Here's my summary of the key news overnight in 90 seconds at 9 am, including news the New Zealand dollar has firmed to near a 1 year high of 79.6 Australian cents as a tightening of interest rate differentials made the New Zealand dollar relatively more attractive.
Long term Australian bond yields nudged down to record lows as investors looked at the prospects for slowing Australian growth after Chinese demand for iron and coal slumped. Australian investors are expecting the Reserve Bank of Australia will cut short term official rates by more than 50 basis points over the coming year, while the Reserve Bank of New Zealand is expected to hold its Official Cash Rate for at least the next year. A divergence in commodity prices is partly responsible, with the US drought driving up 'soft' commodities such as milk powder at the same time as a hard landing in China drives down 'hard' commodity prices.
Meanwhile, the New Zealand dollar was flat to marginally lower vs the US dollar at around 82.35 USc in morning trade. Appetites for 'risky' assets such as the New Zealand dollar were further reduced overnight as US stocks fell 0.5% and European stocks fell 2.7%. See more here at Bloomberg.
There are renewed fears that the massive stimulus now being applied by the European and US central banks will not be enough to restart global economic growth.
Also, there are fresh fears about the European financial crisis. There were new riots in Greece and Spain against austerity measures designed to keep those countries in the Euro-zone. Spain is expected to announce later this week a fifth austerity package in nine months. Tensions in Spain have risen after Catalonia announced elections seen as a defacto vote for independence. See more here at Reuters.
All this concern about Spain saw its 10 year bond yield rose over the 6% level widely seen as unsustainable for Spain's debt position. See more here at Bloomberg.
Elsewhere, doubts also arose over a Spanish bank bailout that most had thought was done and dusted. Germany and Spain said they wanted Spain to bear more of the bank losses, rather than spread them around Europe. Also, see more here from Reuters about a dispute on bailing out Greece again.
In the United States, Philly Fed boss Charles Plosser also said the Fed's third round of quantitative easing was unlikely to boost economic growth or hiring.
No chart with that title exists.
14 Comments
Mario "whatever it takes" Draghi put on the Euro finally sputters out like a damp firecracker.
All sound and fury but still running like mad to stay at the same place, but unfortunately all around him the place is falling apart.
Spain and Greece is on another fire and brimstone phase with rioters and police showing off their skills at each other, while Spain's Catalonia region now behaving more like Germany to it's Madrid's masters......
China is more and more showing it's ponzi economics...
All this will end in a heap on the ground and our Kiwis will just be like Christchurch.....rubble
"There are renewed fears that the massive stimulus now being applied by the European and US central banks will not be enough to restart global economic growth
Philly Fed boss Charles Plosser also said the Fed's third round of quantitative easing was unlikely to boost economic growth or hiring"
No s#*t sherlock. Stating the obvious there.
..and Bernard - the “Dot.Com” story has the potential to do serious damage to the national government and leading again to court cases, costing taxpayers millions.
Under the “leadership” of John Key we have a government, which cannot be trusted. Ethical and democratic standards have over the years diminished.
Romney in death throws, or back stabbed? and its only September.....
http://krugman.blogs.nytimes.com/2012/09/26/death-by-powerpoint-continu…
No Stevo, Romney did not shoot himself in the foot and then stick the injured appendage in his mouth for comfort....
He loaded a cannon full of his postulations, lit the fuse , and casually wandered in front of it,blowing him, and his campaign to smithereens....what a putz.
How bad would you have to be to take advice from George W. on what not to say....?
Obama would have to be caught having sex with a goat while reciting Satanic prayers to look like losing to this Mormon marmoset......I'll bet them undies are gettin itchy about now.
hehehe, female goat, and satanic might be ok, koran, now that would finish him. Mind you the number of religious right wing fundies caught sleeping with young men and/or found hanging in hotel showers while wearing strange evening attire........
I must admit Im gob smacked at how badly he's done and the TV debates have not started yet....they might make the US comedy show top spot.
Sadly Ryan might survive this....I was hoping he'd be finished as well.....
regards
And pretty soon we will hear from the one and only Labour party Parker who will promise growth and prosperity on the back of borrowing far more than Bill English...which Labour post 014 will invest in labour govt pipe dreams et al.
Voters will be faced with a choice!...Labours debt and promised pork...or Nationals misery and left overs.
No points for guessing which way the well trained voters will go...!
more fool them.....but both are the same, just labour says put the deckchairs on this bit of titanic deck and National say no over here....
Lets look at National, they want to pillage our remaining natural resources while dumping the RMA so farmers et al destroy the soil etc...
Labour wants to borrow $s from "investors"
Its the same theft from our children, but I'd argue the former is worse....
In any event both will be shown to be abject failures.
regards
For the NZ Govt to sit and do nothing about the currency is irresponsible bordering on criminal negligence . Our domestic manufacturing is being gutted , our coal mines cant compete ,unemployment in these sectors is under strain , all worsened by the strong NZ$ .
At what point in this currency war are we going to protect our national interest?
Maybe when the dairy sector feels the pinch from substantially cheaper competitor prices ?
A sign of the times.
http://www.theburningplatform.com/?p=41245 - Always a good sign
Radioshack has burned through $150 million of cash in the last three quarters. They have $355 million of debt due in the next twelve months. They had $500 million of cash left at the end of the last quarter. Their CEO quit today, 4 days before the end of this quarter. He was on the job for one year. I’m sure that bodes well for the next earnings report. Their stock has plummeted from $13 to $2 in the last twelve months. They operate 6,200 stores in the U.S. and employ 34,000 full time Americans.
Not for much longer. This dying company will go bankrupt in the next year, leaving 6,200 strip mall and regional mall vacancies and putting 34,000 more people on food stamps. The retail death march will continue as the MSM proclaims recovery. So it goes.
From the comments:
Another retailer that will certainly go bankrupt in the next year – RiteAid
Here are the facts:
They have lost $344 million in the last twelve months
They have $6.1 billion of debt and NEGATIVE $2.6 billion of equity
Their stock price is $1.20, down from $48 in 1998.
They have $94 million of cash left and $228 million of debt due in the next twelve months.
Their comp store sales are negative.
They operate 4,600 stores and employ 51,000 people. More strip mall vacancies and 51,000 more food stamp recipients coming down the pike.
Book it.
Boomer: Why you talking to your etch-a-sketch
Millennial: Because its a Smart Pad.
Boomer: Can you repair it when it breaks?
Millennial: No.
Boomer: Guess you wont be getting a job in China
Millennial: Commies! Socialists!
Boomer: Hey, see if your Smart Phone understands this, “Welcome to Jack-in-the Box, may I take your order?”
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