Here's my summary of the key news overnight in 90 seconds at 9 am, including news that the good NZ growth in the June quarter stands out as a lone piece of good news around the world. The positive trends in New Zealand may not look very positive to us, but they are in stark contrast to what is happening globally.
In the US, jobless claims are rising, and manufacturing activity is falling, according to reports overnight.
Falling manufacturing activity is also reported in Europe and China, with PMI readings coming in below expectations.
Japan has recorded a sharp fall in exports, due especially to sharply falling demand from Europe - and that is before the impact of the culture riots in China.
Brazil is feeling the pressure of QE3, and their finance minister has lashed out at the Americans.
QE3 is also behind a fall in US mortgage rates; they have fallen to their lowest level on record.
Curiously, Spain has been a successful borrower overnight, getting away a big bond sale at - for them - acceptable interest rates. Draghi's 'big bazooka' is helping them hang in there with their refinancing.
And refinancing is a theme in a recent IMF review, out today, for Australia. The IMF says Aussie banks have too much exposure to international borrowing and that creates a special risk. It noted the high exposure to the housing market. But overall it thinks these banks are well placed to withstand considerable stress.
The NZ dollar starts today at 82.8 USc and is currently 73.5 on the TWI.
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10 Comments
Grumpy - very true. The below is a bit off topic but could be highly relevant to our Agriculture industies future prosperity.
There's another big event that is going on in the USA which is going to cause huge problems and probably a lot of litigation. The below link is the result of a first ever 2 year rat study which has been released on Round-up ready GE foods causing all sorts of health issues including mammary tumours, kidney and liver tumours etc. This study appears to have the potential to unleash a litigation process as big as the Tobacco one. I have not heard anything about this in NZ but it does appear it is a hot topic in other countries.
http://www.scribd.com/fullscreen/106438581?access_key=key-2izaqleqstp6b…
NZ foods like Dairy products and our meat may be in enormous demand as these products may be seen as very safe for consumption. I do however expect that Maize seeds would come under investigation. There is all sorts of rumours floating around that the science was already known by the GE seed companies however it is suggested that similar tactics that were used by the tobacco companies were applied.
I have a classic case of how stupid the world has got going on right now at a neighbours. After failing to sell their premium north Auckland coastal property (couldn't even get an offer) they have decided to knock down the lockwood on a block base and build an eco house.
Trouble is they have digger up there pulling the place apart and smashing up the rubble, then trucks carting it all away. The trucks are doing a round trip of about 50Km and this has been going on all week. The diesel bill alone would supply 100 years of electricity I would pick, just nuts. Even more nuts is the crappy design in the first instance that only lived for 70% of its design life.
Here is an interesting development the increased role of central banks asset diversification into tangible assets gold.
Russia for example has increase its holdings by around 500t since 2005
One of the reasons it has the lowest gvt debt/gdp ratios in the G8.I wonder what the effect on currency flows on the NZ$ would be if the NZ increase its hard asset base.
‘schadenfreude shopping’
Property prices never fall....!
A Stark warning....
""Together with other central banks, the ECB is flooding the market, posing the question not only about how the ECB will get its money back, but also how the excess liquidity created can be absorbed globally," Mr Stark said.
"It can't be solved by pressing a button. If the global economy stabilises, the potential for inflation has grown enormously."
Let's believe in flying pigs and imagine all the printing and bank bailouts lead to greater growth on the back of greater lending...by the bailed out banks orchestrated by the oh so wonderfully successful politicians....fat chance I know but that's what you are expected to believe....the end game of the unbelievable would be..wait for it...booooom...inflation. Now what you criminal reserve bank money printers gunna do!
Down here in Noddyland we have our very own fools flat stick borrowing credit produced out of thin air to splurge on 'infrastructure' cos as they claim this will lead to greater growth in Noddyland and generate heaps of wealth..enough to fund the cost of the thin air credit..but not pay it back!...they have been duped by the bank bosses into believing this is the way to utopia...same rubbish is believed by the pure socialists..just ask Shearer and Parker the wandering student of economic magic money making.
And so we follow the greater fools along a path that steals from savers and sends a very clear message to the next generation....Save and be Dammed....Borrow and have it all now.....
Watch carefully and you will see the very same politicians and bankers and liars escape the vortex with their wealth before the gate slams shut on you lot.
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