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90 seconds at 9 am with BNZ: Greece at the precipice; NZ$ strong; US employment rising; 'sale-of-the-century''

90 seconds at 9 am with BNZ: Greece at the precipice; NZ$ strong; US employment rising; 'sale-of-the-century''

Here is David Chaston's 90 seconds at 9 am summary of overnight financial news in association with Bank of New Zealand, including news that the pressure is piling on Greece.

With the Germans the dominant influence in the EU and France seemingly in control of the IMF, Greece is fighting for its economic sovereignty today. France and Germany have put a full-court press on Athens in a bid to have it give up its right to control its budget - the IMF and EU seem to want it to cede that power to Brussels - something that will be sending shivers through other EU nations. It is a move that is concentrating minds. The Greeks are resisting of course, and this brinkmanship makes the return of the drachma and a Greek exit from the euro a much more likely prospect. Not only are the Greeks resisting the EU and IMF, they are in fierce negotiations with their bondholders. It's an ugly time to be a Greek politician - and they probably have little support from their voters now as well. They have until March 20 when a very big bond payment is due.

We start the week off here on a brighter basis - the surprisingly strong December trade surplus is helping push the currency higher and we open today at 82.4 US cents.

And in the US, the prospects are brighter too as employers probably added to payrolls there in January in the expectation that the US will avoid fallout from Europe.

International oil is still below US$100 / barrel, despite the escalating tensions around the Iranian nuclear sanctions. Iran is fast-tracking a cut-off of supply to Europe and raising the rhetoric over its ability to shut the Gulf of Hormuz, but markets aren't pricing in any meaningful fallout. Europe is protected by fast recovering Libyian production, and Iran is having trouble finding alternative markets in Asia, the place they thought would cover them.

With Prime Minister Key in Australia, the Aussies are starting to understand the opportunities that may open up for them in what they call "the sale of the century" - the floating of the SOEs here. It is a program than is gathering international investor attention - and even though the SOE sale will be targeted at Kiwis, there will be spin-offs for the Government as it finds investors for its big bond-sale program.

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9 Comments

What is happening to Greece at the moment can happen to any sovereign state when it secedes the control of its currency to private interests.  A country has no sovereignty without economic sovereignty.  This will happen here in New Zealand one day.

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If we contInue to borrow 9% of GDP every 90 days as we did last qtr that happy day will arrive sooner than we think

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Goldman is telling clients to short USD, 100% it's going up.

http://www.zerohedge.com/news/goldmans-tom-stolper-conducts-sunday-hitfest-usd

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Mind you don't step in it.....the pong is SEC farce....on sale in the usa....

"Because Aon co-operated with the investigation, it will avoid prosecution.

The SEC allegations involve various countries including Egypt, Vietnam, Indonesia, Costa Rica, the United Arab Emirates, Burma and Bangladesh.

Aon's subsidiaries doled out more than US$3.6 million in improper payments to get or retain insurance business in those countries, and the company made more than US$11.4 million in profits as a result, the SEC said in a lawsuit filed in federal court in Washington".

 

 

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10774667

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"There are predictions Auckland's population will hit two million in less than 20 years.

It comes as Statistics New Zealand announces Auckland's 1.5 millionth person will arrive in the city this week".

Fabulous news...the slum city is on its way...high rise garbage set to sprout....increased pollution...power shortages...rising land prices....oooops what's that?....hmmm better borrow some dosh and buy up the land before OllyN wakes up......zooooooooom dam that's OLLY wizzing past in his clunker....

Soon everybody except the OllyN's will be tenants in an Auckland high rise slum or living in a pile of shite on Parasite drive....the rents will be stupendously high...and winz will be forking out billions in landlord subsidies.....great govt.

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Thanks AJ...I had no idea she was such a marxist bitch...seems the Germans have some housecleaning to do...I see Cameron gave the bag a kiss on both cheeks....idiot.

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Wally the video is great too, have you got broadband yet? 

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The trouble is AJ, video eats gigs like pollies at the wgtn pig trough eat through taxpayer dosh...so I never open the shite.

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