Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news Italian Prime Minister Silvio Berlusconi refused to resign overnight despite a rebellion from within his own government.
Berlusconi is grappling with the spread of the European debt crisis to Italy's bond market, where yields on 10 year Italian government bonds rose over 6.7%, which many view as unsustainable for Italy.
Italy has public debt of over 120% of GDP and even though it is running a primary budget surplus, borrowing costs of over 6% of GDP make such a debt unsustainable. The rise in the Italian bond yield spread over German bund yields to over 450 basis points is seen as crucial, given this was the threshold beyond which Greece, Portugal and Ireland were forced to accept bailouts.
The trouble for Europe is that Italy's 1.8 trillion euro debt is too big to bailout and any crisis in Italy brings the whole Euro zone into question.
Berlusconi's government faces a crucial vote on Wednesday morning New Zealand Time that could trigger a collapse in Berlusconi's rule and the calling of fresh elections.
Meanwhile, France announced a tough new austerity budget overnight aimed at keeping France's AAA credit rating. The changes including an increase in the retirement age and new taxes were described as the toughest measures adopted since World War Two.
Elsewhere, the gold price rose over US$1,787/oz.
The New Zealand dollar was flat.
No chart with that title exists.
14 Comments
"Labour in dire straits"...love the cartoon fri in the Herald..brilliant...
http://www.nzherald.co.nz/news-cartoons/news/article.cfm?c_id=500814&objectid=10763715
What choice do the voters have? A bunch of self serving "old boys" with no plan what so ever to get us out of our mess and whose main aim is to channel as much wealth as possible into the pockets of the top 0.5%. Or a bunch of dreamers who have some good ideas but who will completely stuff it up with crazy ideas like entrenching welfare dependancy. I wish it were possible for voters to select which bits of each parties policies that they wanted. I would give voters more credit than those who seek their votes. It is no wonder we are going backward and those with any sense are leaving.
Voters have plenty of choice just a lack of motivation to change. There are a few minor parties out there that offer good alternatives IMO.
Just look at the Greens as an example of a growing minor party. That proves to me that enough people get behind something change can happen. Not that I support the Greens, its just an example. Personally I'm voting Libertarianz.
But voting for the status quo, we'll only get the staus quo.
National have no need of any sycophantic babble Brushy....Labour are managing to expose themselves as frauds for all to see....what will todays' promise from Labour involve...?
Granted JK is overdoing the smile and wave but what else can he do when the farce in Europe is about to smash the NZ markets for commodities....are you really expecting National to start dishing out promises to splurge a faster route to perpetual misery....!
Bernard just stay calm – don’t get nervous – “things” go the way “things” have to go – anyway !
Friday 25th of November 2011 – “Black Swan”
I also had a haircut yesterday. So far the day is shaking up quite nicely.
http://www.youtube.com/watch?v=NGpPH7m8dOw
The Reserve Bank today released a consultation paper on the implementation of Basel III capital adequacy requirements in New Zealand (http://www.rbnz.govt.nz/finstab/banking/4572979.html).
The Basel III reforms, developed by the Basel Committee on Banking Supervision, aim to strengthen the regulation, supervision and risk management of the banking sector, in light of the global financial crisis.
Reserve Bank Deputy Governor Grant Spencer said: “Capital provides a buffer to reduce the risk of a bank becoming insolvent as a result of unexpected losses, for example arising from a severe economic downturn. Robust bank capital requirements are therefore a critical part of a sound and efficient financial system.”
What a shame the RBNZ didn't apply the above rules demanding ROBUST requirements right through the property bubble madness time that resulted in the stupendous mountain of debt that remains a festering thorn in the economy......WHY didn't they?
Because Wolly ...they were on board with the idea that we could go on selling houses to each other for an indeterminable period at ever spiraling upward prices while the Bankers got fat off the dreams of the wankers...........then they,.. exposing their lack of competence and foresight .....decided they better put some distance between themselves and their private counterparts....
it's an oversimplification I know, but about wraps it up...! save , John Boy still advertising lower interest rates for longer on every other billboard....now tell me just how can he guarantee that.
So much for the Tobin
"George Osborne has condemned plans for a European Union levy on financial transactions as a “big tax on pensioners” that will lead to 995,000 job losses and not cost bankers a penny.
"There is not a single banker in this world that is going to pay this tax. There are no banks that are going to pay this tax. The people who will pay this tax are pensioners,”
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