90 seconds at 9 am

90 seconds at 9 am: NZ$ at six-month high against AUD; yuan rising; US house prices at 2003 levels; OECD urges more European money printing

28th Mar 12, 8:39am by David Chaston

Here's our summary of the key news overnight in 90 seconds at 9 am, includings news the New Zealand dollar was little changed overnight, except we rose against the Aussie dollar.

Markets are worried that China is slowing faster than expected, and Australia could be the main casualty.

Our dollar rose to its highest level against the Aussie in over six months. At the same time, China is signalling it is prepared to let its currency rise.

Meanwhile, in the world's biggest economy, stocks fell slightly - the Dow was off its recent highs - as consumer confidence fell in March (although it was higher than expected), hot on the heals of yesterday's news that US house prices sank as well. Home prices fell to new lows in January, but the rate of decline appears to be easing, offering the latest sign that an elusive bottom in prices could be in sight. US house prices are now back at 2003 levels.

But the stock market is holding near those recent highs because Ben Bernanke has held out the prospect of more quantitative easing - jobs growth seems to be the current focus of US monetary authorities.

In Europe, the OECD has come out supporting more money printing there to try and kick-start the region's economy.

Across the Tasman, the Aussies are strugging with some big issues in addition to grappling with the consequences of a China slowdown. They are coming to terms with the reach and security risks of China's state-owned Hauwei telecommunications equipment supplier, seeing house prices fall, and a big mid-market bank, the Bank of Queensland is struggling.

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12 Comments

by Wolly | 28th Mar 12, 8:58am 1332878319

What's that term...ex trap o late....oh yeah that's the one. Doing that with the China news and the info on yet more printing leads me to a conclusion....the shite is yet to hit the fan in NZ....but it will....and you too can expect to be splattered.

The red flags are ripping in the gale...stay away from debt...get out of debt....stash the cash and only buy what you need...this new normal has some nasty surprises in store...

by Andrewj | 28th Mar 12, 10:27am 1332883651

Any beef farmers out there should read this

http://www.agrimoney.com/news/april-critical-for-feedlots-as-market-wob…

However, this year, prices have weakened in March, sapped by, besides the surprisingly buoyant feedlot population, signs of flagging demand, with total cattle slaughter running 40,000 head a week, or 6%, lower so far in 2012 than in the same period last year.

"The slaughter rate is not what we need to be seeing at this time of year if we are going to be getting stronger prices," Ben Parks, at FCStone's Kansas City office, said.

Pink slime

The soft demand is attributed in the main to low margins packers receive for processing beef – a profitability squeeze which may be being enhanced by the furore surrounding so-called "lean finely textured beef", or LFTB, termed "pink slime" in the media.

LFTB - which consists of finely-minced beef offcuts, from which much of the fat has been removed – is at the centre of a storm over food-safety concerns, which the beef industry strongly deny, including over the use of ammonium hydroxide in processing for killing bacteria.

The product, which the Safeway supermarket chain is to stop selling, with other retailers considering curbs, is used for purposes such as a filler in ground beef – which accounts for 40-45% of beef consumed in the US.

"This story won't go away," Mr Parks told Agrimoney.com.

by andyh | 28th Mar 12, 10:38am 1332884314

An absolute peach of a paper entitled:

'Global Oil Risks in the Early 21st Century' originally published in Energy Policy and republished in the Oildrum:

http://www.theoildrum.com/node/9015

Succinctly written and illustrated and very well referenced.

A great summary for those already familiar with peakoil and an excellent primer for those new to the concept and wanting to understand what its all about.

by Vera Fayed | 28th Mar 12, 10:54am 1332885286

That is a great article. Everyone should post that link on every MB they can.

by Belle | 28th Mar 12, 11:14am 1332886466

My father rode a horse, I drive a ute, my son flies a helicopter, his daughter will ride a horse.....new nz farmer saying

by Christov | 28th Mar 12, 12:23pm 1332890589

My Father rowed a boat. I bought a launch. My son sailed the seven seas. His son may have to stay indoors.

by Andrewj | 28th Mar 12, 11:09am 1332886194

Subject: FW: A NEW SCAM TARGETING OLDER MEN

Women often receive warnings about protecting themselves at night in

the street and in dark car parks etc. but this is the first warning I

have seen for men. I wanted to pass it on in case you haven't heard

about it.

The scam seems to normally take place at shopping centres Here’s how it

works:

Two good-looking 20-something girls come over to your car as you are

packing your shopping into the boot. They both start wiping your

windshield with a rag and a widow cleaning product, whilst wearing

their low cut skimpy T-shirts. It is impossible not to look.

When you thank them they say that they don’t want a tip but would like

a lift to a nearby McDonald's.

If you agree, they get into the back seat. On the way, one of them

starts to undress and then climbs over into the front seat and starts

crawling all over you, while the other one steals your wallet.

I had my wallet stolen on the 4th, 9th, 10th January, twice on the

15th, 17th, 20th, 24th, & 29th. Also 1st & 4th February, twice on the

8th, 16th, 23rd, 26th, three times already today and very likely again

this coming weekend.

So tell your friends to be careful! What a horrible way to take

advantage of older men. Warn your friends to be vigilant.

By the way, Tesco has wallets on sale for £1.25 each but I found

cheaper ones on E-bay for 99p and therefore have bought a two dozen.

by Wolly | 28th Mar 12, 11:14am 1332886476

Fairs fair AJ...put a wad of monopoly notes in the wallets mate.

by Christov | 28th Mar 12, 12:33pm 1332891226

Miss Talackova has been dealt an unfair blow it would seem....meeting all of the requirements for the freak show only to find the freaks don't like Surprise Genes,...it's not the fit ,..it's the rub.

Perhaps Gender reassignment should include some feline qualities in order to better relate.

by Wolly | 28th Mar 12, 11:12am 1332886324

Try phoning Trademe to tell them they have a scanning virus on their site....like what a waste of time...they expect me to pay for the call.....haaahaaaaaaa

by rastus1 | 28th Mar 12, 11:28am 1332887324

Never fear Wolly...I suspect the smart boys at Torpedo 7 have Trade Me in their sites..see the latest move at http://pickapicker.co.nz/news/?p=962

by Wolly | 28th Mar 12, 12:43pm 1332891802

NZ Pig Trough Report.

"Public organisations have paid about $90 million to their chief executives in a year - with some receiving rises of more than 20 per cent, and one getting a 55 per cent increase.

Public bosses received an average $340,000 each in the last financial year - up $14,000 (4.3 per cent) on the previous year. The median income in New Zealand from wages and salaries during the same period increased $1600 (4 per cent) to $41,600.

But some chief executives received rises far in excess of these percentages, according to a Herald survey of about 300 Crown entities, councils, state-owned enterprises and other organisations in the public sector.

The best-paid chief executives were from state-owned energy companies."

http://www.nzherald.co.nz/employment/news/article.cfm?c_id=11&objectid=10794629