90 seconds at 9 am with BNZ

90 seconds at 9 am with BNZ: NZ$ weak after Double Downgrade and sharp late fall in US stocks on global economic and Eurozone fears; Greece misses targets

3rd Oct 11, 8:57am 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 the New Zealand dollar is opening on its lows after Friday's Double Downgrade of New Zealand's sovereign credit rating.

The New Zealand dollar was wobbling just above key support levels around 76.2 USc in morning trade. See more here in BNZ's currencies report on our site.

This followed the downgrades and a very weak close on US stock markets on Saturday morning. See more on the downgrades here.

The S&P 500 ended the week down 2.5% and the Dow fell 2.2% as fears grow that the largest parts of the global economy are slipping back towards recession and that China may face a hard landing in its economic slowdown. See more here at Bloomberg.

European stocks fell around 1.5%, again on nagging concern about the European Sovereign Debt crisis.

As if to confirm those fears, Greece announced on Monday morning NZ time that it would miss its budget deficit targets for 2011 and 2012.

It said it would post a budget deficit of 8.5% of GDP this year, well above its 7.6% target. See more here at Reuters.

Protestors also blocked access to key buildings for the 'Troika' of inspectors due to decide on whether Greece gets the next tranche of a bailout needed to avoid default.

Meanwhile, protest over Wall Street bailouts is going viral. A group of 700 "Occupy Wall Street" protestors were arrested over the weekend for blocking the Brooklyn Bridge. See more here at Reuters.

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23 Comments

by Kunst | 3rd Oct 11, 9:07am 1317586048

Time for a better world or is it already to late and more capitalistic swine’s roam the world destroying societies ?

All across the western world, governments and major banks are rapidly becoming insolvent. So far, the powers that be are keeping all of the balls in the air by throwing around lots of bailout money. But now the political will for more bailouts is drying up and the number of troubled entities seems to grow by the day. Right now the western world is facing a debt crisis that is absolutely unprecedented in world history.

http://www.blacklistednews.com/Prophets_Of_Doom%3A_12_Shocking_Quotes_From_Insiders_About_The_Horrific_Economic_Crisis_That_Is_Almost_Here_/15950/0/38/38/Y/M.html

As members of the 99 percent, we occupy Wall Street as a symbolic gesture of our discontent with the current economic and political climate and as an example of a better world to come. Therefore we invite the public, our fellow 99 percent, to join us in a march on SATURDAY AT THREE, starting from LIBERTY PLAZA (ZUCCOTTI PARK) at LIBERTY & BROADWAY.

https://occupywallst.org/

by Christov | 3rd Oct 11, 9:26am 1317587177

By Jingo Walter youv'e picked the pace up and become a right little activist....uh..!...see you on the hustings....!

by Kunst | 3rd Oct 11, 10:11am 1317589893

Christov – what is the solution for the younger generation standing in front of a massive “money sucker” machine trying of catching some notes for a living ? You either “slave your socks off” catching some or you go united and switch off that bloody machine. That greedy, omnivore vacuum cleaner needs to be destroyed – before the monster destroys societies.

by Christov | 3rd Oct 11, 10:36am 1317591375

Even revolution through reform has to have a plan Walter...otherwise all that exists in it's wake is a vacuum......a lot like chess in it's deliberation.....a lot like sport in the undoing of your opponent comes in knowing your enemy........targeting the weakness untill it's a sore...then a wound ...then a gaping hemmorhage.....

We live in a world where the institutionalised media are being superseded by social media.......and so weaknesses are exploitable for extended periods of time.

It's always about hearts n minds Walter........Rome wasn't built in a day...it wasn't burned in one either.

In closing I would always add ..........if there were less of us then........?

by Kunst | 3rd Oct 11, 10:51am 1317592302

Christov - that's why I still like the well organised and executed military style door to door "Capitalistic Swine Hunt -Operations" CSHO - in Zurich, London, NY, and other similars.

CSHO = Centre of Study of Human Origin

by skudiv | 3rd Oct 11, 12:36pm 1317598595

Will the 99% become content with their lot, and continue to create wealth for the 1%? Maybe.

Will the 1% change and deploy wealth in a way that improves humanity? Not likely.

Has the illusion that anyone and everyone can get rich been dispelled? Not yet.

This exploitation has been going on for thousands of years and although it is time for a better world it will probably take more then a debt crisis that is absolutely unprecedented in world history.

by andyh | 3rd Oct 11, 9:35am 1317587747

As I mentioned over the w/e keep an eye on Morgan Stanley - its share price fell sharply on Friday and there is much comment that its exposure to Europe could blow it up.

by Casual Observer | 3rd Oct 11, 10:25am 1317590736

Woolworth's Australia are freezing the price of apples, carrots, tomatos, potatos and onions for a year.

Coles have dropped the price of home brand bread to $1 a loaf.

http://au.news.yahoo.com/video/national/watch/25824055/

by Andrewj | 3rd Oct 11, 10:29am 1317590940

Matt Taibbi on the evolution of the Occupy Wall Street protest

http://current.com/shows/countdown/videos/matt-taibbi-on-the-evolution-…

by Bernard Hickey | 3rd Oct 11, 11:18am 1317593938

FYI Greece have just announced a new austerity plan to try to win the next tranche of bailout funding.

http://www.bloomberg.com/news/2011-10-02/greece-approves-8-8-billion-in-austerity.html

Greece’s government approved 6.6 billion euros ($8.8 billion) of austerity measures including firing state workers, to show it can trim itsbudget deficit enough to secure a pending aid payment and a second rescue package.

by Kunst | 3rd Oct 11, 11:26am 1317594380

Greeks should eat more bananas.

by steven | 3rd Oct 11, 11:56am 1317596202

So its clearly buggered beyond hope....

regards

by goNZ | 3rd Oct 11, 12:22pm 1317597778

Key hits highs in polling ladder

Massey University's Dr Claire Robinson says with election day less than two months away, she's not expecting a lot of movement.

"We might see some movement up or down in Labour, I think there'll be a bit here and there in National, but I think basically National is looking for the first time ever, as coming somewhere in the 50s," she told Newstalk ZB's Mike Hosking.

Dr Robinson says Labour has some good policies, but they're just not getting anywhere.

"I don't think that the Labour vote is going to start returning until after the election and if they change their leader," she says.

She says Labour will struggle around the 28 to 30 percent mark.

by Gummy Bear Hero | 3rd Oct 11, 4:48pm 1317613698

The electorate is focused on the RWC . As bad as the credit ratings downgrade was , it will roll off teflon-JK alike water off a duck's back , at the next poll .

..... these polls have been consistent for some time . The electorate hate Labour . Memories of Clark & Cullen linger on . Another 3 years may mitigate that mill-stone .

But one fact is simple , people don't like Phil Goff . He may be a genuinely nice guy in private , but his public persona is bland . No charisma , no pizzazz , no bloody half decent policies , just more of the ubiquitous tax and spend-fest shite .

.. of course no one will challenge Goofy's leadership now , this close to the election , that would be a suicide mission . Best wait til after the election , and try to gather some power from the ashes of Labour's annihilation .

3 more years Labour , 3 more years !

[ p.s. Goofy , kindly tell your list MP's to shut the feck up ! .. having one of them launch a vitriolic attack upon the Mad Butcher was just brain-dead stuff . Mad Butcher is a true Kiwi success story , a really decent guy , and he is currently battling cancer ..... ]

by andyh | 3rd Oct 11, 12:40pm 1317598839

Australian manufacturing sector contracts further:

http://www.aigroup.com.au/portal/site/aig/template.MAXIMIZE/home/?javax…

Its a good job their mining sector is going gangbusters off the back of never ending increasing demand from China.

Oh hang on a minute.........

by Andrewj | 3rd Oct 11, 12:42pm 1317598934

You better all ahve a read of the first audit of the US FED

http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-620…

found it on the Telegraph here is the comment
likeitis 2 hours ago

The first ever GAO audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill (HR1207), so that a complete audit would not be carried out. Ben Bernanke, Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve nearly 100 year history were posted on Senator Sanderâs webpage earlier this morning.

sanders.senate.gov/newsroom/ne...

What was revealed in the audit was startling:

$16,000,000,000,000.00 (TRILLION) had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the worldâs banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest.

Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs. To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is only $14.5 trillion.

The budget that is being debated so heavily in Congress and the Senate is only $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world. In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion. ****

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self-identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and super-corporations like Halloween candy. The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows:

Citigroup: $2.5 trillion($2,500,000,000,000)Morgan Stanley: $2.04 trillion ($2,040,000,000,000)Merrill Lynch: $1.949 trillion ($1,949,000,000,000)Bank of America: $1.344 trillion ($1,344,000,000,000)Barclays PLC (United Kingdom): $868 billion* ($868,000,000,000)Bear Sterns: $853 billion ($853,000,000,000)Goldman Sachs: $814 billion ($814,000,000,000)Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)JP Morgan Chase: $391 billion ($391,000,000,000)Deutsche Bank (Germany): $354 billion ($354,000,000,000)UBS (Switzerland): $287 billion ($287,000,000,000)Credit Suisse (Switzerland): $262 billion ($262,000,000,000)Lehman Brothers: $183 billion ($183,000,000,000)Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)BNP Paribas (France): $175 billion ($175,000,000,000)IT WILL BE INTERESTING AS TO HOW MUCH ATTENTION (AS WELL AS THE SLANT) THE MAINSTREAM MEDIA GIVES THIS UNBELIEVABLE POSITION OF OUR GOVERNMENT HAS PLACED US IN WITH NEVER PREVIOUSLY HAVING AN AUDIT OF THE FEDERAL RESERVE.I AM CONFIDENT THAT WE WILL HEAR SOMETHING LIKE THE FED HAD TO GIVE STIMULUS TO WHOM THE $16 TRILLION WENT TOO BECAUSE IF WE HAD NOT ALLOWED THIS IT WOULD BE THEIR COLLAPSE AND THE OURS.

by Christov | 3rd Oct 11, 1:01pm 1317600107

Cheers A.J. i was only this morning reading up on the Wells Fargo downgrade on Sept 21st....and some very interesting related articles ...start at bloomberg...go from there...oh itstinks to high high heaven.....

Gonna be some trouble yesireee bob.!

by Andrewj | 3rd Oct 11, 1:06pm 1317600364

more worried about those Aussie banks, sentiment is turning. I linked to it in the comment below

>>>>>>

Australian banks, which have been major users of wholesale funding markets, are among those getting caught in the new crunch. Credit default swaps on the bonds of National Australia Bank and Australia and New Zealand Banking Group are not far off double the level they were just two months ago and last week reached 12-month highs.

by Andrewj | 3rd Oct 11, 12:55pm 1317599752

pleased to read its not that bad.

screwloose 51 minutes ago The figures posted on that link are very overstated as they are not term-adjusted - a $10 billion overnight loan rolled for thirty days is still only a $10 billion loan; in those figures, it's shown as $10B x 30 or $300 billion.

The reality is $1.14 trillion in total loans secretly extended - quite concerning enough; particularly as RBS was the second biggest borrower and Barclays the fourth.

Rob Kirby will explain it all:-http://news.goldseek.com/GoldS...

by Wolly | 3rd Oct 11, 12:57pm 1317599820

"Greek cabinet is expected to approve a contentious plan Sunday to lay off state workers"

http://globaleconomicanalysis.blogspot.com/

Anyone care to take a stab at the % pay cut for members in the Greek Parliament, decided by the members in the Greek Parliament!........

by Andrewj | 3rd Oct 11, 1:00pm 1317600017

Wolly, a bit in here about Aussie banks

http://www.telegraph.co.uk/finance/financialcrisis/8802846/Banking-cris…

by Christov | 3rd Oct 11, 1:05pm 1317600337

Your not thinking downtrou for ANZ there are you Andrew.......

by Andrewj | 3rd Oct 11, 1:10pm 1317600603

more like a sprint to town and the ATm machine. How do lowly depositors get covered bonds?