Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news investors are having second thoughts about the deal hammered out over the weekend to rescue the Eurozone.
Moody's and Fitch warned they were reviewing European sovereign credit ratings and commented that the 'fiscal compact' deal was not enough to solve the Euro crisis. See more here at Reuters.
US stocks were down 2% in late trade, while European stocks fell 3%. As is often the case when investors shift out of riskier assets and currencies, the New Zealand dollar fell to 76.2 USc this morning from well over 77 USc yesterday.
The Italian 10 year bond yield rose more than 40 basis points to 6.98%, which is seen just below the 7% threshold beyond which Italy's debt is seen as unsustainable. See more here at Bloomberg.
The European banking system remains under severe stress, particularly in France, Italy and Spain, where banks are exposed to each other and sovereign debt in Southern Europe.
Europe's economy is sliding quickly back towards recession and Chinese export growth to Europe slid sharply last month.
The Bundesbank also commented overnight that it remained opposed to European Central Bank money printing to buy bonds. See more here at Bloomberg.
The gold price fell more than US$50/oz to under US$1,700 an ounce. Fears about a global downturn and a lack of fresh money printing depress expectations about inflation. The gold price often rises and falls in step with inflation expectations, given it is often seen as protection against inflation.
More than half of New Zealand's merchandise exports are to the Asia Pacific region, including Australia and China, while just 7% of our exports go to the Eurozone area.
Meanwhile, chipmaker Intel cut its revenues forecasts overnight, citing a drop in orders from computer makers because of a shortage of hard drives normally made in flood affected Thailand.
Closer to home, shares in Trade Me are expected to start trading this morning. The shares were priced at the top of their float range of NZ$2.30-NZ$2.70, which is around 15.6 times forecast earnings per share and seen as expensive by some. See our November 9 article here.
However, demand for the shares was strong. Milford Asset Management's Brian Gaynor said fund managers were scaled back. See our interview with Brian Gaynor here.
NZX said Trade Me share trading starts at midday 10 am.
No chart with that title exists.
19 Comments
A PE at 15.6.....you gotta be kidding me....in a market in recession set to stay in recession for a friggin long time....it's their loot not mine.
Now I like the look of fph...paying a healthy div and growing market share and revenues...and a 98% free float....free to be snapped up by a monster for over $4 a share...or more....what's not to like.
FYI from Woodward Research saying TradeMe worth NZ$2.54/shr
http://www.woodwardresearch.co.nz/pdf/Woodward-Research-Trade-me-201111…
cheers
Bernard
"Tax advisers fear the judgment will have a chilling effect on Australian investment in New Zealand by over-ruling the use of tax minimisation practices which had previously been regarded as legitimate." herald
Oops....Wild Bill just felt a chill wind gust through his blather.
Wolly that case, or rather series of cases, ain't over by a long shot. There'll be an appeal and it may go right to the Supreme Court. Toll Holdings, in particular, has a lot riding on it. More here - http://www.stuff.co.nz/business/3432492/Toll-Holdings-avoids-IRD-freeze
Well if N.Z. been enjoying the benefit of Australian investment here ...I'd hate to see our sorry asses if they can't get their own way on tax dodging.
Wer'e not f*%ing Australia's Mexico....!...
One minute endless whining about too much Aus profit being dragged out of NZ. ,next even more whining that they gotta pay their taxes while their screwing us.
OOOh don't upset em they might leave..! Kaaaarist.
That said I take this opportunity to eat some humble pie..........mMMMMMMMMMMNNNNnnot bad....and congratulate The Black Caps on a fine bowling and in the field performance.
I had the cheek to call them The Black Capitulators....I was wrong, I apologise......but it feels soooo good.
Funny that.
And from the 13th century islamic kingdom we get to hear of another step toward improving human rights etc....and not a peep outa Hillary...!
"A Saudi woman was beheaded Monday after being convicted of practising sorcery, which is banned in the ultra-conservative kingdom, the interior ministry said." herald
In this excellent video, Kyle Bass argues a point that I think we should all be aware of. Namely, that governments don't forewarn of drastic measures, if only because they can't really do that. They will always insist that all is well until it is not, or they would risk causing a stampede. The take away from that insight at this point is that we can't feel safe because our governments - or the main media that move in lockstep with them- haven't warned us.
8><---------
"Ilargi: These are the same banks that the same Harry Wilson reported earlier this week hold $2.35 trillion of toxic assets, $721 billion for British banks, and $700 billion for German banks. That last bit is reason for Germany to ponder nationalizing Commerzbank. Just like Spain wants to clean up $236 billion in "impaired" real estate assets in its banks. It's also why Greeks are emptying their bank accounts."
Well over 2Trillion in toxic assets........
http://theautomaticearth.blogspot.com/
regards
Get Current prices of SGX Nifty . Live & updated rates of SGX Nifty Futures & other Stock Market Futures . Live Chart of SGX Nifty Index.
All those who were hoping that Egypt would open its stock market today, as had been indicated previously by the Egyptian Central Bank, will be disappointed. Not only will the CASE not open today, but it will remain shut on Monday and Tuesday as well. The reason: the Thermidor reaction at local banks is starting.
"The gold price fell more than US$50/oz to under US$1,700 an ounce. Fears about a global downturn and a lack of fresh money printing depress expectations about inflation."
How bad does that read? Oh no, they might turn off the taps....the world is full of money junkies, we promise, just one more fix and we'll go straight....
Second largest bank in Germany on verge of collapse
http://hat4uk.wordpress.com/2011/12/12/crash-2-breaking-commerzbank-in-…
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.