Here's my summary of the key news overnight in 90 seconds at 9 am, including news US stocks are up around 0.8% in late trade after better than expected US factory output reinforced hopes that near zero interest rates and money printing might boost the world's largest economy.
Output at US mines, factories and utilities rose 0.4% in September, which was better than expectations for a rise o 0.2% and better than a surprise fall in August.
Meanwhile, European stocks rose 2.5% after talk grew that Spain was on the verge of a conditional bailout request, which may trigger the European Central Bank's 'Big Bazooka' of unlimited bond buying. Two German lawmakers said they would not object to a Spanish bailout request. See more here at Bloomberg.
Stronger German investor confidence also helped. See more here at Bloomberg.
Elsewhere, Citigroup CEO Vikram Pandit resigned unexpectedly overnight. He had clashed with the board over strategy and pressure is now expected to build for a breakup, given its share price is seen well below its value in parts. See more here at Reuters.
However, the New Zealand dollar was weaker overnight despite the rallies on global stock markets.
Normally it rises and falls in tune with appetites for risk on global markets, but this time traders focused on very weak inflation figures for the September quarter out yesterday that increased expectations the Reserve Bank will cut the Official Cash Rate by 35 basis points over the next year.
Lower interest rates make the New Zealand dollar less attractive for foreign investors. The New Zealand dollar fell to 81.4 USc from over 81.7 USc yesterday and was weak at 79.2 Australian cents.
Financial markets see a 20% chance of a rate cut next Thursday when Graeme Wheeler makes his first decision as Reserve Bank Governor.
(Updated with fresh links/background)
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16 Comments
Pandit resigns unexpectedly..? gees didn't we all expect him to resign two years back...? just hung in to round up the 100 mill, then took his boy Friday with him...hmmm can you smell the evidence leaving the building ...? on legs that is.
So you wanna play it's not me it's you...Bernard..?the site has slowed dramatically, tell that IT guy to upscale your servers , I think your advertising is chewing all your virtual memory.
GBH , I was going to ask you over at Brian Gaynors piece there, isnt there a lot of turmoil over retirement fund losses via management funds in Australia presently.......? in fact some wipe outs..?
Things also catching my eye at the mo....The Dutch Banks pleading to keep 1.13 trillion of Dutch pension funds in the Netherlands.....?oooooh, now what was that graph I saw here the other day..?
Provident Capital...tits up.....they a sub prime outfit..?
Will there be anything to learn in Christchurch from the Hastie and Reed inquiry (AUS), with Fletchers potentially doling out sub contracts of taxpayer money to outfits operating while insolvent.....?
Not that I'm aware of , Count ..... but my focus is more towards the stockmarket than managed funds ... there is some turmoil regarding the Gillard government changing the compulsory super fund rules .. .. trying to get their sticky fingers onto the $A 1.4 trillion pot !
.... did you know Vikram Pandit's priors ? ....... he ran a hedge fund ( Old Lane Partners ) , which he convinced Citigroup to purchase from him in 2007 , for $ 165 million & a seat on the Citi board .... the following year ( 2008 ) Citi had to write down the aquisition by $ 200 million .....
He got himself into the CEO seat at Citigroup , and garnered a total compensation package ( salary is just the small stuff in the super-salad of a CEO's banquet ! ) of $ 265 million .....
..... only in America !
Maybe a scripting problem in the Advertising, an incompatability with certain search engines usng AVG as the security......
I'm using chrome, have no probs anywhere but here,....the bank, stocks, ya de ya all good....just here , it's as if the page cannot load completely, trying to read something with incompatable script........and yes before you ask ,ultra broadband.
Fonterra's Shareholder Fund Board announced:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=108…
I am aware of the two Fonterra members. Any comments on the other three?
.....and not to forget - the talk of the day/ week = Key vs Shearer, which of course has an impact on our nation – financially/ economically/ etc..
It is a disgrace for a nation having a leader, who’s lying regularly and so many times. Considering John Key shares responsibility for ethical and democratic standards diminishing, the fact he’s untrustworthy and one of the poorest performers in parliament - he should step down. I think the NZpublic had enough.
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