Here's my summary of the key news overnight in 90 seconds at 9 am, including news 'Frankenstorm' Sandy appears to have caused US$20 billion of damage across the eastern coast of the United States.
Bloomberg reports Eqecat estimates the damage could rise to US$20 billion, which would be about half the cost of Hurricane Katrina. Economists estimate the storm could reduce US GDP by around 0.1-0.2%, given the world's largest economy generates around US$13.6 billion of output each year.
Meanwhile, the US stock and bond markets were closed for a second day overnight, making it the longest shutdown of the US financial markets for weather reasons since 1888. Trading was closed for four days after the September 11 attacks and markets were closed for longer in March 1933 when then President Franklin Delano Roosevelt declared a bank holiday.
Bloomberg reports the New York Stock Exchange is expected to open for normal trading tomorrow.
Elsewhere, the Bank of Japan announced an 11 trillion yen increase in its asset buying or quantitative easing programme to 60 trillion yen. However, the yen rose after the announcement and Japanese stocks fell because the fresh stimulus, the second in two months, was less than expected.
The Bank of Japan also announced a "Stimulating Bank Lending Facility" to encourage bank lending to businesses, similar to the one announced by the Bank of England last month.
Japan's economy was estimated to have contracted 5.1% in the third quarter from the second quarter as the global economy slowed and car sales in China crashed after public protests in China over a territorial dispute.
Meanwhile, the New Zealand dollar was solid around 81.9 USc and was also slightly firmer against the yen. See more here from BNZ's Mike Jones on our site.
New Zealand wholesale interest rates fell yesterday and financial markets estimate a 75% chance of a 25 basis point cut in the Official Cash Rate by the middle of next year. Economists, however, expect the OCR to be held at its current record low 2.5% until late 2013 by the new more hawkish Governor Graeme Wheeler. See more here from BNZ's Kymberley Martin on our site.
No chart with that title exists.
7 Comments
New Zealand Super Fund hit: catastrophe bond position not so good - let's hope Mr Orr sold them or will it be a case of doubling down?
These high civil servant salaries are a major cause for losses to be funded by the taxpayer - the recipients are always looking to justify the income - NZ should employ the US bank dealing room rules - nobody get paid more than $150,000.00 basic salary - the rest is bonus performance money.
As I have said before they should have stuck to government bond purchaes - especially so, since the Fed is buying, and probably more so from now on.
Scary stuff. When was that Fact Sheet published Stephen H? Timing is everything when you consider the events over the last 5 years and what sort of catastrophe's the Super Fund was looking into... "This will mostly be invested in securities that cover US hurricanes and earthquakes, with some products covering European wind storms and Japanese earthquakes."
Gummy, Bernard here is your chance...
http://www.stuff.co.nz/stuff-nation/assignments/7769690/Can-you-fix-the-NZ-economy
Wpac Economic wrap Today.
US house prices rose
0.5% in Aug according to the S&P-CS 20 city index, for a
2.0% yr annual pace of gain, the highest since the tax credit for home buyer boost
to prices back in 2010. More evidence that housing is slowly finding its feet again.
http://www.bloomberg.com/news/2012-10-30/u-s-prosperity-slides-in-index…
This Bloomberg article mentions New Zealand a bunch of times- ranking us at the top end of all the various measures- we certainly look good on paper at least
Denmark is the most entrepreneurial and New Zealand has the best education,
A finding discredited by an imported English Secretary of Education:
Education commentators have been aghast this week that the Secretary for Education does not consider our education system "world class". Writing a foreword for the ministry's annual report, Lesley Longstone said: "The system is still underperforming for Maori learners and Pasifika learners, and learners from communities with significant social and economic challenges. While our education system continues to underperform for these learners, we are not entitled to call ourselves world class."
Interesting. Who do we believe, the man with the money or the possibly conspiring English middle class aspirant?
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.