90 seconds at 9 am with BNZ: Commodities down as growth fears re-emerge; NZ$ down vs A$ after hawkish RBA comments; Pound weak; Kiwi financial hub?

90 seconds at 9 am with BNZ: Commodities down as growth fears re-emerge; NZ$ down vs A$ after hawkish RBA comments; Pound weak; Kiwi financial hub?

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that gold and oil prices fell 1-2% overnight on renewed concerns about slowing global growth and less demand for commodities.

India raised its official cash rate by 50 basis points to 7.25% to slow down inflation, raising concerns demand from the emerging powerhouses of China and India would hurt commodity prices. See more here at Bloomberg.

The Peoples Bank of China also indicated yesterday it needed to fight harder to control inflation. See more here at Bloomberg.

However, that didn't hurt dairy prices too much in Fonterra's auction overnight, where the trade weighted index of products sold fell 0.1%. See full details here.

The Dow and the S&P 500 fell slightly on these concerns about slower global growth, which helped reduce the appetite for 'riskier' currencies such as the New Zealand dollar, which dipped under 80 USc early this morning.

The Kiwi dollar also fell against the Australian dollar to 73.6 Aussie cents. This followed comments from the Reserve Bank of Australia which suggested a rate hike there to 5% in August was likely, making the Aussie dollar more attractive than the Kiwi dollar where our official cash rate is stuck at 2.5% until next year.

However, the New Zealand dollar rose vs the British pound to 48.7 pence after very weak factory output figures from Britain and more talk it will keep its interest rates very low for longer as its economy struggles under heavy debts and an austerity drive.

See more here at Bloomberg about British rates.

Meanwhile, in New Zealand, there has been a call for New Zealand to offer a tax break to fund administrators, similar to those offered in Ireland and Luxembourg. The theory is New Zealand would become a funds administration hub.

See more here at Beehive.govt.




We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.


"there has been a call for New Zealand to offer a tax break to fund administrators, similar to those offered in Ireland and Luxembourg"

Awesome idea, forget "Party Central" lets make NZ  a "Sleaze Central" just like Wall Street and London City!

Hang on, wasn't it Ireland's finance hub that drove the country over the cliff?

Yes I see they have started the rosy forecasts again about the (possible) benefits of NZ being a financial hub.

Have a look at Ireland and be a bit cautious perhaps.

Didn`t JK take his outfit to Ireland,and where is it now?

Merrills? Didn't they go broke and had to be 'aqcuired' by B of A? Come to think of it ~ where has John Key worked that hasn't gone belly up? Lain,Walker,Rudkin; Elder Finance, Bankers Trust ( maybe that one just got taken over!), Merrill Lynch  and now... Nation New Zealand!

Insane...utterly friggin insane....check out where we is at on the 'fiscal fitness index'....go figure!


They know about all the loot you've got stashed in Aussie, Wally.

NZ is ranked at # 2 , yet Canada is only 11'th , Korea 17'th , and Finland 22'nd ! ....... That's the last that I give any creedence to the Marketoracle .

I've got a luvley bunch o coconuts...........


I still got a luvely bunch o coconuts.......


I've got these coconuts...!!


COCONUTS..!!...COCONUTS...!!....two for the price of one..!


COCONUTS...coconut.....anybody..? ganet ripple.....

This is not a thread about personal endowment         :)

James Altucher who Bernard highlighted yesterday , with his 10 reasons not to own stocks .............. today claims that Apple will become the world's first $US Trillion company . A cool $ 1000 per share , triple where they are today . Eventually , Apple will reach $ 2 to 3 trillion ............

....... Don't worry about Steve Jobs , this company has massive momentun irregardless of whether he goes or stays .....

But remember guys , from yesterday ,.......  don't buy stocks , you're just not good enough at it ..... leave that to professionals , 'like James Altucher , who runs Formula Capital hedge fund .

GBH, I think the comment or reasoning is its a rigged market....so in the event of a probable melt down individual investors will be left holding shares of value considerably less than 5 nano seconds ago....

So the only way to win I suppose is think just that little bit longer term than the likes of GS etc....easier said than done....Ive bailed from shares a year ago now...right now im 5% up...ie the shares are worth on average 5%+ less today, but they were 10% down some months back....


Ren Ren , steven , the next hot thing to list on the Nasdaq ........ China's answer to Facebook , or at least , one of them ...... there are more ....... And Ren Ren is tipped to list at a multiple of double that of Facebooks " value " ....... Ignore the fact that the audit committee have bailed out of this company , quit just 24 hours before the listing .......

........ Roll Up  ,  Roll Up   folks ....... You can't lose with the internet , because unlike the 2001 tech-wreck , this time is different .

The system is gamed GBH if you didn't already realise, did you not read the article on here yesterday with an example - the dodgy trading outfits that set up office physically next door to the supercomputers doing the trading and plug directly into them so they can be first out of the gates?

Portugal agrees to a three-year 78-billion-euro bailout with the European Union and IMF - http://tvnz.co.nz/business-news/portugal-agrees-terms-bailout-4154145?re...

 "HONE : Has compared Brash to Hitler, claiming that the new ACT leader aims "to destroy the culture that is indigenous to this land". stuff!

He means the 'benefit culture'

FYI Regular petrol price hiked to record NZ$2.21.9c/ltr.

Taxes (90c/ltr) and oil company profit margins (36/c/tr) make up 59% of petrol's cost per litre

See our interactive chart here




Your access to our unique content is free - always has been. But ad revenues are under pressure so we need your direct support.

Become a supporter

Thanks, I'm already a supporter.