Here's my summary of the key news overnight in 90 seconds at 9 am, including news of stronger US growth.
The growth rate of the US economy in the third quarter was revised up to a 3.6% rate from 2.8%, with much of the gain attributed to businesses restocking and to an improving trade picture. Jobless rates are down too.
Meanwhile, some fast food workers staged a 24 hour strike for 'living wages' - US$15/hour (NZ$18.30).
The Dow and other stock indexes fell on the growth news, the gold price got confused, oil is unchanged, and UST benchmark 10yr yields rose to 2.85%.
Across the Atlantic, the ECB held interest rates unchanged overnight despite unveiling new forecasts for inflation to remain well below the bank's 2% target over the next two years. The Bank of England did the same.
The British Government has announced it is bringing forward its plans to raise the retirement age there - it will become 69 in the 2040s.
The Japanese government announced plans for a ¥5.5 trillion spending package (NZ$220 bln) to mitigate the expected drag on the economy from an upcoming GST increase. They need the sales tax increase to rein in their massive government deficits.
And China's central bank has stopped their financial institutions from offering services related to bitcoin and warned of risks associated with the virtual currency. Bitcoin is particularly popular in China due in part to its untraceable nature.
China has also announced it will build its own free trade network.
In Australia, Qantas has said it will cut 1,000 jobs will consider the possibility of partial sales of businesses including Jetstar and its frequent flyer loyalty program. The situation is brutal for the Aussie airline.
The NZ dollar starts today at 82.1 USc, 90.6 AUc , and the TWI is at 77.1.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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11 Comments
Watch NZD climb to AUD 95c while market believes rate rise imminent.
Then watch it drop, when realises rate rises are a mirage.
When do you think the OCR will be increased above 2.5% ?
Yep.
2020
Its not that dogma wont see it rise 25 maybe 50 points, its the carnage that that will cause and the panic drop afterwards...
Perversity in Sweden,
http://krugman.blogs.nytimes.com/2013/11/23/bubblephobia-and-monetary-p…
"The Riksbank raised rates sharply even though inflation was below target and falling, and has only partially reversed the move even though the country is now flirting with Japanese-style deflation. Why? Because it fears a housing bubble."
pretty familiar territory IMHO.
regards
DOW drops on good news.
Perverse isnt it.
Yes, utterly, so really the cheap Fed money is in the share market gambling and boosting it but is ready to jump out at a moments notice (one huge dead cat bounce, Vera Im looking at you).
Except of course the stock brokers have servers capable of microsecond trades ahead of everyone else....
Anybody with sense IMHO would bail before the carnage.
regards
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11167725
"A Meadowbank couple made $1.4 million in five years, buying a house for $587,000 and getting $2 million for it."
Another example of absurd sensationalist reporting. Looking at the headline it was immediatly apparent who the author was - someone so journalisticaly challenged she should be writing for a tabloid... oh I see, she is.
"How to make $1.4m in five years" - what about the costs of the renovation? what about how 5 years ago it was a different housing market?
Yeah, the headline should read "Credit still being given to the greater fool"
Full agree Bob....this kind of ignorant reporting is very annoying......I would hope most people would see it as very bad journalism.
The Big 4 BANKS and why self-managed-super must come
Michael West on fire again at SMH - this time on Compulsory Super - a template for Kiwisaver
No wonder people are flocking to self-managed super. The government has created a monster, a super Frankenstein's monster marauding across the national landscape, devouring people's savings at every turn.
It does not matter which way you cut it, fees for Australian (superannuation) investors are too high. The BANKS, which control three-quarters of the market, saunter away with roughly 2 per cent of the average person's savings year-in, year-out.
Fees charged to run a balanced fund by the wrap platforms - controlled by the BANKS and AMP - had averaged 1.91 per cent over the past five years. That's just the basic management fee; before any establishment fees, contribution fees, exit fees, switching fees, performance fees, financial planner fees, fee-fees and any-fee-will-do fees.
http://www.smh.com.au/business/tackling-the-critics-over-financial-serv…
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