Bernard Hickey details the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including news that financial markets are beginning to worry again about the US deficit situation.
A 'Super-committee' of Congress is due to come up with a package of US$1.2 trillion worth of cuts by the end of Wednesday, but the signs over the weekend were that Republicans and Democrats on the committee could not agree to a plan.
The Super-committee was formed back in August when the American government failed to raise its debt ceiling, causing Standard and Poor's to downgrade America's credit rating to AA+ from AAA.
If a plan cannot be agreed, US$1.2 trillion worth of cuts (about 8% of GDP) automatically kick in across-the-board from 2013, which could drive the US economy back into recession. Military spending would be hardest hit. There are also concerns that America's credit rating may come under further pressure. See more here at Reuters.
Meanwhile the European crisis is rolling on with Greek politicians in Brussels to argue for the next tranche of their bailout, although not all of them are willing to sign up to pledges to carry out austerity measures. See more here at Reuters.
Spanish voters are also expected to turf out their existing left-leaning government for a centre-right opposition as public discontent grows over the Euro crisis and chronically high youth unemployment. See more here at Reuters.
There remain concerns in Europe about very high government bond yields in Spain and Italy, and the potential for fears about stability of the European financial system spreading to money market funds in America. See more here at Reuters.
The New Zealand dollar was weak around 75.6 USc this morning as fears about European contagion drag on expectations for the global economy, commodity prices and 'riskier' currencies such as the New Zealand and Australian dollars. See more here in BNZ's currencies report on our site.
Meanwhile, New Zealand faces its own general election this weekend. See all our news coverage here.
See our political reporter Alex Tarrant's live blog here.
See our Election 2011 policy comparisons pages here.
(Updated with links to election coverage)
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7 Comments
Not looking good...
"Reuters reported that the Republican and Democrat heads of the 12-member committee will issue a statement later on Monday saying they have been unable to reach a deal."
What I like about this story isthat there is no mention at all that Christchurch Airport used to own the Antarctic Centre, sold it to the management in a deal that was not open to the market and then buys it back years later from the same management. All behind clsed doors.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=107…
Christchurch Airport buys Antarctic CentreChristchurch International Airport has bought the International Antarctic Centre from its private owner for an undisclosed sum.
Airport bosses today spoke of their "delight" at adding the neighbouring visitor attraction, which has twice been judged `Best New Zealand Visitor Attraction', to their expanding portfolio.
CIAL chief executive Jim Boult said: "There is obvious synergy here - Christchurch Airport is the tourism gateway and the International Antarctic Centre is a cornerstone of the tourism industry.
Meanwhile back in 2000-
MANAGEMENT BUYOUT PROPOSED FOR CHRISTCHURCH INTERNATIONAL ANTARCTIC CENTRE. This weekend it was announced that a group of management involved in the day to day running of the popular International Antarctic Centre are proposing a management buy-out. The centre is located alongside Christchurch International Airport. Both it and the Airport are owned by the Christchurch International Airport Company which is largely (75%) owned by the Christchurch City Councilwhich operates it as a council owned commerical enterprise.My recollection is that Christchurch International Airport sold the Antarctic Centre to Richard Benton back in around 2001. As far as I can recall The deal was to done behind closed doors. No other potential buyers were canvased, no open tender process (would like to be corrected on this if wrong) Now the same Richard Benton gets to sell it back to the very same airport company once again behind closed doors. Now Richard Benton can do whatever he likes but the Airport company is owned by the public and maybe they should be a bit more careful.
if plan b is correct re chch international airport then the sale & buy back reek of corruption & should be looked into; & the nz herald reporting should b exposed as shoddy as it does not mention the prior sale by c i a - thus how does one check plan b's claim & where does one forward such complaints
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