Here's my summary of the key news overnight in 90 seconds at 9 am, including news US GDP grew 2.0% from the previous quarter and grew 2.3% from the same quarter a year ago.
While modest, it is still growth of US$612.5 bln in a year, growth that is 3.7 times the size of the whole NZ economy. In fact, the dollar amount of the US economic growth, even though it is 2.3% of their economy, represents 8.4% of the Chinese economy which itself is growing at a slower rate (7.4% pa). More economic growth is going on in the US than anywhere else in the world and more than most people realise.
Along the same lines, candidate Romney is touting that he will grow US employment by 12 million jobs in the next four years - the problem with that claim is that it is about what most economists are expecting for US job gowth no matter who wins.
In Europe, Swiss bank UBS has announced big job cuts - they aim to shrink the investment banking division, and all up that will cost 10,000 jobs companywide.
In Australia, Fitch has reaffirmed their AAA credit rating after a budget update showed the economy there slowing and tax revenues declining. The Australian government has also reaffirmed its commitment to refocussing its economy on Asia, although the move was greeted with some scepticism. The big change is to make learning an Asian language a core subject in schools.
In New Zealand, the government is getting ready to address housing affordability following the Productivity Commission report. The focus will be on development costs and land supply.
The NZ$ opens the week at 82.3 USc and 73.4 in the TWI.
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7 Comments
Similarly to Mutt Romney's jobs growth claim , on that which is inevitable anyway , Julia Gillard has claimed that under her government's direction , the average Aussie wage will grow to $A 75 000 p.a. by 2025 ..... from it's current level of $A 62 000 .......
.... no doubt her union brethren take a very dim view of this , a paltry 21 % rise over the next 13 years .....
They will be calling it Mitt Magic if he could pull that little bunny from the grubby hole that is the U.S. productive economy, .....and have it come up shinning..!
What's his plan for all those returning Vets...?.....National guard..?
Maybe 12 million people on bycycles wearing itchy underpants and ringing doorbells at annoying times of the day is considered employment by Mitt.
On the white paper David....good lord, there's greasing the wheels of industry, then there's just plain embarrassing sucking up, sniveling,imposing a line of thought upon the citizenry of Australia to satisfy the the profit growth of Corporate Australia (and it's parents)...
Now be a good student, forget your culture(such as it is) eat your noodle,appreciate the nuances of ping pong, learn your Mandarin and grow up to be a good citizen, not the unproductive useless individuals your non commie embracing parents were.
Alrighty then class....join me in a rousing chorus of Tsing Ma Matilda......
Sadly we are on the same track ,
China farts, we smell roses, and move closer to inhale deeply...!
A hard landing down under Aussies big Problems - Our Problems?
Good point - it needs explanation ...
The 2.0% / 2.3% reported is the 'real increase' (net of inflation). Almost all reporting of the change in GDP is as 'real'.
The US$612 bln increase is the nominal annual GDP change between Q3-11 and Q3-12. When comparing the $ increase, only nominal makes sense (to me at least). The comparisons to NZ are based on the NZ nominal values for the same period.
Q3 2011 = US$ 15,163.2 annual
Q3 2012 = US$ 15,775.7 annual
Nominal change + US$ 612.5 for the year
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