Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news from the Labour Opposition that it would introduce a 12.5% tax credit for spending on research and development if elected.
The tax break would cost NZ$160 million a year or NZ$800 million over five years. Labour has proposed paying for it by bringing farmers into the Emissions Trading Scheme by 2013, instead of the 2015 planned by National. That would generate an extra NZ$800 million in tax revenues.
See Alex Tarrant's article for more details.
Meanwhile, concerns are growing again about the European Sovereign Debt crisis after Fitch downgraded Greece's rating by three more notches to B+, putting it four notches below investment grade and well into the junk territory. Fitch said a 'voluntary maturity extension' on Greece's debt, sometimes called a 'soft restructure', would amount to a default.
Meanwhile, Standard and Poor's has warned Italy it may downgrade its credit rating because of its high debt levels. See more here at Reuters.
Elsewhere, Spain's main cities remain paralysed by sit-down protests by families and young people protesting at Spain's economic crisis and 20% plus unemployment rate. Regional election results from the weekend are due today and the ruling Socialist Party is expected to suffer heavy losses.
Meanwhile, in another sign that record low interest rates are pumping up values in riskier debt-funded assets, Jimmy Choo Shoes has been sold for over 500 million pounds to luxury brands operation called Labelux. The price was more than three times net sales.
Jimmy Choo Shoes were made famous in the Sex and City series. Carrie was a big fan of the strappy, high heeled shoes that sold for hundreds of dollars each. Jimmy Choo is profiting as the well heeled global elite spend their increasing riches on such baubles. It's a bauble bubble.
The New Zealand dollar was firm over the weekend just under 80 USc.
No chart with that title exists.
8 Comments
nice link here - "where's my taxes"- data visualization of NZ govt spending
Ridiculous. I see we have a Ministry of Environment and a Department of Conservation and climate change policy advice is incurred by the Ministry of Agriculture and Fisheries. Why would the warm homes grants and assistance be included in environment and not the Department for Building and Housing? There is also the NZ Defence Force and a Ministry of Defence. Treasury looks like a sinkhole for public funds. $4b to duplicate forecasts that every other department prepares anyway. And since when did welfare mean social development?
And the Aussies just keep on going
Ms Pickard said Shell had factored in the likelihood of a carbon price in modelling for the project.
"Obviously we'd prefer an emissions trading scheme but as the world moves forward we expect to see these sort of actions taken around the world," she said.
Commenting on the tax, the energy chief said she didn't want to see Australian projects disadvantaged.
The Prelude project is forecast to contribute more than $45 billion to gross domestic product over its 25-year life.
It will create about 1000 jobs and boost Australia's trade balance by at least $18 billion.
Netherlands-based Shell is expected to pay $12 billion in tax.
"Global stock markets fall as Spain default fears grow
Escalating fears about Europe's debt crisis hit markets around the world, as the Spanish government's battering at the hands of its voters stoked investors' doubts as to whether Madrid will be able to carry out their painful spending cuts as planned."
Seems to me the peasants in the piigs are awake at last ....end game for the banks...hello default....haircuts anyone?
"A major global push is under way to spread the message New Zealand is open for business, and tourism leaders are confident inbound tourist numbers will rebound to levels before the Christchurch earthquake, on the back of the winter sports season, the Rugby World Cup, a favourable exchange rate and extra flights from emerging affluent markets."
http://www.odt.co.nz/news/queenstown-lakes/161787/global-push-nzs-tourism-rebound
Hang on a minute mate....the word has gone round the world that touring New Zealand involves not being caught by a hoard of 'Freedom Camper Coppers" out to grab $200 a shot when you stop to have a gork at the scenery...and losing an arm or leg if you get caught when you get caught short on account of the serious lack of facilities.....
Getting caught short.................................As one who lives in an area that hosts many "freedom campers" believe that seeking to regulate ,at least as regards personal ablutions ,is a necessary thing to be doing.As with everything the offenders are few,but their offal takes away from many the beauty that our country is.What should we do,wait until NZ gets a reputation as a dump.
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