Here's my summary of the key news overnight in 90 seconds at 9 am, including news its mainly about interest rates.
But first, an election result: Swiss voters have rejected a citizens' initiated referendum that would have limited bankers pay to twelve times that of the lowest paid. It was 2:1 against. (The referendum on the guaranteed minimum wage will be held next year.)
Prices for US Treasuries dropped at the end of last weeks New York trading, pushing 10-year note yields up for the third week this month, on speculation minutes of the Federal Reserve’s policy meeting indicated the American central bank may trim debt purchases by the end of the year.
Investment grade corporate credit default swap spreads in the US fell on Saturday to their lowest level in more than six years, and ended the week at 68.6 bps. They are falling in Europe as well.
Stocks are higher again and still in record territory. Oil is higher too. Gold is lower.
The under-pressure gold dealers in London are reviewing their systems. The pressure is building for the precious metal because some 'experts' think the price does not yet reflect the realities of an actual Fed tapering. The easing of some sanctions on Iran following the weekend agreements includes freeing up the gold trade, but little price impact is forecast.
Consumer financing is expanding in China. They are expanding a trial program that allows non-bank financial institutions to lend to buyers of retail goods, as policy makers seek to increase the role of private capital in the economy.
The NZ dollar starts today quite a bit lower against the US dollar at 81.8 USc and a 2 month low, but is higher against the Aussie at 89.5 AUc, and the TWI is pretty much flat at 76.9. That Aussie cross rate is at its highest level since October 2008, a five year high.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
No chart with that title exists.
14 Comments
Federal Reserve and Wall Street Assassinate US Dollar
http://www.paulcraigroberts.org/2013/11/22/dying-dollar-paul-craig-roberts/
Considering that there doesnt seem much link between a CEO's pay and a companies long term good performance I wonder. ie its easy to agree with institutional share holders on big payouts for a few years in return for a big pay check but really weaken the company long term. So we see mom and pop shareholders asset value damaged by short termism.
Now setting the Govn to regulate it seems silly I agree...but meanwhile it looks like the pillaging will continue.
regards
Banks, like any other commercial entity, make decisions on what to pay their staff. There are all sorts of things that go into those decisions but at the end of the day it is their decision. If you don't like the way a bank (or any other entity) is run don't buy their products or services, simple.
Anyone who thinks running a business (big or small) is easy has clearly never done it.
History Lesson
In the 1970's at the time of the oil shocks and rampant inflation, Muldoon introduced blanket price controls which lasted for a number of years. Businesses were restricted in how they could increase prices. They could only increase prices to the extent they incurred external cost increases. They could not increase gross margins. The net effect was to put a clamp on wages as they were considered an internal cost and if a business increased it wages that cost could not be passed on and had to come out of profit margins. Businesses were allowed to reduce margins but not increase margins.
http://nzetc.victoria.ac.nz/tm/scholarly/tei-WH2Econ-c12-3.html
http://www.huffingtonpost.co.uk/2013/11/23/rupert-murdoch-wendi-deng-tony-blair_n_4330756.html
Both sleeping with the enemy?
'Wendi Deng was a Chinese spy': Eccentric Australian mogul makes bizarre claim on TV about Rupert Murdoch's wife
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.