Here's my summary of the key news overnight in 90 seconds at 9 am, including news of a huge fine for a big bank.
Markets are settling after their initial reaction to the surprise US Fed non-action. Emerging economies are relieved and recognise they have an unexpected short-term window to prepare themselves for tapering.
The combination of the international reaction, with our better than expected Q2 GDP growth, has seen the kiwi dollar settle quite a bit higher, especially against the Aussie. The TWI is almost at 78.
In the US there has been quite a bit of positive data slip out under the cover of the Fed drama. Leading indicator data, home sales levels, house construction, and a range of manufacturing indicators all came in higher and better than expectations. Initial jobless claims also came in higher, which is not so good, but they too were lower than was expected.
The Fed news has sort of overshadowed another big market event; Mary Jo White and her new toughened SEC have slapped a huge US$920 million fine (NZ$1.1 bln) on JPMorganChase for the US$6.2 bln London Whale trading fiasco, and extracted an admission of guilt over management's lying about the saga to regulators. (US$220 million of the total fine is being paid to British regulators.)
JPMorgan aren't free and clear yet; two other US regulators are yet to settle.
And they have been hit by a US$300 mln order to refund credit card customers who were billed for services they didn't get. It's not been a good week for CEO Jamie Dimon.
Here's a news item you don't see every day. Australia’s top 100 companies gave their chief executives an average pay cut of AU$74,000 last year, as investor pressure on boards to rein in executive remuneration intensified. That brought the average down to AU$1.9 million.
The NZ dollar starts today at 83.6 USc, 88.6 AUc, and the TWI is at 77.8. its highest level since mid May. The all-time record high was 86.3 USc with the TWI at 79.3 on April 12 earlier this year.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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10 Comments
Only way fines have any value at all is if they come out of the bonus pool ie should acknowledge that the theoretical owneres have no pwer at all in the relationship - yes this can be manipulated as well but at least.... - actually 'at least' nothing. These people can corrupt everything and everyone and they have
And they have been hit by a US$300 mln order to refund credit card customers who were billed for services they didn't get. It's not been a good week for CEO Jamie Dimon.
Adrian Orr must feel the same - he is the odd man out in a series of senior public servant salary rises well above the inflation rate. Read more
Adrian Orr, chief executive of the New Zealand Superannuation Fund, saw his pay packet - likely to be linked to the performance of the fund - drop by $70,000.
David, both you and Hickey have been noted lauding the returns of this fund. Where did it go wrong behind the veil of commercial sensitivity?
The Golden Dawn are back in the news in Greece - http://www.theguardian.com/world/2013/sep/19/greek-prime-minister-golde…
As thousands gathered in Athens to attend the funeral of the anti-fascist hip-hop artist Pavlos Fyssas, the conservative leader said his ruling coalition would not tolerate neo-Nazis destabilising the debt-stricken country.
Yeah Right!! - brown shirt criminal activists heralded the rise of Nazism - when will we ever learn not to create the political vacuum that is filled so easily by fascist thugs.
" Golden Dawn " may have been the new name NZ Labour's think tank came up with , to herald their revitalized approach to politics , raining promises of more money & liveable wages on us from their lofty perch upon high ....
... but as the name was already taken , so they've settled for something else , to signify their benevolence towards the voters of NZ , Labour's 2014 election campaign will be known as the " Golden Shower " ....
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