90 seconds at 9 am: Berlusconi to attempt comeback, Monti resigns; China rebounding; Fed poised to expand QE; NZ$1 = US$83.3, TWI at 74.5

Here's my summary of the key news overnight in 90 seconds at 9 am, including news that the Italian prime minister, technocrat Mario Monti has quit just hours after the man he replaced, Silvio Berlusconi, announced plans for a return to power.

Given where his party stands in the polls, Berlusconi has a big challenge ahead, but few people would bet against him. And there is a counter movement underway to keep Monti. All this is important for the euro-zone as a Berlusconi return is likely to be seen as very destabilising. The EU has called for the reform process to be extended; they will be looking on from Brussells with concern.

China’s factory output and retail sales topped forecasts last month in signs that an economic recovery is accelerating.

This rebound will be welcome news for the new Chinese leadership as the real unemployment rate in the country is now estimated to be 8.1%, almost double the official figure.

In the US, the Fed is expected to announce an expansion of its QE3 bond buying program to boost their sluggish growth rate as it continues to focus on ways to invigorate the job market. The markets will hear of their actual decisions early Thursday morning.

Before then, and possibly today, we will get the REINZ housing sales data for November.

The New Zealand dollar starts the week at 83.3 USc the highest it has been since late February this year when it spiked to 84 USc.

The TWI is at 74.5, its highest level since July 2011. It is the gains against currencies other than the US dollar that are pushing up the TWI, particularly gains against the euro and the British pound.

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The Warehouse is buying Noel Leeming - https://www.nzx.com/companies/WHS/announcements/230883

The Warehouse Group will retain the current Noel Leeming Group management team, who have proven their ability to satisfy customers and deliver growth in a challenging retail environment.
And GE?

Good to see consolidation in retailing.....to many selling the same products.
QE can and will go on with no limit as every bond purchase has an interest rate attached, however small. Debt deflation will be near impossible to combat.

The Wharehouse, your home for cheap Chinese cr...

Hang down your head Tim Groser.
The irony is that their precious economic growth can't be had, for the same reason that we're in atmospheric trouble. I guess when you deny the one, it's easiest to deny the other.
Imagine how New Zealand history will report that piece of sleazebucketry?

What is your comment referring to PDK?

Do I detect a media urge for socialism...what a shame so many want govt to decide how their lives are lived and what their income should be spent on.

Yeah, good stuff and I hope it works out well for them. The service and staff in our local NL store are second rate at best so I guess it can only improve, not so sure about keeping on the present management though.
I really don't like having little choice other than Aussie owned businesses. An Aussie outfit does the rubbish collection in our area, how fricken pathetic. Oh, that's right; we need the foreign investment and technology - Yeah Right!

Any bites on "socialism"?

Also note QE3 is mainly to help impaired banks not the real economy....trillions have been thrown at this problem but inflation is nowhere. Who believes that?

Hows this for a title for a listing on realestate.co.nz

"Prices in parnell have gone up 90%in 9 years. Grab this opportunity"