Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that European stocks jumped 4% overnight after European ministers talked about recapitalising banks, easing some fears for now about the stability of the European banking system.
European Finance Ministers meeting in Luxembourg on Tuesday agreed to examine a way to strengthen bank balance sheets to prevent contagion from Greece's sovereign debt crisis spilling over into the banking system. See more here at Reuters.
This followed the pledge of support on Tuesday evening by Belgium's government for Dexia Bank, which saw its share price slump more than a third. See more here at Reuters.
The jump in European stock markets came despite a three notch downgrade of Italy's sovereign credit rating by Moody's. See more here at Reuters.
US stocks were also stronger in late trade on the European banking hopes and on some mildly better than expected economic data showing the economy growing, albeit slowly, rather than slipping into recession. See more here at Reuters.
Oil prices also rose on some renewed hope for the global economy.
Brent crude rose more than US$2/bbl to US$101 bbl. An unexpected decline in inventories also fueled the first gain in four days.
The New Zealand dollar also rose with all the talk of higher commodity prices and some lifting of the gloom in Europe. It often rises and falls quite sharply in line with these perceptions about the global economy and commodity prices.
51 Comments
"India unveils world’s cheapest tablet computer Aakash to be sold for $35 as part of education campaign" Now I'm sure it's not an iPad, but I'll bet it does what most of us need a tablet to do. This is why the West is in such a pickle. We pay, what, >$800 for a tablet here, and the cost is closer to 1/20th of the retail price. Misllocation of resources and effort has to stop in our societies if we hope to rebalance our economies.
There is some truth in what you say NA but once you remove the govt tax theft from the price, and realise the $35 job will have limited functions, no support and no warranty.....a bit like buying a Lada!
Oh and I hear there is a bloke in Thailand who will do a root canal for you for $8!
This type of misallocation, is what I refer to, Wolly.
"Principals' association president Patrick Walsh said it would probably only be four or five years before iPads became compulsory, but the question remained as to who was going to pay. In lower decile schools, the Government needs to intervene and pay, or provide a subsidy..."
Granted NA but I would say they would be almost useless as educational tools in Indian schools or any others for that matter. Walsh is having a wee dream. The ipad will be replaced very soon by better technology at a lower cost to users in schools just as the big box computer died in the 90s, followed by the bigger box of tube screen crap.
Look for something in a thin 'carbon filiment' film that rolls away into a tube no bigger than a fat pencil that can also be used as a pen with a laser and not ink to write with and the whole thing will be solar recharged by the garment in which the owner or user will store it. Oh and it's ram and storage capacity will be remote in a better version of the 'cloud' concept.
What some of these fella's dont quite get is the ability of the ipad/technology etc to replace teachers.
I have often had a kid come home from school completely confused by their underskilled maths teacher. But problem solved with a simple online tutorial from kahn Academy.
The potential fro these online tools to replace teachers is unlimited. Go take a look and try a tutorial if you have doubts...
On that score you are quite correct rastus but you mistake the tools for the software. I recall when schools 'invested' fortunes into computers, only to see the hardware and software redundant before a year was out.
I was pipedreaming about what the tools of the future will be, not the software.
If you want to sober up, have a read of this. http://www.marketoracle.co.uk/Article30800.html
"Britain’s economy contracted even more sharply during the recession than previously believed and its recovery so far this year has been even more anaemic, according to official data on Wednesday that incorporated new information and methodology into the calculations".
http://www.ft.com/cms/s/0/91c809dc-ef34-11e0-918b-00144feab49a.html#axzz1ZwFvZBoR
Mark Weldon leaving NZX next year - https://www.nzx.com/companies/NZX/announcements/214718
Brilliant ! ...... oh happy day ...... frabulous , joy joy joy .... heeee-haaaaaaaah !
... um ,
.... " He will be sorely missed after his sterling contribution to the New Zealand Stock-Exchange , but has left to pursue his other interests , and we all wish him well . "
Yahooooo ! ... gone , he's toast .... aha ha de haaaaaaaaaaa ..
Apologies for the delay , VL ....... Gumbo has been caught up in a real life re-enactment of an old Hugh Grant movie , " Four Typhoons & a Funeral " .....
..... since my departure , I see that Patrick Smellie has set the record straight on Mark Weldon . Far from being a jumped up arrogant incompetent little prat as I ( and the entire Wellington taxi-cab industry ) thought him to be ... ... apparently he is a rare gem , who has single handedly rejuvenated the ailing NZX , and set it upon a profitable path , with screeds of derivatives available for investor trading ..
Silly Gummster .... I forgot that the NZX is indeed more profitable as a company in it's own right ; but it is horrendously less profitable as a place for Kiwi companies to list themselves as public entities , and thereby to access capital for their growth .
Screw the NZ securities industry , the NZX exists solely to create mega-profits for it's shareholders ( of which the awesomely brilliant and fab. Mr Weldon is the dominant one ) .
.... so all my humble apologies to Mark Weldon , for calling you a self-centred , self-serving , useless , slimey little arse .......
Sorry , Mark !
Looks like pro-Democracy protests are breaking out again in the one place the USA doesn't want democracy; Saudi Arabia
Love one of the coments left by the ZH readers:
Democracy® is a registered trademark of the United States of America. Unauthorized use will result in severe monetary and millitary penalties.
"Marlborough building consents approved last month totalled half the value compared with September 2010"
http://www.stuff.co.nz/marlborough-express/news/5741006/Building-consent-values-fall
Just 12 new house consents! Same number as in 010 but a much lower total value. Are we witnessing an end to the mcmansions? Are we seeing a move to small and compact and lower running costs? What will happen when the chch price jacking gets underway? When the real cost of insurance begins to sink its teeth into the economy.
The final straw will be when regional builders realise they have to ask for lower hourly rates or risk yet fewer new builds and sooner or late the reno work also runs out.
What jobs are there in Marlborough to support McMansions? I'd love to move there but there isnt even enough work for me in ChCh let alone a backwater like Blenheim.
Grapes? seem to be dying....the money is drying up I suspect....wonder how the council will survive that monoculture collapse.
I assume some of the McMansions are/were holiday escape homes?
My Father-in-law got a house built about 3 years ago....it cost way more than the estimates and the builders never finished it and what they did was shoddy (I spent some of teh last xmas hols fixing things)....they moved onto more profitable builds (I assume)....so I have little sympathy for tough times for them.....mind you I assume they will be down in ChCh making a mint at even higher rates.....its only 4 hours drive after all.
regards
It's not so much a backwater steven as a service centre for a vast area of sheep and beef farming, with large wineries, plenty of vineyards and many small enterprises...oh and heaps of summer sun.
The council seem to be chasing the livestock farmers for the mighty dollar. I suspect there would be a greater number of new builds taking place if the cost of labour were not screwed so high. Remember, there is gst on top of that labour bill. People are slamming the wallets closed and giving the banks the big finger on mortgage credit.
A major retailer is to open a massive store soon and yet the local market is shrinking. How that will play out remains to be seen.
Wolly, How many vineyards have got sheep running in them at the moment ? Usually a good indication of how the grape job is going. In SA (coonawarra, padthaway) the sheep are the only things keeping some of the vineyards afloat id suggest. Lots of the cellar door sales have shut down as not selling enough to justify anymore.
Haven't been for a drive through malborough for ages - might have to have a look when head back of chrismas.
Single malt whisky is at very competitive prices at the moment (a function of the recent NZ$ strength vs the UK pound). Well worth salting some bottles away I reckon (for the ultimate in Armageddon financial planning). Dalwhinnie 15 Years Old being sold today on the internet at $60 - cheaper than you can get it in the UK and or Europe.
Try some Michael Hudson logic.
http://michael-hudson.com/2011/09/debt-deflation-on-the-rise/
Long but worth the read.
Wikipedia is fast! http://en.wikipedia.org/wiki/Steve_Jobs
I've just returned from Wikipedia , and I didn't spot you peering around the information , St. Nick ... you're a crafty one !
... a sad day for technophiles . But let's celebrate the achievements of a remarkable man , Steve Jobs ... and an amazing company , Apple .
We were planning to build but with the cost to build an 'average' 200m2 house estimate of 450-500k I am just unwilling to lumber my family with a large mortgage when the economic climate is so uncertain.
From my experience of the design and build sector so far it is geared towards stripping as much money from your pocket as possible before anyone gets to pick up a hammer. The lack of expertise I have seen in the industry is demoralising. Dealing with the local council, trying to get their definition of 'building footprint' (because my architectural draughtsman didn't know) took three days of dealing with an idiot who had to send away for the file on my section only to say that he didn't know and I should make an appointment to talk to his superior.
Why is the whole design and build process so bloody hard?
It's only as hard as you make it, 69er.
It's complex because a while lot of wide-eyed egos thought they were 'worth' something.
When their 'asset' turned out to be a physically-depreciating piece of macinery like any other, they spewed. The'd also - through ego mostly - created un-needed complexity (compare a 100 year old cottage with a modern house).
You don't need complexity, you don't need 200 sqm either, I'd call that part of the arrogance/ego.
If you think outside the square.......I did 135 sqm for 50k, 5-6 years ago. Three inspections only needed. No pre-lining, for instance.
Most people just don't think. The moment you start thinking, you're ahead of 90% of the population.
Keep it in mind :)
I agree PDK but for many the building process is frightening and they have little idea how costs are jacked by all those involved and then presented as a great deal. In that respect, people should regard costs as being hiked about 40% higher than actual costs even with real wages included and gst.
Here's Apple's statement on Steve Jobs - http://www.apple.com/stevejobs/
Thanks PDK, if we could build smaller we would. We have a minimum size requirement written into the covenants and the property is on a slope (Wellington) so excavation/foundation work is required. There are several restricting easements on the property that make it tough to keep to a simple floor plan as the house will need to be split level or multi-storeyed. We could leave off the double garage (40m2) which would give us 160m2 (minimum size allowed), of which we need to take off around 20% for wall thicknesses, storage etc which would leave us a 128m2 floorplan. When you see it on the plans it isn't a big house. Council requirements for engineers reports/ geotech surveys/ resource consent fees and changes to the building code for extra strengthening/ insulation/ double glazing (although not a bad thing) have really pushed the cost to build up. We just want a simple, averaged sized, family friendly house that doen't leave a mortgage over our head into our retirement years.
No, the cost to build a home in Wellington was supposedly $1500 m2 when we bought the section a couple of years ago but has increased since then. The second link I've added says the cost to build in Wellington to a 'walk through the door' finish can be up to $3000 m2. Obviously if you go and spend $50k on an italian kitchen it serves you right. We are thinking of getting it built to a shell only stage and lining and fitting out ourselves. Bunnings kitset kitchen etc. We have been quoted 330k to build to the shell only stage.
http://www.dbh.govt.nz/bofficials-estimated-building-costs#map1
http://unconditional.co.nz/colinkelly/category/new-zealand-real-estate-market/
Yes 69er it is possible to drag costs back to near $1000sqm but this depends on what you build and where. I would hate to be faced with building on the side of wgtn given the new regs. Good luck to you mate.
You might be better off flogging the property even at a loss, and buying an older place in good nick and doing it up.
Those minimum size requirements really grate my cheese. I'd rather minimise the house, maximise the garden, and put the money into smaller amounts of higher quality materials and workmanship. The usual rationale that smaller houses drag down the values is moronic. Just price the bloody things by the square metre.
Got some good ideas for me Wolly?
There are sections available in Wellington for under 100K if you are happy to build under power pylons etc and you can get a Stonewood or A1 type of home off the plan for around 250K, so you'd be looking at around 350-400K all up. All of the new subdivisions specify either a minimum size or value of house as they don't want someone building a shack and lowering the tone of the subdivision. Personally I'd be happy with a house bus parked in the middle of nowhere but 'she who must be pleased' wouldn't go for it.
I can only suggest opening up your options to location and restoration. Personally I would rather restore an Edwardian than build a plastic box. I would rather be walking distance to the city centre etc than be forced to have and run a car in wgtn.
What suburb are you looking at?
69'er
I'm serious here - get Scarfie to design you one in Bondor panel.
I know an engineer familiar with the stuff, if you don't.
At 11kg/sqm, it's not an earthquake problem. Four people (me. partner and two teenage kids) put my shell up in 10.5 hours - and we were getting quicker as we went.....
Usually, a Producer Statement covers a lot of asses, and isn't a problem if you're not trying to be trick.
Yes it's always a shame Wolly...you'd be suprised how much is stolen just at shop level just because the perp believes they get it for nothing so no harm done.......or when they break in steal the safe on two seperate occasions getting a slap on the wrist from the courts both times ,and have the bloody cheek to turn up there with a winz quote.............Fact.
Wolly- Yes I restored our last house and did really well out of it. The problem is that I've not been able to find a house where the cost of doing it up added to the purchase price made any sense. Plus there ARE risks in buying old houses. Our last house had it's main load bearing beam propped up by a 4 x 2 at one end. The building report missed that one.
PDK- The Bondor panel looks interesting. I gather it needs a steel frame of some kind to support it? We need to use a double cavity system as we are in a high wind zone. Not sure whether we would need to clad over the Bondor panel but I would think we would.
What were your costs for using the Bondor panel? Did council give you a hard time?
Hi 69er,
First thing I would recommend if you are looking to build a house is to read a book by Christopher Alexander called "A Timless Way of Building". Get it from the library, but in the long run the investment in that and Pt II called "A Pattern Language" would be cheap compared to what you are looking at spending on a house. Should be around $100 on Amazon.
Secondly I would not be so keen to take on debt in this current environment, if that is planned. Depression coming I reckon.
I have done two years of an Architecture degree, but have taken this year off to concentrate on an invention of mine. I am a mature student, but topped my first year. I designed built my own home back in 98/99, a unique half round/groin vault design with a construction system I invented myself. 147m2 for 45K at the time, although my labour was free.
My interest is in how people relate to space. I have other qualifications in human behavioural science. Light and the configuration of space can make an enormous difference to your life.
Mate just don't do one of the out of the book designs available. They are universally crap, designed to maximise the profits of the developer/building company rather than give you a good space to live in. In general our built environment in NZ is appalling.
It is almost criminal to build houses in NZ that require space heating, we have ample capacity for passive solar. Two key rule are orientation and thermal mass. Think really carefully about what your orientation and location in the topography is. If no good then flick it to find something better. A more expensive section can actually save you in the long run.
I also have several senior registered Architect contacts I could put you onto. i have been in their homes and they have got the goods.
PDK or myself can help get you in the right direction, we have both done our own houses:)
"It is almost criminal to build houses in NZ that require space heating..."
It is almost criminal to provide an advice like that! Granted, one could (and should) maximise the advantage of a sunny position and retain that heat as much as possible by installing good insulation. But when it comes to a cold spell in the middle of winter, when it is raining (or snowing) and miserably cold for a week or longer, one must maintain a livable temperature and this means one must heat the space! This is even more so when you have a young family and want your kids to grow up healthy. Not heating is almost criminal indeed...
Thanks Interested2, agree with what you are saying. Our section is on the side of a hill, North/West facing. We were originally looking at concrete or ICF, but it was a bit on the expensive side. We would have to do a bit of excavating to be able to use concrete and then there are the costs of tanking etc. The cheapest method is wood frame over extended piles and then just insulate the hell out of it, or something like PDK suggested with Bondor panels perhaps. I have talked to a number of builders, most will only use H block and wood and they are reluctant to experiment with anything new. I really can't blame them after the leaky home fiasco.
I agree, the last thing I'd want right now is a large mortgage over my head- although it is hard to imagine at this point in time the effect the GFC will have on us down here in 'lil NewZillin. Maybe it won't notice us?
69er - re building house
A comment in Interest.co.nz in March
http://www.interest.co.nz/property/52574/jan-building-consents-down-17-year-ago-although-10-dec-monthly-trend-still-negative-stats-nz-fi
by petrus1942 | 08 Mar 11, 10:17am
Come down to the Manawatu
Come down to the Manawatu - I will build you our 220m2 house, 4 bed, int. access garage, 2 x bathroom, brick & Longrun roof - on concrete slab for $230,000 inc. gst. Thats $1045.45m2! Comes complete with heat pump (ducted to 4 positions). Excludes floor covering, land or any site work (drive,path etc) The building consent fees $4,300 inc. gst included. Drawing fees included. FIXED PRICE
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