Here's my summary of the key news overnight in 90 seconds at 9 am, including news that the TWI hit record territory last night. At about 10pm it reached 77.23, but has fallen back to 76.94 this morning, which is still above the previous record of 76.88 set way back in July 2007.
At that time, the RBNZ intervened to push the level down. back in 2007, it was our strength against the Japanese yen and the Australian dollar that caused concern. Today it is strength against the US dollar and euro that is causing the spike. Yesterday's stronger than expected data in the monthly PMI manufacturing index probably helped bouy sentiment. You can read more about the TWI here.
The IMF said the talk of 'currency wars' is overblown.
There's plenty of other overnight news. Briefly, Warren Buffett has launched a NZ$33 billion takeover bid for Heinz. That means he could end up owning the Watties business in New Zealand.
US jobless claims for the unemployment benefit plunged last week, showing US employers have little need to trim staff as demand improves.
In Europe, their economy contracted more than expected. The 0.6% decline in GDP during the fourth quarter means the euro zone has effectively been in recession since 2011, with Germany also succumbing to the malaise at the end of last year. It is hurting many companies, including carmakers. European policy makers are following a policy of austerity and tax increases.
The European Union’s executive proposed a financial transactions tax in 11 countries starting in 2014 to raise up to €35 billion a year (NZ$55 bln), a step that critics said would hit savers and pensions.
The Japanese economy also shrank unexpectedly last quarter. Falling exports and a business investment slump outweighed improved consumption, bolstering Prime Minister Abe’s case for more monetary stimulus to end deflation. Japanese policy makers are following a policy of additional stimulus.
In Australia, the CBA boss, Ian Narev is clear about not outsourcing jobs. He is the owner of ASB and he criticised controversial moves to outsource jobs to overseas workers, labelling the practice as short sighted and fraught with danger.
The Australian competition regulator is about to investigate the practices of the two major supermarket chains, one of which - Woolworths - operates in New Zealand under the Countdown brand. Our own research shows that it is cheaper to buy groceries here than in Australia.
The kiwi dollar starts today at 84.7 USc, 81.9 AUc, and the TWI is at 76.9.
No chart with that title exists.
14 Comments
It’s the Interest, Stupid! Why Bankers Rule the World
http://www.globalresearch.ca/its-the-interest-stupid-why-bankers-rule-t…
Did ya figure..... we pay gst on all that interest rp...? Aint she a boondoggle of a scum system...banks cannot fail to fatten their lords and bosses....while the peasants work for them...and they farm the country...and buy off the govts...and tell Wheeler what he is allowed to do...haha
And the lords and masters live in extreme luxury...from properties in all the 'posh' places...top end autos...big bigger boats...the best of medical care...only the best schooling for their sprogs...endless holidays...fabulous food...never shopping where the peasants have to go...Bank bosses living as lords of the land.
Nice one Andrew. As I have banging on with for a while now, interest will always cause a redistribution of wealth. The effect was first noted by Aristotle. (Book one, Part X).
I like this bit about exponential growth: Exponential growth is unsustainable. In nature, sustainable growth progresses in a logarithmic curve that grows increasingly more slowly until it levels off (the red line in the first chart above). Exponential growth does the reverse: it begins slowly and increases over time, until the curve shoots up vertically (the chart below). Exponential growth is seen in parasites, cancers . . . and compound interest. When the parasite runs out of its food source, the growth curve suddenly collapses.
Funny how the population growth turned away from its exponential curve in 1961, food getting scarcer perhaps?
I would imagine if you could dig deep enough you wold find some big banks.
The Hawkes bay irrigation scheme looks like getting the green light even though, hardly any farmers want it. Its going to be funded by the BNZ and existing farmers will be priced of the land. John Key has already stated that he believes that the future of farming in NZ will be more corporates.
IF the scheme gets the go then expect Heinz to be a big player in growing crops on rate payer subsidised irrigated land.
>>>
In Canterbury, BNZ's agri-lending book had grown 52 per cent since January 2011.
One farmer client is proceeding with a $100 million dairy farm and irrigation conversion in Central Otago. The project involved the conversion of existing farmland to dairying, including installing 15 pivot irrigation systems, worth up to $2m each, plus the building of dairy sheds and other facilities.
"He's going to irrigate a big plains area, and it will create about 15 dairy farms. "It was a visionary plan, and its like a 10-year plan ... he's bought the land up over time but it's a long way from the water," Thorburn said.
BNZ had provided some backing to the $82m Rangitata South Irrigation Scheme. The scheme, which involves Timaru businessman Gary Rooney, is due to be finished next year to provide water to up to 16,000 hectares.
This was just one of many water infrastructure or irrigation-based plans to improve productivity, some of which BNZ was backing through its Christchurch agri-team, which had a detailed knowledge of the dairy sector, he said.
http://www.stuff.co.nz/business/farming/7149726/Big-increase-in-BNZs-ag…
Rooney, hope he didnt get burnt by SCF.
>>>
BNZ Advisory has been engaged to evaluate the financial feasibility of the Project , to assist HBRC with its decision on whether to proceed to the next stage of the Project), or cease Project feasibility investigations http://www.hbrc.govt.nz/HBRC-Documents/HBRC%20Document%20Library/120919… All with the ratepayer as backstop.
Wonder why Harvard need a cayman Island subsidiary for their NZ investments. My MP didn't telle about that, he must have forgot.
Harvard's endowment fund purchased Big Sky from receivership in October 2010 for about $32 million, and had since expanded the herd about five-fold to 6318 cows valued at $9.83 million, turning around a $1.1 million loss in 2010 to a $4.87 million after-tax profit for the year to June 2011.
The farms of Ainwick, Tercio and Saran in the Maniototo, plus an adjacent Harvard property, Helenslea, are operated by Harvard subsidiary Cayman Islands incorporated and New Zealand-registered DF1 Ltd, which booked revenues bounding from $1.77 million in 2010 to $11.3 million in 2011.
http://www.odt.co.nz/news/farming/197096/harvard-fund-turns-around-big-…
Wonderful article AndrewJ
I have asked Bernard to put it in the Top Ten or even do a feature article about it. It is amazing when the penny drops and what seems "complex" and incomprehensible is revealed as a simple con.
Why doesn't the Government use KiwiBank as its bank? A lady at Kiwibank told me it would be a "conflict of interest". A conflict of "whose" interest??
Wonderful article AndrewJ
I have asked Bernard to put it in the Top Ten or even do a feature article about it. It is amazing when the penny drops and what seems "complex" and incomprehensible is revealed as a simple con.
Why doesn't the Government use KiwiBank as its bank? A lady at Kiwibank told me it would be a "conflict of interest". A conflict of "whose" interest??
Warren Buffett has launched a NZ$33 billion takeover bid for Heinz. That means he could end up owning the Watties business in New Zealand.
NOTE - He is buying the company, he is NOT buying shares
Some time back i did a post. I refered to an interview Warren Buffet had in which he said
" I buy companies, the sharemarket is only for selling companies that you don't want"
That is why the whole western world is setting up super funds so the mugs (the 99%) can give their money to the 1% via the sharemarket.
Notice how it all started with the baby boomers now it includes every generation including babies.
If super funds closed down sharemarkets all over the world would collapse
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