Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news US stocks and the New Zealand dollar fell overnight as doubts emerged that Europe could find a solution to its sovereign debt crisis at a summit this weekend.
A spokesman for German Chancellor Angela Merkel said the crisis was unlikely to be solved at this weekend's summit of European leaders in Brussels and could extend well into next year, dashing the hopes of many built up over the last 10 days that Europe was determined to save the Eurozone.
"Dreams that are taking hold again now that with this package everything will be solved and everything will be over on Monday won’t be able to be fulfilled,” Steffen Seibert, Merkel’s chief spokesman, said at a briefing in Berlin, Bloomberg reported. The search for an end to the crisis “surely extends well into next year," he said.
There remain disputes over the size of the haircut on Greek debt that European banks will take and who will pay for both an expanded European rescue fund and the recapitalisation of European banks. Bloomberg reports Deutsche Bank's CEO Josef Ackermann saying he did not want a big Greek haircut and other bankers have said they would rather reduce lending than accept capital they did not want from governments or shareholders.
Reuters reported German Finance Minister Wolfgang Schauble said a 5 point plan to be delivered to this weekend's meeting was not a "definitive solution."
The German downplaying of expectations followed a G20 Finance Minister's meeting in Paris over the weekend which spelt out clearly that Europe needed to find a solution this coming weekend that would be presented to a full G20 leaders meeting on November 3/4 in Cannes.
US stock markets had rallied more than 10% in the preceding 10 days on hopes Europe might find a way through.
Spreads between Portugese, Spanish and French bond yields rose to near record levels overnight on fear contagion may not be contained if Greece defaults. See more on markets overnight here at Bloomberg.
US stocks also fell after Wells Fargo reported a weak profit result and the New York Federal Reserve published its index of economic activity showing weaker than expected activity.
Elswhere, the Occupy Wall Street protests continued to spread overnight, with Police blocking access routes to the London Stock Exchange (LSE) and Italian police raiding protesters premises looking for weapons, Bloomberg reported.
The New Zealand dollar fell back to 79.3 USc from over 80 USc yesterday as commodity prices fell in line with expectations of global growth.
No chart with that title exists.
54 Comments
">I’m not sure history is being so much made at the moment as changed. Imagine Orwell’s Ministry of Truth gone digital, and you’d be about there: ‘Airbrushing history LIVE as it happens’.
OK I am confused. I was looking at the National party billboards that are up around my neighbourhood, and I see "More exports, more real jobs". Really? WTF! How?
Now perhaps someone from the National party could kindly explain to me exactly what the National government intends to export more of (as I wasn't aware our government was in the exporting business. I presume more people to Australia??), and please explain what the hell are "real jobs"?
You weren't expecting any of the parties to campaign on 'belt tightening and service cutting until the country can balance it's books', were you? Best they let us continue to slide into the pit and then stand back and blame it on any of; it was the previous government, due to external factors outside our control, the weather, etc.
"Property values sliding", says (Macqauie Bank, ex-Director) Bill Moss,
"The balance between spending on shelter, food, energy, and health is changing. This will affect all forms of real estate. How we own it, finance it and rent it."
"Debt is necessary to inflate asset values; take it away and asset values fall," Mr Moss said. "Imagine a world with no debt and there would be less development, smaller buildings, cheaper finishes and fewer home owners. You will also see fewer property developers and fund managers driving around in Ferraris. Without debt, most real estate would be cheaper," he noted. "Most of our wealth has not come from wages less living expenses, but from asset inflation."
Note his observation
In a wide-ranging address Mr Moss touched on the adverse impact the rise of online retail had on property, particularly on shopping centres and retail property values, as well as the effect of ageing populations on economies that would likely mean higher taxes.
It bemuses why there is so much expansion on large retail malls at present, such as the Base in Hamilton. I understand Malls charge upwards of $60k a year to shop owners - add these costs to the product, staff and the gst they must factor in and it's pretty clear they are going to get whipped by online retailers....
Before any solutions(stalling of the inevitable) can be hammered out ,the carving of the political EU pie will take precedent.... as the what's in this for me or where does that leave us effect takes hold .
I am sure the Franco/German sub plot along with the blessing of IMF is to promise a "New" New world Order within the E.U.
This in itself would I feel become a bridge too far, as outside interests begin a proactive campaign to meddle in affairs in an effort to.... keep multilateral doors open in U.N. sanction matters....keep Frankenstien on the table conscious but restrained.
None of the problems facing the E.U. can begin to be addressed financially speaking untill / if at all ..A unilateral political will is enforced upon the citizens of the E.U.
Indeed as the attempt to sell the concept of the New New World Order begins... the escalation of citizen unrest will become explosive...(perhaphs anticipated) ..excusing instances of marshall law to be enacted upon the citizens...thus moving the political agenda forward.
For what it is worth I think Italy will be the first to get on board fully....funny that...those three had a crack once before did they not...?
It is not a coincidence that the OWS/occupy everthing is occuring right at this time. The global brain of the internet is comming to a conscious descision that the system is corrupt and lowers their quality of life. The people united can never be defeated. It's about really understanding the system and what it means.
John Minto on tv this morning wasn't, IMO, able to articulate just what exactly Occupy Aotearoa was protesting about. I thought his comments pointed more to 'protest for protests sake'. If Occupy Aotearoa want to be taken seriously they need someone to front for them who can articulate their cause - or is it just protest for protests sake?
Potentially someone could articulate their cause, and it could still be scrambled by the MSM. This is phase one, people getting together and discovering what the root cause of the problems are. The one fact that every occupier has in common is that their are some serious problems with the way the system works. If youve got 30min here is a great clip.
Could not agree more CassO ...and that may be precisely why Minto was interviewed apart from a cult of personality thing......they may even go dig up Ken Douglas for comment in an effort to belittle and water down any genuine proposals for change.
As I said below ....you need have clear agendas to propose for change....you need to have an informed articulator to capture the imagination of the viewer......listener.
...one could include the Rena in all of this. A ship able to sail under a flag of convenience and one result seems to be the difficulty in extaracting reparation when they ditch it (for their own insurance purposes?) in our waters and shunting the bill onto NZ taxpayers..
If they won't pay up, perhps the Unions could refuse to load/unload any of their other vesells..
Oh i forgot..the ownership of their other vessels will be hidden in a web of companies meaning we will never know who owns what... I suspect this is the sort of c##p that the 99% are on about
An example of what I was saying in the post below below rastus....
Adherence to Global Constitutions by their intent for the well being and right to an existance at some level of decency of their citizens... rather than interpretation and reinterpretation untill those Constitutions are left meaningless save the agendas of Global Corporations.
If its John Minto it wont be logical or rational. Looks like the NZ verion of the world wide protest will be an attempted hijacking by the NZ loony left. Protestors (such as myself) who want to protest against the abuses of bankers etc and their representatives will just be abused/used by the left, dont think I'll turn up.....
regards
One of the major obstacles in the developed world Skudiv..is that being aware is not enough...the lack of engagement is reflected when the time poor people servicing debt leave it to others to become practive....or to engage in a new struggle.
It is an unfortunate reality that ..the destitute...the dissaffected...the disillusioned...disgusted all share the common thread of time to.....allowing the powerful forces controlling media to quote..Idle hands make the Devil's work....
Use of the internet to fight fire with fire in terms of propaganda is o k untill your tagged a conspiracy theorist.....more usefull idea sharing as to what it is you can ......do...while being time poor is a more desirable outcome.
Just as the Arab Spring there will be no change without engagement and that engagement must have clear agendas with clear resolutions for change or the vaccum is just filled by more of the same from the next in line.
Adherence to Global Constitutions by their intent for the well being and right to an existance at some level of decency of their citizens... rather than interpretation and reinterpretation untill those Constitutions are left meaningless save the agendas of Global Corporations.
Conspiracy theorist base their claims upon unprovable information easily discredited. However the maths behind the comming Global bankruptcies is certain, and unavoidable. People will want to blame, and will not be diverted by MSM bogeymen.
Here is the agenda. Frontier Justice is comming.
Interesting video, however from my point of view I disagree on the rational.....I think its far simpler, and straightforward, greed....by this I mean they dont remove say wheat to make ppl hungry, so as to exhert control they just buy and sell futures to drive up a profit in that instance, they dont care or have no interest in the by-products of their actions, they are removed from them. Its rational behaviour for a single person acting alone....its amoral sure....Its little different from the despots or robber barons in history, I think jail time will come to them or hangings.....
regards
Rational people acting rationaly, acting in their own self interest, yes I agree totally. Controlling the flow of money through inflation and deflation has robbed the people of everything they own. This is not done by speculating, but rather by central bank manipulation, and government policy. cue Rockerfeller "Give me control of a nations money, and I care not who governs the nation, whoever controlls a nations money, controlls the nation, and I control the money." As true today as the day it was spoken.
As a follow up to the great Bernardo's post yesterday about the end of growth and the necessity of plan B, here in Peter Thiel's missive - The End of the Future - it deals with many of the same themes etc.
http://www.nationalreview.com/articles/278758/end-future-peter-thiel
Excellent hatchet job on modern day economics and economists:
http://www.theglobeandmail.com/news/politics/economics-has-met-the-enem…
For anyone concerned that the Failed Finance Company crooks are going to get legal aid,
all I can tell you is that the Government is seeking to reduce expenditure in other less important areas....
from the Herald
"The Government has slashed the number of food grants to needy families by 20 per cent, driving record numbers to seek food parcels from charities instead.
Work and Income NZ data supplied to the Council of Christian Social Services shows that taxpayer-funded food grants almost doubled from 71,189 in the June quarter of 2008 to 133,153 in the same quarter last year as families reeled from the impact of the global financial crisis."
Well thats fair
"Auckland University will increase fees for domestic students by four percent next year" herald.
Nice to see the ivory tower salaries are being kept topped up....easy peasy when you know the student loan scam is running strongly...debts now at 11 billion and climbing...
I would argue that people go because they believe that it is an investment in their future. This philosophy has been around for generations. These people have made an informed choice based on the information they have been give at a young age. I have not heard a single MSM argument saying that going to university is a bad descision and you should consider it carefully. There is a mountain of evidence pointing to the benefits of a university degree. I started working at 16 because I haeted school, and was mocked, and belittled for that dumb descision, yet the NPV of that descision has turned out to be far greater then even the optomistic evidence to the contrary.
In the last few years I think there have been some good studies showing that in the USA at least the cost of a University education is now not paying for itself over a person's lifetime.....You are better to get a trade qualification.....and I think as the future unfolds and we have a simpler lifestyle that will be self-evident. We wont be able to specialise as much, so high flying degree's and PHD's will become rare as they should be.
"MSM"?
"NPV"? net present value?
In my era going out and getting a job at 16 as a tradesman paid well initially but by about 25~28 the improved wages of a Uni qualified worker bypassed that initial income advantage....I dont know how much longer it will be before a Uni degree will become a dis-advantage over one's life....within a decade....
Mocked at 16 for working? or for not going to Uni? I assume the latter.....but I also went out at 16/17 like you and worked. I did a trade in marine engineering, I couldnt face A levels or a Degree....I did my Degree in my late 20s part time while I worked, it was agood decision for me....I think to do it like that.
regards
I think the expected salary increase is something like 1.5% or less even than core inflation....so, uh no.
What is a runaway are the other costs....
Student loan scam, well I think there are a lot of students who feel taht getting a degree these days is about the only way to get a job at all....and yes I really wonder on the costs v benefits in the future....I think there will be a lot of upset 20 somethings within a few years...
regards
Meanwhile, in Gotham City, thinking of closing your ToBigToFail bank account? Think again.
As part of a global protest anonomous is asking people to withdraw their money on Nov 5th.
Interesting stuff here in a Genesis R&D Corp NZX release about May Wang being charged with bribery in Hong Kong.
Genesis Research Update re Discussions with UBNZ 12:29pm, 18 Oct 2011 | GENERAL
Auckland, New Zealand, 18 October 2011 - Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) notes that May Wang, who was the principal of UBNZ for much of the period during which discussions occurred about investing in Genesis, has been charged by the Hong Kong Independent Commission Against Corruption with giving bribes of HK$73 million, and also notes that a warrant has been issued for the arrest of Jack Chen on related charges.
In view of these developments Genesis does not intend to proceed with any further business dealings with UBNZ.
Genesis Chief Executive, Stephen Hall, said, “Genesis has been reviewing a number of opportunities for the development and marketing of NZ food and derivatives. At this stage none of these opportunities have any certainty of proceeding. Consistent with Stock Exchange Listing Rule requirements for continuous disclosure, details will be provided to shareholders if the proposals progress.
“Any significant acquisition or licensing transaction will be subject to NZSX, ASX and corporate regulatory requirements and is likely to require shareholder approval at a special meeting.”
About Genesis
Founded in 1994, Genesis is a New Zealand-based biotechnology company. It has established Solirna Biosciences Ltd which is focusing on developing a novel single stranded gene silencing technology using the RNAi mechanism. Genesis also holds an equity interest in Real Time Genomics Inc. and has royalty rights resulting from previous collaborations for various products that are being developed by other parties in the fields of agriculture, forage grass, forestry, etc. For further information see www.genesis.co.nz
Have to give Feeley and the SFO some creds here Gareth...the collaborative info with the ICAC was critical to the investigation.
It was decided the Honk Kong chinese investors would have been the target of the fraud and so the reason for charging her there rather than here.
A case was being constructed against her by Feeley n co.,...so I guess he saved us a few bucks there, as due process will be left to the ICAC.
More on it here - http://www.interest.co.nz/rural-news/56249/unsuccessful-crafar-farms-bi…
"Elswhere, the Occupy Wall Street protests continued to spread overnight, with Police blocking access routes to the London Stock Exchange (LSE) and Italian police raiding protesters premises looking for weapons"
Interesting, but I couldn't see this referred to in the article link. Anyone have links to this?
here you go MartinV..........http://www.dw-world.de/dw/article/0,,15465210,00.html.....
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