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90 seconds at 9 am with BNZ: ECB dashes hopes it will solve Euro crisis by printing money to buy European bonds; Euro banks told to raise 115 bln euros; Stocks, NZ$ slide on ECB disappointment

90 seconds at 9 am with BNZ: ECB dashes hopes it will solve Euro crisis by printing money to buy European bonds; Euro banks told to raise 115 bln euros; Stocks, NZ$ slide on ECB disappointment

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news European Central Bank (ECB) President Mario Draghi has dashed hopes the central bank would print money and massively buy European government bonds to solve the European debt crisis.

Draghi's rejection of this 'big bazooka' idea surprised and disappointed markets, who had thought Draghi hinted last week he might intervene massively if Europe's governments improved their budget coordination.

Markets had initially welcomed the ECB's decision to cut its official cash rate by 0.25% to a record low 1% and to loosen collateral rules for banks to borrow from the ECB for periods of up to 3 years.

See more here at Reuters.

European stocks fell 2.5% and US stocks were down 1.4% in late trade. See more here at Bloomberg.

The New Zealand dollar fell to 77.2 USc immediately after Draghi's comments from as high as 78.8 USc beforehand.

Investors typically sell 'riskier' currencies such as the New Zealand dollar whenever they get nervous about financial market conditions and the global economic outlook, given the New Zealand dollar is seen as exposed to more volatile commodity prices.

The disappointment over the ECB's stance came at a crucial time on the eve of a crisis summit in Brussels where Germany and France are hoping to push through an agreement to change the European Union treaty with tougher rules for budget coordination.

Europe is desperately trying to create a single budget policy to match its single monetary policy. French President Nicholas Sarkozy warned of an explosion in the Euro zone unless a solution can be found at this summit. See more here at CNN.

Meanwhile, the European Banking Authority (EBA) has told Europan banks they need to raise 115 billion euros in fresh capital to strengthen their balance sheets to cope with the increasingly toxicity of their European bond holdings. See more here at Bloomberg.

The Bank of England held its interest rate as expected at a record low 0.5% and pledged to continue with its own money printing. See more here at BBC.

Elsewhere, in the world of Insurance, NZ Herald reported Warren Buffett's Berkshire may be a bidder for AMI Insurance. The Age reported a rumour that Wesfarmers, which owns Lumley Insurance, may launch a takeover bid for IAG, which owns State and NZI here.

See more here at Bloomberg

(Updated with more detail, links)

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30 Comments

Please don't fret about Europes problems.

DAN CARTER  IS GETTING MARRIED.

i'm so giddy

This is supposed to be good news? 

"DAN CARTER IS GETTING MARRIED."

The people of Connecticut must be overjoyed!

Welcome to the dark side DAN....

His once-quiet life in the Senate will never be the same again.

Warren Buffet loves insurance, the best part is the govt guarantee.  I hope he insured his 2018 golbal index's put options.  Looks like they may expire OTM.  Saying that markets are terrible at pricing risk, and anything is possible with Bernanke determined to float the Dow on hot air.  It's also distorted by the main players who legally must have a certain portion of the portfolio in stocks, and govt bonds.  Stocks have lost the free market ability to forcast the future in any meaningful way, bad news is good for stocks because it means QE is comming, good news is not so good because it means no QE.

“Lenin was certainly right.There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose… the governments of Europe… are fast rendering impossible a continuance of the social and economic order of the 19th century.” – John Maynard Keynes (p. 235) 

accept in Zimbabwe... proves there's always an exception to the rule, like property in NZ, especially Auckland...

Anyone laying odds that Brendan McCullum will attempt to top Virender Sehwag's 219 off 149 balls ...... in today's test match at the Bellrive Oval , Hobart ?

.... we must have the stupidist cricket 11 on the planet .... not the least talented , just the dumberest ......

TAB are offering $ 8 to win , for the Black Hacks .....

With the way they played last game I'd sooner flush my cash down the toilet then take that punt!

At 11 for 2 , the question is , can they top a team total of 26 ? ...... ow-zat !

GBH your basic problem with the top order especially McCullum is a complete lack of humility.

 In order to ...do... better one has to.... be... better. In order to ..be ....better  one has to accept they are, not.... yet.... as good as they would have us think they are.

 The power that comes from genuine humility  is the means to turn such form around. 

agreed, though fake humility is worse than the display of no humility...

.... but if you're humble enough to admit that you can't fake humility with any conviction , can't you then fake humility with the humility of a contrite spirit , until you can learn to fake humility convincingly , in which case , ipso facto , it must have become true humility  ? .......

The Giveaway GBH in fake humility is the lack of improvement particularly in the area of resolve and patience.

A case in example is Vetorri...he may go to a good ball or a dodgy call but you can see the quiet resolve in the man to do better.

 So no, I think the inablity to connect with humility always shows in the short term.

Kwai Chang Caine was acting.....humble ...really badly...!

That's strange...Blenheims full of All Blacks...at least one on every street.....

What's an "All Black"?

83 for 6 at lunch in Hobart  ! ....... hmmm , I wonder if we can do a conversion job , and turn some of these All Blacks into cricketers ?

Jeff  Wilson was a good example......sod the sooky thigh problem Martin...pick up your bat n get out there you old dog....because those pups are getting their tail smacked as well.....oh dear me..! I can't look ....no!..... mercy please.

Right new title for the Black Caps.........The Sad sacks..?....The  Buttheads....The Easybeats...

Got It.....!

 The Black Cap..itulators.

105 / 7 ! ....... the Black Cap-itulators it is ..... in all honesty though , whenever I see the flannelled fools who represent us , I get this mental picture of " Monty Python " .....

..... no expectation of them either , to anything other than make us laugh .....

105...hey that's a top Rugby team we have there....it's the Sevens right?

Has Blenheim got more than one street?

Two if you're drunk muzza...

Once in a while somebody is able to explain the farce we call economics so well...that you just have to make a copy and nail it to a govt polly's head...

 http://www.marketoracle.co.uk/Article31994.html

I wonder whether Tolley is reading this!

 http://www.dailymail.co.uk/news/article-2071902/Extraordinary-admission-examiners-tip-teachers-200-coaching-sessions.html

 

The word in the UK is that every person who achieved a university degree after 1999 will have to resit their exams.....seems the examiners have been cheating....now what quals does the PM over there claim to have!!! http://www.telegraph.co.uk/education/secondaryeducation/8943765/Exam-boards-investigation-Theres-so-little-content-we-dont-know-how-we-got-it-through.html

FYI It's all on ... or off..

http://www.reuters.com/article/2011/12/09/us-eu-summit-agreement-idUSTRE...

The European Union failed to secure backing from all 27 countries to change the EU treaty at a summit Friday, meaning any deal will now likely involve the 17 euro zone countries plus any others that want to join, three EU diplomats said.

Do you think they might pay for some experteeze Bernard...I'm free!

uh huh N.Z.'s contribution is 1.5billion and a Wally.

Did you not read the itenery for the summit Wolly...? it clearly said ..No Gypsies !

I bloody told ya  Big B......it's not our fault ...but wer'e going ...! if your coming with us take a  one step forward...uh not so fast there pigs...wer'e uh  a little light on entry tickets here.

150 all out..,.!never mind it'sall about participating...and at worst wer'e  still coming second...oh dear oh dear....the cradle to the grave.

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Days to the General Election: 37
See Party Policies here. Party Lists here.