Here's my summary of the key news overnight in 90 seconds at 9 am, including news that is dominated by the death of former British Prime Minister Margaret Thatcher.
Thatcher memorably said the euro was "perhaps the greatest folly of the modern era", a view that some would argue has been borne out by events in recent years.
She went on to say that poorer countries would lose out from the euro because it would "devastate their inefficient economies". However, being 'right' never made her popular and even today there will be little affection even if there is respect. In Europe the mood is for the easy options rather than facing up to making tough decisions, even when tough situations are forced upon them.
Portugal and Greece are suffering further pain, while key data out of Germany is positive.
The Australian have announced a currency deal with China, although it may be somewhat less than they were seeking.
Their currency is being blamed by some for the shrinking of domestic carmaker Holden, although consumers are voting with their dollars for other brands many of which are more expensive in their market.
The Japanese stimulus package looks like it is being well received in Japan and on the way to achieving its goals - but it early days yet and remember, so many previous Japanese initiatives have come to nothing.
The Japanese stock market has gained almost 50% since the beginning of the year and climbing strongly in the past week. The Dow is up in mid-day trade, US oil is unchanged (although New Zealand pump prices are falling), and gold is at US$1,575/oz.
The New Zealand dollar hit new heights overnight as is now over 78 on the TWI. This morning, it is leading all currencies higher. NZ First says exporters should get at tax cut to mitigate the impact of a high NZ$.
The Kiwi dollar starts today at 84.6 USc, 81.3 AUc, 83.6 Japanese yen, and our TWI is at another record post-float high of 78.07.
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Ohhhh Boy oh boy...!
“Direct trading is likely to lead to narrower bid-ask spreads and lower costs for customers,” said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. “We do not expect a lot of foreign-exchange trading volumes as most flows are still settled in the U.S. dollar, ha ha ha ha ha ha deary me, but the announcement represents an important move in collaboration between the two countries and in the development of offshore markets.”
Rising UsageChinese Premier Li Keqiang took office last month and retained Zhou Xiaochuan as central bank governor, a vote of confidence in policies that include promoting the usage of yuan in global trade and finance. Zhou is seeking to reduce reliance on the dollar, as China has accumulated $3.3 trillion of foreign-exchange reserves, the world’s largest stockpile.
Check.!....back to you Ben.......um ...er...
This could come back to bite them in the AUS. (please read AUS with upper crust accent )
Some interesting developments with the Auckland Council's Unitary Plan. Radio NZ reports; "The Auckland Council has split unexpectedly over how and when to introduce its 30-year growth blueprint."
http://www.radionz.co.nz/news/regional/132291/auckland-councillors-brea…
And; "Open hostility towards Auckland Council representatives flared at a public meeting in the suburb of St Heliers on Monday night."
http://www.radionz.co.nz/news/regional/132311/anger-at-council-consulta…
On the same day that Margaret Thatcher died , the Holden car firm has announced 500 job cuts across Adelaide & Melbourne ......
..... proving the Baroness correct , that no matter how much money you throw into protecting & subsidising particular industries , they'll cripple themselves and succumb eventually anyway .....
I well remember the day that younger brother bought a Holden , I felt 'like dying in that moment , too ....
Yeah, sorry, you are right. A bit loose. What I was trying to point out is that since late November the Nikkei225 has risen from 9,308 when the run started, to today's 13,415, a rise of 45.7%.
The Japanese election was on December 16, 2012 but the LDP was campaigning before then on the policies that have been announced recently. The LDP was being tipped to win, so markets started pricing in the consequences of QE shock-and-awe.
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