90 seconds at 9 am with BNZ: G20 bicker over US$2 trln rescue funds; Reforms to DPB, widows and dole expected; Industrial action hits Affco, Oceania, Ports of Auckland

Here's my summary of the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including news that leaders of the world's 20 largest economies met in Mexico over the weekend to work on plans for US$2 trillion worth of rescue funds in case of further financial system strife.

However, an agreement seems a long way off with America insisting Europe increase the size of its own rescue funds before it agrees to an International Monetary Fund (IMF) request for an extra US$500 billion in rescue funds.

Germany is relucant to agree to an increase in Europe's funds, arguing the issues inside the Eurozone are settling down. See more here at Reuters.

Finance ministers at the G20 were far from united, with disputes erupting between America's Tim Geithner and Germany's Wolfgang Schauble. See more here at Bloomberg.

Meanwhile, closer to home, TVNZ is reporting the National-led government is expected to announce welfare reforms later today.

These could include changes to the rules for the Domestic Purposes Benefit which mean single parents with children over 5 years old will be forced to look for part time work, while those with children over 14 would have to look for full time work.

Also, the widows benefit is expected to be abolished and the Unemployment Benefit replaced with a 'Jobseekers' support' benefit.

Elsewhere, industrial action will see more than 2,000 staff stop work this week.

Stuff reports that Talley's Affco meat processing operation has locked out 700 workers over a long-running employment contract dispute and 300 Ports of Auckland staff continue their three week strike this week.

Also, 1,500 staff at the Oceania chain of rest homes will strike this week.

The New Zealand dollar was broadly steady around 83.5 USc over the weekend.

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The Lamb schedule was back another 30c a kg at the weekend. Its  getting a bit scary. The works are worried, its a good time to slow down processing while the market sorts itself out.  Talley's lpost some money in the meat processing industry last year, a year of record demand a prices. There will be alot more restructuring throgh the year, costs are out of control and the ones at the bottom get it in the neck. The sheep boom appears to be over and its back to normal.
 In the States my daughter tells me Petrol is up another 10c a gallon, people are in shock, big trucks and cars are history.

Yet Turner's say NZers love with big cars is coming back...

Waiting for reforms and a clear economic strategy.
Unfortunately only high unemployment rates will be the beginning of most needed “Intellectual Revolutions”, then often triggered by the wrong people – ending up in riots and worse.

Keep an eye on the livestock virus breaking out across Europe and the UK....the meat mountain may become a void over the next 8 months....leaving Kiwi producers to reap high prices for the xmas trade...

Vacine due out in October

October 2014...!

Wolly – why then all your fuss and negativity – daily - NZ's world is wonderful ;-) ?
But back to your argument – food production – smell the air of an open milk container one/ two days old – does it smell like milk ? Does it taste like real milk ?

It's a work of art Walter...gets better when it turns green.
"Fuss and negativity"....is that the best you can do Walter?....poor mans polly speak!
When you don't like the message in the picture....say it's not art...it's all fuss and negativity....

Seems Holden is in line for an aussie taxpayer bailout plus a state taxpayer topup....hundreds of millions....oh boy it's a bailout scramble...who wants some dosh....line up here....don't push now the printer has plenty of paper and ink.
What a fabulous route the aussie political liars are taking...headlong into the same shite to join Barry Obama.

"It is possible if not likely we have to suffer through at least 11 more Groundhog days as Greece sets March 8 deadline for investors in bond swap."

only 11?

"force people to look for work" the analogy of herding cats springs to mind.  Nevertheless I'm sure there is just mountains of work waiting to be done.  Maybe we could ask Foxxconn to set up a slave camp here.
Suddenly all that "spare capacity" will, be gone resulting in lack of capacity, increasing demand, but apparently not inflation.

Skudiv - there'll be work. More and more of it. We use fossil fuels like we had some hundreds of slaves apiece, on demand 24/7. Turn the key and a hundred shovel-by-hand equivalents burst into life. Paid?  That's another story.

what has andrew little m.p got to say about affco.
it seens now that he has his snout in the pig feed bin he has lost his tongue .

So, do you know how many economic theories treat

resources as if they are nite? Well, the researchers at the O.E.C.D say “none” – that no such theory exists. Economic

theory either ignores this little problem or assumes you reach out and take the needed resources given the normalworkings of supply and demand and you can do it


. This is a lack of common sense on a par with “rationalexpectations,” that elegant theory that encouraged the ludicrous faith in deregulation and the wisdom of free markets,

which brought us our recent nancial ascos. But this failure in economic theory – ignoring natural limits – risks far more dangerous outcomes than temporary nancial crashes.



This is a fantastic read.

Please provide a link to the OECD statement, thanks

Playing semantics with benefit names it great work for the graphic designers / print brokers / printers etc. What a waste of time.

70 seconds at 7am
"Capital Flight From Italy, Greece, Portugal Accelerates; Two Trillion Fantasy; Merkel Weaker Every Week; Crude and Geopolitical Risks "

70 seconds at 7am.
"Schmallengerg virus cases reach 83
 The number of farms affected by the Schmallenberg virus, a new animal disease which causes birth defects and miscarriages in livestock, has increased to 83, the latest figures show."

More information from Germany:
It seems the virus is spreading fast.

70 seconds at 7am.
This will take the gloss off the presidential job creation recovery in our time blather...

Thanks Wolly for 70 seconds at 7am.
We'll have to find you a sponsor ;)

Bernard – you don’t know how rich Wolly already is with all his copper- mines shares. I think he doesn’t need a sponsor- he owns half of Chile.