within Germany.
US stocks were closomg down around 0.8% and European stocks closed down 1% as Tuesday night's rally petered out quickly. See more from Bloomberg.
UPDATE - A late selloff saw the Dow close down 1.6% and the S&P 500 close down 2%.
Bans on short-selling of Italian and Spanish financial stocks were also extended, reinforcing the fragility of the European markets and bank stocks in particular. See more here from Bloomberg.
Markets are watching a key vote in the German parliament on an old expansion of the Greek bailout fund on Thursday night. Although it is expected to pass, Chancellor Angela Merkel may be weakened politically if she has to call on opposition votes for support. Some are even talking about the calling of new elections.
Also, concerns are growing about the fallout on Chinese industrial production and demand for commodities. Bank of America released a research report warning of a 'hard landing' in China. See more here at Zerohedge on that report.
Commodity prices, which are most sensitive to perceptions about growth in China, are slumping. Copper fell a further 7.6% overnight and Gold also fell a further 1.3%. See more here at Bloomberg.
Oil prices fell 3.8%. Even Coffee prices fell. See more here at Bloomberg.
All of this weakness in the global economic outlook and in commodity prices dragged the New Zealand dollar down.
It fell to 77.7 USc in early trade from over 78 USc
(Updated with US closes)
No chart with that title exists.
28 Comments
Bernard, I think we can call it a commodity crash, the red ink is across the board
http://finviz.com/futures.ashx
At least our milk will be cheaper. I see they have now found PSA in Kiwi vines in HB, the industry is slowly being destroyed, once growers recover, the finger pointing will begin and compensation from MAF sought. You dont get away with wiping out this big an industry.
" The daily Silver graph has completed a massive failure top. There are many downside targets in Silver, starting at $20 and extending down to $14... The story behind this post will be in the history books."
(Above caption link: http://peterlbrandt.com/ )
Nicholas, thats a good read, wow what a lot of money
You read the headline correctly, during the month of September Gold bulls and Silver fools lost a grand total of $29 billion — for those of you who cannot spell, that is $29,000,000,000!
Nic, that article made me feel quite queezie... Where is that chap who was always harping on about the long term virtues of gold and silver on this site... strangely silent!
Yep noticed that mahself...in fact mentioned it just yesterday and today....tsk tsk.deary me!
Yes, we should all be holding our assets in fiat currencies.
surely we can maintain ever increasing growth and ever increasing debt to match - all in the face of diminishing resorces.
yip our 40 year experiment with fiat currency is here to stay for the rest of time, all is well.
That big empty space at the bottom of your post looks mighty familiar there Foxyfolkfaced........eh...uh..? deary me.....
yes, and will become more so to everyone eventually
Whoo..! another clue....good use of the cryptic..!( big empty space)..that narrows it down a mite.......and I've never given Steven credit for seizing the gap ......so that leaves,....no wait..! maybe I have been unfair there......
i'd love to have a constructive discussion with you Christov, but you've gotten really boring.
lets go back a step - i am not a gold bug and i don't own any, in fact i have posted recently that gold is due for a correction.
I just want you to tell me how this continual growth model that is required for fiat currency is going to work - is it just going to keep on growing and growing forever? Let alone with shrinking resources.
tell me how do we pay back debt when at the time of our greatest potential (last 100 years) we have squandered the best of our available energy supplies (it only gets harder to get and more expensive from here) and managed to rack up current AND future debt obligations that are unsustainable, oh wait thats right we have fiat money. carry on then.
Well F/face unaware that I was defending the fiat currency position as the only position......I fail to see what there is for me to respond to....
As I have no wish to bore you ....I bid you good day...
P.S. if you'd ever read any of my posts ..I like to see a global reduction in human numbers ....I do suscribe tothe notion finite rescource....but I would choose to attack it at the source.....so I guess that makes me a sacreligious anti -growth heretic...
PPS.I apologise Steven...I think I remember now.. who this appears to be...very grand.
Bernard must be in a magnaminous mood , not reprimanding you for calling a fellow blogger " F/ face " , Count ! .... your lucky day .
... Have many more of them .. .. .. you too , fart face .
You are such a mischievious Bear Gumster..can't be left alone for a minute without giving B.H a reminder to take his omeprazole an a glass of milk......
Ah damn it F/face I feel generous today ...here some very interesting reading on the matter.
Thanks for the link, very interesting - i like it. so i guess we agree with each other then
So we can kiss and make up? For a minute there i thought you were going to reach through the screen and cut my throat.
You are right to call me a F../face i have been called that many times but after re-reading your posts i only now understand that you were implying i was someone else under a new user name - not so unfortunately.
Your loving F../face
Cheers FoxyFF..been known to get the wrong end of the stick myself a few times ...specially when walters involved......Stay well..! enjoy.....
P.S. good link that eh.!
Lovin' the community spirit there Christov/f/face
cheers
Bernard
Hmm, gold and silver also got caned in 2008. Silver dropped 58%...
To my mind you're better minted than printed - but time will tell.
Poll on stuff
"Do you agree "governments don't rule the world, Goldman Sachs rules the world?"
77% say yes.
Opinion's divided.. rc...Goldman Sachs say they don't .....leaving a minority opinion that say they do..!
Goldman Sachs should be turned into Squid Rings.
How quickly we forget. The Eurozone fiasco, consumed by the woes of Greece, and dominating the news headlines. Has cost the Global community a fortune. How long has it been going on for now? And who was in it right up to their armpits showing the Greek government how to cook the books and live the high life. YES. Goldman Sachs.
So who is advising the super city on how to raise mor debt using foreign currency instruments ? Don't they advise central govt too ? Dont get side tracked too far though , the real enemies are the central banks. GS etc are just the front face of the real criminals.
UPDATE - A late selloff saw the Dow close down 1.6% and the S&P 500 close down 2%.
On the race to the bottom, which nation comes first :
Greece, Portugal, Ukraine, a few surprises, USA… and then the domino effect.
Welcome to the depression http://www.youtube.com/watch?v=OPQxx15YtuQ
Who makes politicians accountable in this country ?
Bernard, when you guys from the media not starting to bother and question the current NZeconomic policies from the government New Zealand is among them sooner then we think. You guys should take a much firmer stand – “Hardtalk” is needed to make our politicians accountable.
Bernard is me again bothering you and your team - hello Alex :
Today 50 jobs - gone !
http://www.stuff.co.nz/business/industries/5705828/Job-losses-at-The-Warehouse
jobs at risk 28.9.2011
http://www.stuff.co.nz/business/5694103/15m-cuts-may-mean-NZ-jobs-go
Job losses are possible at New Zealand Post and Kiwibank.
http://www.stuff.co.nz/business/industries/4784769/NZ-Post-Kiwibank-job-losses-loom
Alliance Party spokesperson Trevor Hanson says the announcement of 41 job losses at Hillside was the direct responsibility of the Prime Minister and his policies.
"John Key is responsible. Minister of Transport Stephen Joyce is responsible. Dunedin National List MP Michael Woodhouse is responsible. KiwiRail management are responsible."
Kate Wilkinson has already allowed other Ministers to trample over conservation values, with proposals for mining in national parks being actively pursued. Now we see the loss of a group of specialised staff whose voices would have been hugely valuable in the policy debate.
http://www.scoop.co.nz/stories/PA1106/S00435/doc-job-losses-further-blow-to-conservation.htm
As Scorn for Vote Grows, Protests Surge Around Globe - it is only begining:
Wolly is not here - Christov a lot - is Christov Wolly ?
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