90 seconds at 9 am: NZ$ over 81 USc as US stocks rise 0.6% after firm building permits data; USDA reports dairy prices rise; Greek fears returning

Here's my summary of the key news overnight in 90 seconds at 9 am, including news the New Zealand dollar is back over 81 USc this morning, rising in tandem with a 0.6% rise in US stocks. It was around 80.8 USc for much of yesterday. (Video due shortly. We are having problems uploading it to Youtube)

Appetites for riskier assets such as the Kiwi dollar burbled higher after US building permits rose in July to a four year high, raising hopes the US economy may not be as weak as some expected. US stocks also rose after Cisco reported better than expected results. See more here at Bloomberg.

However, the celebrations were doused somewhat by nagging fears the recovery may be enough to delay or even cancel expectations the US Federal Reserve will restart money printing in September. Goldman Sachs has forecast this week that the US Federal Reserve will not go ahead with a third round of Quantitative Easing or money printing at its September meeting. See more here at WSJ.  Markets are eagerly awaiting guidance from a speech by Federal Reserve Chairman Ben Bernanke at the annual shindig for central bankers at the Jackson Hole resort in Wyoming on August 31.

Elsewhere, German Chancellor Angela Merkel said overnight she was 'in line' with the European Central Bank's plans for bond buying to cool down the Euro-zone crisis, but she reiterated it was all about the 'conditionality precondition', which means the bond buying should only happen after a country has asked for a bailout and is prepared to undergo the austerity measures the Germans demand. See more here at Bloomberg.

Markets are relatively quiet during the middle of the Northern Hemisphere summer, but concerns are growing again about Greece as reports emerge it will ask its donors yet again for another two year delay on its austerity plans. German politicians have repeatedly said they would reject another extension and seem relaxed about Greece leaving the Euro-zone See more here at FT.com

Meanwhile, in China, foreign direct investment fell 8.7% in July from a year earlier to a two year low as reports grow of capital flight from a fast-slowing Chinese economy. See more here at Bloomberg.

The New Zealand dollar was also buoyed as the US Department of Agriculture released data on dairy prices traded on global markets. They rose around 5% and are up in line with the strong results from the Fonterra auction on Wednesday night as the worst US drought in 50 years continues to lift feed costs for American dairy feedlots and reduce production. See those USDA dairy price charts here.

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Excerpt from brilliantly written piece "How to Defeat Tyranny" at Zerohedge
"Our financial system is a stampeding procession of nightmare fueled blood-drenched circus freaks dancing in an ether driven haze of pungent absurdity.  It is as if our economy has become a morbid parody of itself, like a queasy piece of horror/comedy cinema.  We are so far along in the collapse of our markets that the banksters no longer see the need to hide the fraud.  With the advent of the Libor Scandal, governments, central banks, corporate financiers, all flaunt their criminality with pride.  Yet, some Americans still clasp their naïve hopes to a chance of fiscal recovery."
And on that note I'm off to work in the garden....

Hunter S. would be proud of that (very apt) description.


Finland is preparing for the break-up of the eurozone, the country’s foreign minister warned today.
He voiced deep suspicion of plans by a “gang of four” EU insiders — including the European Central Bank’s Mario Draghi — to ensnare member states into some form of fiscal union. “I don’t trust these people,” he said.

Interesting link, AJ. The conclusion:
 "I don’t think the banks will lend in to the real economy because they calculate that such a socially useful strategy gives low returns to them. Should they ‘defect’ from this generous strategy and chose instead the selfish strategy of ‘hoard and wait’ then they could make not just a large return but an epic one. They could emerge as owners of everything people will need in order to rebuild their lives. Water, power, rail, hospitals, you name it.


This is what the banks are waiting for. And our politicians are giving them our money so they can."


That's just great! The sleazy banks buying up our assets and infrastructure for pennies in the dollar and clipping the ticket ad infanitum. Course Bill and John are happy to fit right in with the plan. 

Which is what i think the "wise" money that is en-mass in US treasuries is doing....
This fails of course as we can vote in a Govn that takes it all back, the problem is as long as enough ppl have enough of a vest edinterest to keep the ponzi scheme going then their strategy is meaningful...until it isnt......really easy. 
Same wih Saudi and others buying up land and devloping farms to send teh food back home....they are not the sovereign nation..so they can be stopped from exporting it.  Either extortionate export tarrifs or a simple, no.  Vietnam, India, Argentinia, Thailand have all done that sort of thing with thier food I seem to recall.
Which of course the oil producers will eventually do with oil.....I can see it being a barter oil for food....nations with neither will be in a bad way, or like the US use force of arms, to take the oil back of those "stinking arabs president Romney!!!" or maybe Ryan....

The best piece ive read today....

Serious question: who benefits from a high or swinging currency exchange rate (JK's trader mates for the latter).  Follow the money.

eighty odd house under construction in Pegasus so more than a few stories will be going around....

Pegasus has been selling lots on low deposits to builders without any deadline to settle except when the house becomes occupied or sold (even if that's 5 years away).
It seemed too good a deal to be true and I was tempted, except that I heard of a builder who was stuck with 4 houses that he was unable to sell out there.
It does demonstrate how bad section sales in Christchurch are when 8,000 homes get red zoned and you can't sell a few hundred sections nearby, even when they were offered at $149k for 500m2 or $119k for 300m2 and offered lakes, a golf course and other amenities all with those fantastic builders terms.

Property is selling. Bit of a cloud given most of the land& I understand
As a side interest, since the EQs I have subdivided two smaller lifestyle blocks in Rolleston and sold from that  14 built homes. In addition, some in Rangiora, there is demand. 



Among the largest holders freed from the lock-up were venture capital firm Accel Partners, Elevation Partners, which is backed by Irish singer Bono, and Microsoft. PayPal founder Peter Thiel was also free to cash in.

Further lock up periods expire as the year progresses, with an extra 1.44bn shares freed up for sale over the next 9 months, prompting worries that there could be further falls in the price.


Yeah my FB shares have certainly taken a bit of a tumble.

When they get to $US 7:50 , buy them ......
.... $ 19 overnight , only 50 % down from their IPO  listing ......
Be patient , you'll be rewarded soon ...... the insiders are still selling down , bailing out , hand-over-fist ....

"....... large number of baby boomers remaining in the workforce. ........."
Solution: working group of 'experts' appointed to determine ways and means to encourage BBs to go quietly and go now..Best idea from 'working group' is for govt to establish many more 'working groups' appointing BBs who retire early..... to search for ways to encourage more BBs to retire early!!!!!!!