Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news dribbling out from continual crisis summits in Europe aimed at finding a solution to the its sovereign debt crisis.
European stocks and US stocks firmed overnight on some hope a package might emerge by the final European summit on Wednesday. See more here at Bloomberg.
European leaders have agreed on the need for 100 billion euros of recapitalisation of stressed European banks and the need for a beefed-up European Financial Stability Fund (EFSF) to stop contagion spreading from Greece to the other indebted southern European countries.
However, there has yet to be a deal found on how much of a haircut European banks will have to take on their Greek debt and exactly how the fund would be beefed up.
One idea being suggested is that the existing fund be used to insure losses on bonds and that a special purpose investment vehicle be created to buy distressed southern European debt. See more here at Reuters.
Meanwhile, US stocks also firmed after positive results from construction and mining equipment maker Caterpillar, which is seen as something of a bellwether of global economic growth. Its shares rose 5%. See more here at Bloomberg.
The HSBC/Markitt flash PMI (Purchasing Managers Index) for Chinese factories also showed the first rise in 4 months. See more here at Reuters.
That helped boost demand for commodities, which rose more than 2% overnight. See more here at Reuters.
The New Zealand dollar strengthened to 81 USc this morning on hopes for global recovery and higher commodity prices. See more here in BNZ's currencies report here on our site.
Meanwhile, local markets will be focused on September quarter inflation figures due at 10.45 am, which are expected to show the Consumer Price Index rose 0.8% in the September quarter and is up 5.0% from a year ago.
The Reserve Bank is expected to keep the Official Cash Rate on hold until early next year.
(Updated with links, details)
No chart with that title exists.
11 Comments
Bernard,.... In your charts section ... do u have any to do with "Govt"...... ie. satistics to do with Govt balance sheet and Financial statements.
I think it would be useful to be able to see all this information in chart form...
ALSO... are u able to get to the level of the ST Louis Fed FRED charting functuality...
I would like that... :)
Cheers Roelof
Here are some of my definitions of financial jargon used regarding the EU crisis.
Recapitalisation: The act of taking money from taxpayers, and giving it to banks, so they can pretend they aren't insolvent.
Beef-up: Use taxpayer money as a deposit on a much larger loan to aid in recapitalisation.
Stressed: Very worried about being insolvent, but hiding the fact, by using fantasy values for bad loans.
EFSF: A taxpayer donation, can be used to recapitalise the banks, can also be beefed up.
Haircut: Another word for default, ie failure to pay your debts, when they are due.
Final European Summit: Where European leaders go at least once a month, to discuss, haircuts, beefing up, recapitalisation, and stress.
Hope: (I'll leave this to wikipedia) Hope is the emotional state which promotes the belief in a positive outcome related to events and circumstances in one's life.[1] It is the "feeling that what is wanted can be had or that events will turn out for the best" or the act of "look[ing] forward to with desire and reasonable confidence" or "feel[ing] that something desired may happen". [2] Other definitions are "to cherish a desire with anticipation"; "to desire with expectation of obtainment"; or "to expect with confidence".[ ......."...comes into play when our circumstances are dire", when "things are not going well or at least there’s considerable uncertainty about how things will turn out"...."false hope" refers to a hope based entirely around a fantasy or an extremely unlikely outcome.
Still a rumour...
Oil is staying up in price so it seems ppl still think there is an option on the resession or not...
http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/884426…
Still in the high 80s....
regards
Oh well, back to the boring old argy bargey of the World/European/NZ economy with all the opinionated same, same old. The RWC was good while it lasted, and all power to Stephen Donald, OBE, MBE, a second MBE, Poet Laurete designate,and Nobel Prize for Kicking. However, it is taking it a bit far to compare God with Stephen Donald, I mean he's good but he ain't Stephen Donald.
Here are the food prices form North California
FOODMAX
Milk Organic $3.03 for 1.98Liters
Milk normal $2 for 1.89Liters Eggs $1.60 for dozen Bread $2.48 Cheese $6 for 1.50lbs Bacon $3.78 (16oz) Beef Petite Sirloin $7.69 for 2.21 lb net weight Beef Tri Tip $11.83 for 2.64 lb Toothpaste Colgate $1.48 for tube (6.4oz) Whole Frozen Chicken $8.38 for 6.03 Net Weight LBS ($1.30 per LB) Whole Hot Chicken $5.99 Ice-cream $2.85 for 1.65 Liters Orange Fruit Juice $2.98 for 1.75 Liters Heineken & Corona $7.48 for 6 (12oz bottles) FRUIT & VEGE Oranges $1.28 lb Pears $1 lb Grapes $1.78 lb Apples $1.28 lb Bananas 52c lb Avocado 80c normal size each Celery 48c normal bunch Spinach 78c normal bunch (the small bundled type you buy for breakfast) Carrots $1.98 lb Potatoes $ 1.98 lb
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