Here are the key things you need to know before you leave work today.
Firstly, the US Fed reduced its stimulus program for a second time, and reconfirmed its unemployment targets.
The big story today however was the RBNZ OCR non-decision, the 23rd in a row. Governor Wheeler took aim, but did not fire. Markets expect him to pull the trigger in March though. Check out Bernard Hickey's analysis of todays move.
Those markets had priced in most of a +0.25% rise in the OCR, so there has been some backing off of prices today.
Swap rates have fallen about 4 bps or all of the amount they would need to fall to make a proper technical adjustment.
Exchange rates fell almost a cent as soon as the decision was announced, they then clawed a little of that back by mid afternoon, but then have fallen since and will probably end of the day lower.
In other news, building consent data was out today for December and it was stronger than expected. Not only were Christchurch consents strong, but Auckland ones were as well. Further, non-residential consents made a big recovery.
We also got migration data today, and net permanent arrivals continue to be strong. There are housing demand implications from this. On top of that, tourist visitor numbers were also healthy, despite our high exchange rate.
And we got confirmation today the the Reserve Bank did not intervene in the currency markets in December.
It is also probably worth noting the the Productivity Commission has turned its sights on the service sector and has issued a second Interim Report of how this [big] part of the economy can make a better contribution to improving its performance.
And finally, the latest weekly mortgage approvals data shows considerable weakness in the mortgage market, one that is still struggling to adjust to the LVR restrictions. Approval levels are down more than 11% over the past 13 weeks compared to the same period a year earlier.
1 Comments
Has anyone worked out how much money the managers of Mighty River Power have lost over the last few months?
Questions
1. Did they loose the money or did someone else loose it?
2. Are they responsible in anyway for the losses?
3. At what level of losses in shareholder value would they become responsible?
4. How much money has actually been lost?
5. 1,400,000,094 are there about this many ordinary shares? And does this include the 51% held by the government?
6. Does this mean that the managers of Might River Power have lost shareholders about $924,000,062 is that about 924 million dollars or there abouts.
I am not really trying to be funny but it is tricky to know if you don't know where to look. Which I do not.
Is this question being covered in the media. I am fascinated if all of this is approximately true that they are able to stay in their jobs including the CEO .
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