David Chaston details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that ... the NZ dollar continues its fall as the world shuns risk. The euro countries are bleeding from continuous daily damage. Overnight, European bond markets were rattled despite what traders described as sizeable purchases by the ECB, something the Germans have been fiercely resisting. Italian yields topped 7%, while investors demanded the highest premium to hold French bonds since the inception of the euro. And in a somewhat inflammatory remark, Luxembourg's prime minister and one-time president of the EU Jean-Claude Juncker said the German debt level is a cause for concern; Germany has higher debts than Spain but "no one wants to know about that" he said.
And the Bank of England Governor said the UK faces a 'markedly weaker' outlook for economic growth and persistent danger from Europe’s debt crisis. English policy makers are saying they may need to expand their stimulus further.
In the US, the news was a bit better. Inflation data out overnight was very mild, mainly because lower oil prices; although even accounting for that, inflation is cooling in America. And a key measure of industrial output advanced in October more than forecast. There was also more evidence that key retailers are seeing growth.
In Australia, bankers are fretting over the added costs being imposed by their regulators as Basel III reforms are implemented. They are suggesting that those costs will need to be passed on to borrowers.
While in New Zealand, all eyes are on the election and there is little economic data being released this week. However, home loan approvals are holding at low-but-stable levels, with no sign of any 'spring bounce'. What this data does show is that banks seem to be favouring wealthier borrowers as the average loan amounts approved has jumped more than 15% in the last six months compared with the same period a year ago, even while the number of loans being approved is pretty much unchanged.
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32 Comments
WTI at $102USD.....
ouch....
Tank fill time...
oh and look we are going into a recession.....good old supply and demand curve at work it seems....
regards
Blenheims new 6 million dollar carpark is running about 20% full on average...that's revenue of about $174000 a year...against costs on say 5% on $6m being $300000 pa....deficit of $126000pa plus any running costs like staff, power and cleaning...ooops hang on....most of the vehicles in the $6,000,000 carpark belong to the Council....oh dear....who ran the numbers on the development...who pushed to have it built...why!
Hey no worries....just raise all the fees and charges on everything possible and then some...make up some new red tape..how about a fence fee....so much a post!...still need more....hit the rates button....screw the residents....make em pay....
Great so parking will be easy for us......is the new pool finished?
All off grape rates...once that industry implodes bye bye income.....
regards
How is the wine industry going? With weakness in the major wine drinking countries its hard to see how so many boutique wineries can keep going. Interesting here in aus i see lots of Marlborough sauvignons in the shops that i've never seen before, el cheapo ones with rather tacky maori imagery. Many people here seem to perceive nz wines as goodish but cheap. Bit different from the standard line that nz produces boutique wines. The perception here seems to be echoing the perception that has developed in the UK where nz wines are now bargain basement. Bit of an issue
I go over once a year to Marlborough or so, for the last 3 or 4 the wine industry has been looking bleaker every year......so ask me in Feb/March after Ive had a catch up with ppl.
In the UK NZ wines are cheaper than here so Im not so sure on "Boutique" but they are good wines especially for the money.....however there is stiff competition from OZ for instance.....and more honesty in labeling.
From what I can see IMHO there are a lot of small vineyards with BB woners "dabbling" in wine and trying to charge boutique prices for wines that dont deserve it.....I could name some that I wouldnt use as a petrol subsitute....
;]
These will go by the wall I expect.....when the do I wonder where the hosue prices will go over there.....
Certainly beautiful part of the world, i can see the appeal of the lifestyle
Some wineries must be doing ok out of aus, wit the weakness of the nz dollar relative to aus
This sort of thing is becomming all too familiar. How does the community get a handle on these leaches. Do we have to go to the American system of electing principal city officials? It seemed to get a lot worse after Vicky Buck went round amalagmating smaller councils. My old man was a councillor. In those days it was common for a councillor to personally involve themselves in the day to day running of the council and so had a very good handle on what was going on. These days it appears that they are kept very much at arms length by an army of bureaucrats and consultants (sucking at our rates). As such our representatives appear more vulnerable to be manipulated by the information flows which these people provide. (Do they have agendas?)
Blame labour and the Greens and the local government Act 2002, b is a licence to do anything
Purpose of Local GovernmentThis is defined in the Local Government Act 2002 section 10 as being -
(a) to enable democratic decision-making and action by, and on behalf of, communities; and
(b) to promote the social, economic, environmental, and cultural well-being of communities, in the present and in the future.
Neven
"When in doubt read the source code"
Fat chance of National chopping that out Neven11....it's a pork pie time for both parties...labour play it to make work for their rump ......and the other lot to make profits for their rump.....only answer is to always vote out them that are in...to stay mobile...an incentive to rent....
Bring back beautiful New Zealand !
STOP NZmegalomania - crimes committed by authorities before it is too late and we spiral down from more debt into bankruptcy.
Now a good Council...one that was concerned about keeping rates low and in providing the basic community services like water and sewage treatment, footpaths and roads etc would have left it to a private developer to pay for and run the carpark...all the Council needed to do was make the land available and remove the red tape...but no not Marlborough....heaps of rates revenue in Marlborough....higher average incomes than any other region...NOT.
Well houses are very expensive around there.....similar or more than Wgtn....enjoy......
regards
...it aint limited to Malborough...the biggest disaster around must be Hamilton..not only car parks, but event centres, velodrome's, stadiums, central city developments all over budget....oh and the v8's of course....bunch of muppets been runnng the place for years
Should double the rates burden for all in Hamilton rastus....kind of supports my argument that it's best to stick to the big old bus...roll out and away at midnight...avoid the road tax coppers...known as the small hours flit....
Monuments to ego rastus. To me most cities have been too eager to replace perfectly functional, albeit a bit dated, facilities with unaffordable shiny new things. It's just a big gravy train. I mean a carpark building in blenheim?
Somewhere to park all the Council vehicles Matt.....what else would it be for!
David's last point is quite interesting. It supports the notion that median house prices are only holding up because the sales mix is different ie a bigger proportion of house sales are higher value than normal. This skews both mean and median prices higher
yes....classic devil is in the detail stuff.
regards
I recall some have been making the assessments along those lines for some time now. Data now backs up those claims.
Assets can become liabilities.
I.e. Wife working = Asset
Wife not working = Liability
[Toungue firmly in cheek; as applies to me as well]
Lucky you John...Amanda could have been in charge! What the hell is a toungue!
ABC Going Rogue - traders (magazine type article). Transcript too.
And the irony, KW John, is that even Australia has had it's share of rogue traders. Back in 1983-4, Andy Koval brought AWA, a long established industrial business, down. Throw in Jerome Kerviel at SocGen ( the reason they are at death's door today ?)...and all we are doing is...waiting for the next one to be dicovered ( many 'got away' with it!)
I've been strangely ambivalent about these 'types of people' ever since I watched the Enron documentary. Initially I thought they were the problem. Now I just think it's the sandpit they were asked to play in... allow broken bottles in the sandpit, and someone eventually gets one in the face. Sugarman seemed to be properly motivated though, his sign-off carried the threat of five years in prison....
Great link - makes me shudder (old time analyst/coder). 'The Basic Problem'. Ye Gods I hate 'spreadsheet systems'.....
This can't be right, the US debt clock says that the US taxpayer owes over a million EACH!
Gonna take a while to pay it back.
Oops, that's the unfunded liabilities per taxpayer. Only 133k per tapayer share of national debt.
Decline and fall..
I cant find any ppl who seriously think this will end "not to badly" most now think its going to be very very bad.....
http://krugman.blogs.nytimes.com/2011/11/16/decline-and-fall/
regards
BOE seems to get core v CPI inflation argument....
but its probably now over-shadowed by Italy dying....
http://www.bankofengland.co.uk/publications/inflationreport/ir11nov.pdf
"......... it offers a defense of the Bank’s decision to pursue expansion, not contraction, despite 5.2% headline inflation. It’s basically a core inflation argument. The Bank says that a lot of recent inflation reflects temporary shocks........8><...........They are under terrific pressure to panic over inflation, much as the ECB did when it raised rates earlier this year — a disastrous decision that is one of the reasons Europe is falling apart right now."
http://krugman.blogs.nytimes.com/2011/11/16/the-very-brave-boe/
So Bollard it seems has steel balls as well, good for him.....and us.....the blind panic by the likes of Wolly over tomato prices a couple of months back is shown to be the mistaken mantra it is.
This'll make you puke..
"Members of Parliament have been given a $7,000 salary rise by the independent body who set their pay.
The Remuneration Authority this morning gave MPs an increase of 1.5 percent, as well as a $5,000 payment to compensate for the international which was scrapped in January.
The changes will see the next Prime Minister's salary rise from $400,500 to $411,510, while his deputy will get $291,800, up from $282,500.
The Leader of the Opposition and the Speaker will both get $257,200, up from $249,100.
Backbenchers will receive $141,800, up from $134,800.
Authority chairman John Errington said increases in recent years have not kept up with the rising cost of living and general wage increases"...herald
Parliament will increase the salaries of the 'staff' at the Remumeration Authortiy asap.
Public sector average hourly earnings $ 32.61 private sector $ 23.72
Compare typical annual salaries in New Zealand
http://www.emigratenz.org/Work.html
Bring back beautiful, pure, and affordable
New Zealand !
STOP economic and financial NZmegalomania - crimes committed by authorities before it is too late and we spiral down from more debt into bankruptcy
Looking into current developments on many fronts – the world will never recover again, simply because among the powerful in societies ethic and moral requirements and standards don’t prevail
Re Comments about rogue traders
I was highly involved in SIMEX ( along with CME and the CBOT) eurodollar/bond trading around the time Leeson committed his so-called atrocities.
It became apparent to all, including the Japanese brokers that brought him down, it was Peter Baring (Chairman) who kept writing the margin call cheques which lead to the collapse of Barings Bank. Leeson could have been stopped at any time by cutting of the clearing house liquidity.
Traders become rogue once the management realise that doubling down was a failed strategy.
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