90 seconds at 9 am with BNZ

90 seconds at 9 am with BNZ: Berlusconi tells President he will quit; Italian borrowing costs surge; Greece still without PM; NZ$ solid

9th Nov 11, 9:02am 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 that Italian Prime Minister Silvio Berlusconi has told President Georgio Napolitano he would resign after Italy's budget was passed.

See more here at Reuters.

This followed a humiliating near defeat for Berlusconi in a parliamentary vote where his government only won a budget vote because of abstentions.

Market reaction was relatively muted, given Berlusconi's likely resignation does little to solve Italy's budgetary problems and the threat to Europe's financial and banking stability.

Italian bond yields rose to an unsustainable 6.75%, given Italy has debt worth 120% of GDP, which means its borrowing costs are expected to rise over 5% of GDP.

Meanwhile, Greece remains in the headlines despite the resignation of its Prime Minister George Papandreou.

Reuters reports it is struggling to find a new Prime Minister that can form a government to enforce the austerity measures demanded by Germany and France.

The Dow closed up 0.7%.

The New Zealand dollar was steady around 79.8 USc.

See BNZ's currencies report on our site here.

(Updated with details, links, Dow close)

No chart with that title exists.

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30 Comments

by Wolly | 9th Nov 11, 9:08am 1320782919

Now should I buy Italian govt bonds or shares in Tepco....it's so hard to decide which is safer..!

by Andrewj | 9th Nov 11, 9:11am 1320783106

It's time we face the reality that Europe and the U.S. are full-blown financial alcoholics, addicted to illusion and debt. And what do they turn to as "solutions"? The very sources of their pain: illusory "fixes" and more debt.

Next In Line for Implosion: Pension Plans

by scarfie | 9th Nov 11, 9:15am 1320783308

"In short, the European project is failing at precisely the point that it had been attempting to solve — nationalism. The ability of leaders to make deals depends on authority that is slipping away."

by Wolly | 9th Nov 11, 9:23am 1320783821

Have a look at the poll result.....easy to discover why Labour is almost below the 25% support level.....funny as ...... http://www.nzherald.co.nz/politics/news/article.cfm?c_id=280&objectid=10764722

No leadership any which way you look at it.....

by amalgam | 9th Nov 11, 9:47am 1320785236

Can't be any worse than National.

by Wolly | 9th Nov 11, 9:30am 1320784218

"The US government has formally denied that it has any knowledge of contact with extraterrestrial life." bbc

Well....that clears that matter up....when can we expect the first visit then?

by amalgam | 9th Nov 11, 9:45am 1320785143

You have to wonder how anyone can continue to believe that ETs are visiting the Earth.

All they have to do is read even the most basic of astronomy books to see that it's so unlikely as to be essentially impossible.

They're all a bunch of Mulder wannabes who "Want to Believe" in the unbelievable.

They probably still think property is a good investment.

by Wolly | 9th Nov 11, 10:13am 1320786839

You mean "they" are Keynesians!....

by Christov | 9th Nov 11, 12:56pm 1320796562

I used to have a thing for Scully....yum...slurp!.....I dont know what the show was about really ....just used to watch her lips move.....hmmmm those were the days uh....still...erhumph..!

by Wolly | 9th Nov 11, 10:18am 1320787134

What does this tale tell you about Westpac as a bank?

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10764770

by Vanderlei Luxemburgo | 9th Nov 11, 12:17pm 1320794261

Wol I seem to remember someone on this site pointing out that most of the new blood who flooded, inflated, then exploded SouthCantyFinance were ex-westpac......does that ring a bell?

by dosser | 9th Nov 11, 11:35am 1320791701

Was that Big Daddy being interviewed on the streets of Epsom on Campbell Live last night? Or his identical twin?

by scarfie | 9th Nov 11, 12:33pm 1320795208

You mean his evil twin......oh no wait, he is the evil one.

by Gummy Bear Hero | 9th Nov 11, 12:34pm 1320795240

It is official , Italian P.M. Silvio Berlusconi has agreed to step down .....

..... in response to this , the ASX share index has stepped up 1 % . .. . As they say in Australia , .....

.. " and another dagoes ' bye ' " .

by Wolly | 9th Nov 11, 12:49pm 1320796167

Nah Gummy you didn't read the small print.....agreeing to step down is Italian for taking off ones platforms.

by Christov | 9th Nov 11, 12:49pm 1320796170

But it only takes 24hrs to make another GBH......... so what can Italy expect now another former IMF or EU Banker to suddenly step into the breech.....!

There's stacking the deck and then there's this in your face crap that's going down in the E.U........a very ,....we will prevail at all cost to the taxpeyer by the Banking fraternity.

Not that I don't thik Bigasconee should not be gone......but that the people will have little to decide in Italy's future........

99.

by Vanderlei Luxemburgo | 9th Nov 11, 12:52pm 1320796323

Maybe I'm just having a bad day, but i reckon f**kit, lets default with iceland, greece, the italians and get the ball rolling... I know it'll cause pain, but aren't we already in pain?

This banking system is rooted to its core, and the pollies who are propping it up are uniformly revolting. Maybe it IS time to pull off the bandaid, have some painful years and start rebuilding.

I know none of the pollies would actually do this, but on the upside their incompetence is so vast that it might just happen by itself....

by scarfie | 9th Nov 11, 1:14pm 1320797651

http://www.referendum.org.nz/votingsystems

But they missed out FRO as an option, which I thought might suit you better Vanderlei.

by Vanderlei Luxemburgo | 9th Nov 11, 1:33pm 1320798818

well scarfie i've always been of the opinion that "none of the above" should be a counted vote on any ballot. if it wins, the pollies can either FRO as you say, or come back with something better

suits me fine. this mob we currently have give me no confidence whatsoever. and as wol says we've had one shit govt after the other for decades now. why not wipe it clean?

by Christov | 9th Nov 11, 1:37pm 1320799062

yay ..! all for it V.L......or we could print some novelty currency with a picture of John Boy on one side doing the idiot wave

...and a superdove on the other with Bollards Head add the sub caption ... Nihil Facimus Sed Tam ...

worst case scenario ,...they know were crazy..!

by scarfie | 9th Nov 11, 12:55pm 1320796503

Interesting, the Mayor of Dunedin trying to abuse trespass laws but has found the Police won't dance to his tune. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10764789

by Wolly | 9th Nov 11, 1:16pm 1320797800

That was really good news earlier this week....a UK judge banging up a family of building scam swine for 20 years....fabulous.

by hamrod | 9th Nov 11, 2:05pm 1320800714

TV 1 seems fairly fixated on NZ'ers leaving for Aussie lately... Goff on there the other night blathering about closing the income gap and having more and better jobs in NZ etc... yeah yeah heard it all before, didnt happen then, not going to happen any time soon.

Interestingly they interviewed four 30+ women now working over there making far more money, better lifestyle etc. From something one of them said I interpreted her as being single before she left NZ, and I wouldn't be surprised if the others were as well.

This is the main issue, 95% of single NZers can't afford to buy a house near where they live and work. If they cant afford a house here they cant knuckle down and start a life here. If they cant start a life here why not move to aussie, get paid way more and have a better lifestyle, chances are they wont be able to afford a house over there but they're still better off.

Both National and Labour will continue to fail abysmally at keeping NZ'ers in this country because they are both far too afraid to address the real issue. A big fat elephant in the room in the form of a massively overvalued property market, kept in place with a low OCR provided by a complicit RB and council zoning regulations that are far too restrictive. Young NZ'ers cant even get a foot in the door here, is anyone surprised they're leaving in droves?

National and Labour will continue to protect the highly indebted voting public while paying nothing more than lip service to the idea of keeping NZ'ers here as the only thing that will keep them here is in direct conflict with their primary agenda.

Will NZ ever get a government with the balls to return interest rates to a sensible level, free up the zoning rules and instigate some creative destruction that might result in a rebalancing of the economy and a return to sensible house price levels? No of course not, anyone that would be inclined to vote for that kind of government has already left.

by Vanderlei Luxemburgo | 9th Nov 11, 2:23pm 1320801814

kind of like what we're talking about above Hamrod.....the pollies and bankers are to gutless to do whats needed, but they appear to be creating a mess that will implode by itself - shit maybe the market works after all...?

by hamrod | 9th Nov 11, 2:42pm 1320802935

Yep, was going to put a comment re yours: "but on the upside their incompetence is so vast that it might just happen by itself" thats pretty much how I see it playing out. This country will never get a leader with the balls to put through a tough decision because it will never vote for one. Self interested voters and politicians alike will continute to dig their own grave until they realise they've burried themselves in it. Just like whats happened in the US and Europe. Only a matter of time there and by association for us as well.

by amalgam | 9th Nov 11, 3:15pm 1320804903

Our "leaders" will continue to focus on nothing but their own personal enrichment at the expense of their fellow citizens.

They assume there will always be some luxurious tax haven or other to which they're planning to retire.

by amalgam | 9th Nov 11, 7:32pm 1320820348

National's fanclub never failed to shriek about the Aussie exodus when under Clark's reign.

Yet, now that it's actually increased under Key, National's fanclub don't wish to discuss it any more.

by Matt in Auck | 9th Nov 11, 8:32pm 1320823963

Exactly!

So what's Key's excuse for the massive exodus that has been underway in the past year?

no doubt external factors out of his control

by Matt in Auck | 9th Nov 11, 8:30pm 1320823825

Hamrod

So well put!!!!

NZ will slowly go down the gurgler because none of the politicians, left or right, will do what is required to transform the country. They will do a bit of tinkering, to look like they are doing something, but that tinkering will be largely meaningless

And its not rocket science!!!!!!!!!!!!

by Kakapo | 9th Nov 11, 9:29pm 1320827364

Inevitable now that PR and marketing have completely taken over, and our 'leaders' are nothing but highly-trained media show ponies. They're like reality tv show hosts, except not as good looking.