Here's my summary of the key news overnight in 90 seconds at 9 am, including news there was plenty of policymaker talking over the weekend.
At the G20 Summit is Sydney, they agreed monetary policy should remain accommodative for now in most advanced economies and pledged a coordinated push to boost growth by more than US$2 trillion over the next five years. That's an additional 2% growth.
It has been a key event for finance ministers and central bankers to push their agendas. The governor of the Bank of England has told the world's biggest banks to stop whinging about proposed new capital requirements, saying they've had it too easy for too long. He was taking aim at Goldman Sachs who warned the tougher standards might back fire - which has its own irony because Carney himself is a former Goldman Sachs banker.
The Aussies committed themselves to workplace and productivity reforms, raising flash point policy changes again.
And Bill English has said in Sydney that a potential official interest rate rise in New Zealand carries with it a currency risk and the Kiwi dollar is already over-valued.
Separately, Moody's has raised Spain's sovereign credit rating by one notch, citing progress in reforms to put the economy on a more sustainable track. Spain has made faster-than-expected progress in rebalancing the economy away from real-estate 'investment' and towards exports, they said.
Equity markets ended a strong but unspectacular week on Friday; ditto oil and gold, although the price of gold in NZ dollars is now touching NZ$1,600/oz for the first time since October last year.
The NZ dollar ended the week pretty much where it started and starts today at 82.7 USc, 92.1 AUc and the TWI is at 77.7.
If you want to catch up with all the changes on Friday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
Daily exchange rates
Select chart tabs
9 Comments
People might like to look through the World Bank's table of Exports as a perentage of GDP and see where Spain is, and see where New Zealand is.
I would tend to say that they share some things in common, so people giving careful consideration to what might happen in NZ given various scenarios might want to learn from Spain's fate, just like Christchurch might want to learn from the fate of Dunedin's stadium while there is still time.
They had a mad building phase, all into property, gone pear shaped. Ditto Ireland. So are you really saying that NZ is so different to Ireland and Spain that we cannot look at their outcomes and avoid that same fate, or we just carry on praying it wont happen until it does? Ireland's present and future population some decades (50 years?) out will be paying for the greed and stupidity of others.
Yes that seems fair.....not.
regards
Poor news for New Plymouth District Council.
The Chinese Investment Corporation, which had regularly been cited as a potential capital partner for Australia's largest milk farm, Van Diemen's Land Company, has walked away from a deal. National Australia Bank has been trying to sell a stake in the company to fund managers.
A NAB document obtained by The Australian Financial Review shows the farm, which covers 16,800 hectares in Tasmania, has a debt of $67 million.
The farm's major owner, New Zealand's New Plymouth District Council, also reported in its most recent financial accounts that the value of its shares in the controlling entity Tasman Farms reduced to $NZ135 million ($124 million) down from $NZ152.3 million in the previous year. The council said lower than expected returns in one of its funds was driven by a weak return from Tasman Farms.
http://www.theland.com.au/news/agriculture/property/general-news/dairy-…
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.