Here's my summary of the key news overnight in 90 seconds at 9 am, including news credit rating agencies are being sued.
The liquidators of two Bear Stearns hedge funds filed a lawsuit in New York overnight against the three major American credit rating agencies, accusing them of fraudulently assigning inflated ratings to securities in the run-up to the financial crisis. The lawsuit seeks to recover damages from Moody's, Standard & Poor's and Fitch in connection with more than US$1 billion in losses sustained by them.
HSBC and JP Morgan topped the list of the world's top 29 banks that must hold extra capital from 2016 because of their size and reach, the Financial Stability Board revealed overnight.
The FSB is the regulator who the G20 appointed in 2011 to decide on the extra capital requirements that must be kept by the world's top lenders to protect the global financial system stability.
Despite their size, none of our local banks were included in the list.
Overnight, one of China's top investment banks has predicted that China will cut its growth target to 7% next year in a sign of the government’s determination to push through structural reforms.
A cut would be an indication of Beijing’s willingness to tolerate slower growth in the interest of addressing risks from rising debt levels and soaring property prices.
In Australia, a key adviser to the new government is saying Tony Abbott overpromised when he said he would not cut some programs. This adviser says their economy is "running on empty" and a bolder readjustment is called for.
Locally, there is more data out pointing to stronger third quarter domestic activity. Readymix concrete production is up nationwide - even in Wellington. Nationally, 16% more readymix concrete was delivered in Q3 2013 than in the same quarter a year earlier. In Christchurch it is up 28%, and in Auckland it is 23% higher and back to 2007 levels.
Later this morning we will get the October REINZ house price changes which will show the extent of the 2013 Spring bounce.
The NZ dollar starts today at 82.3 USc - a two month low - 88.0 AUc, and the TWI is at 77.0.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
7 Comments
Ratings agencys, there is some comment that they have been threatening to downgrade France because it isnt following their free market doctrines as opposed to actual performance.
I think they should be sued lets see how they really do their sums.
7% is a doubling every ten years.
Where is China's DOUBLED output going to go 10 years from now? where are the inputs coming from?
She's gonna blow Captain.....she canna take it....
regards
Chorus. Interesting trend from the 200 people who bothered to vote (see block on this page)
Allow Chorus to default - if that's what happens - and take a chance on the fate of the UFB network. 30% (63 votes) Nothing - this issue will sort itself out....25% (52 votes) Officially over-ride the Commerce Commission and allow Chorus to retain its current levels of charging 22% (46 votes) Pump equity into Chorus - possibly through a complete takeover 17% (35 votes) Step in as a major lender - replacing the existing syndicate of bankers. 6%. 13 votes. Quite clear result methinks.200 is quite high. Some folk extrapolate from 8 (or is it 11?).
:)
Denial is what you have PDK.
let me see......
finite planet .........................................................................................check.
exponential growth, based on resource extraction ..................... check.
gross population overshoot (via one-shot ff use) .........................check.
A Prof who point out this:
http://www.openfuture.co.nz/unsustainability/meaningofsustainability.html
and another this:
Note the parameters needed for redress.
And that versus someone who squealed - sorry, said I was getting obnoxious - because I pointed out a truth; namely that we were living off others via slave-labour (watch 'China Blue", google Ken Sarowiri and ask which petrol station you use), offshoring of pollution (you live off chinas smog every time you purchase something from there).
Good luck to you, but when even the Fresh Water Accord is a retrograde step, as is the Quota Management System (both in comparison to the progression from untouched to stuffed) Horatio is wsting his time borrowing time. So are those who avoid the big picture.
Denial is a river in Egypt.
PDK has just taken statistic license.
Denial PDK. Your diversions fool only you. (and Steven).
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