Here's our summary of key overnight news in 90 seconds at 9 am including news China plans to establish more private banks to increase financial support for small firms.
Reuters reports the Chinese Cabinet plans to promote trials to initiate the establishment of private banks responsible for their own risks, as well as financial leasing companies and consumer finance companies and other financial institutions. Maybe there’ll even be a role for the Haier owned Fisher & Paykel Finance?
The Government also says it’ll support the establishment of more village banks and credit companies.
China’s massive state owned banks have channelled most of their borrowing to state firms and local government. China Minsheng Banking Corp is the only private bank among the country's 10 biggest commercial lenders.
Reuters says under the Government's guidelines banks will be encouraged to widen credit securitisation to help channel more credit to small firms and qualified banks will be allowed to issue special bonds and use the proceeds to support smaller firms. Banks will also be encouraged to tolerate higher non-performing loans when they lend to small firms.
Small and medium-sized enterprises comprise 60% of Chinese GDP and 75% of new jobs, but are struggling with weaker global demand and tight credit supply.
Meanwhile, the US government’s budget deficit for the 10 months to July fell 38% from the same period of last year. The deficit narrowed to US$607.4 billion from US$973.8 billion.
For the year to September 30, the Obama administration projects the deficit will shrink to US$759 billion, the smallest one in five years. More tax and payments to the Treasury from Fannie Mae and Freddie Mac as the US housing market improves are helping.
Now for some news on the virtual currency Bitcoin.
New York’s top banking regulator has subpoenaed 22 digital-currency companies as it moves to decide whether new regulations should be introduced to oversee the emerging industry, Bloomberg reports.
Describing virtual currencies as a virtual Wild West for narco-traffickers and other criminals, New York’s Department of Financial Services said it was considering whether it should issue new regulatory guidelines specific to virtual currencies. The subpoenas went to service providers as well as investors in the sector.
The Trade Weighted Index is at 75.25 this morning.
No chart with that title exists.
26 Comments
Elon Musk , the South African inventor who brought PAYPAL and TESLA motors to an unbelieving world , has announced his latest plan , a $US 10 billion hyperloop mass transportation system .... tubes carry passengers on a magnetic propelled transitway , solar powered , at sppeds over 1000 kph ....
... roughly modelled on the Farmers Department stores old air forced tube system for dockets and change , he expects to have his vision become a reality within 10 years ...
And for those septics ( looking atyou , Bernard & steven ) who deny any significant innovations in the past 50 years , this is a new transportation system .... not just speeding up a train , or turbo-charging a plane , Musk is developing a technology which smells completely different ....
... the Gummster reckons Kiwis should leap onto this technology .... and build a trial run between Taihape and Bulls ... we need all the old 44 gallon drums we can lay hands on , and someone who's pretty nippy on a welder .....
I don't doubt the technolgy Gummy, what I doubt is the maintenance. Anything mechanical that relies on human input to keep is going is always at risk, do you want to be travelling at 1000 km/h when something goes wrong? One of the first thing a new CEO does is look at ways to cut costs, maintenance is an easy target. Heck I had inside information on MRP and they deferred a lot of maintenance to make the books look good. I have also heard that Marsden Point isn't really a place you want to be working.....
If the magnetic repulsion system fails at 1000 kmh the sand blaster will be used to scrape the passengers up off the sides! what of them isnt spread across the scenery of course.
Resistance also increases (at a square? cube?) as you go faster, hence the energy use.
Get energy to it? of course we could use wireless technology to transmit power, but that would be like putting humans in a microwave....yes sounds a great idea, fried then pasted.......
I agree we'll be on trains, but I think they'll look like todays ones plus some fancier looking modren designs on the outside.
regards
Very similar to airplanes Scarfie. We get on them regularly and somewhere each day that was a seriously bad decision for somebody. But mostly we are safe enough to keep doing it.
There is a lot of trust in society, and most of the time people including CEOs and airplane maintainance people are doing their jobs with care and responsibility.
The tube and planes, in their safety issues seem similar to me, and maybe the tube might be better.
Well interesting you bring aircraft into this as having working on them it is a field I am familiar with. I have friends still in the profession. It is one area where design is actually an issue. I wouldn't fly the on the latest aircraft and will avoid Airbus altogether. In a drive for a greater share of ever diminishing returns the industry has been compromised.
Mind you, you wouldn't catch me on a horse either :-P
Thankyou Gareth , yes , you've given us alot to cogitate upon , and to mull over ....
.... reckon we could construct a hyperdrive loop around Christchurch , Hugh ? ..
....the first folk we get to test run it will be the silly buggers who came up with the Cardboard Cathedral idea ....
Actually, apart from the solar-power bit, this is old hat. I remember having those discussions around the dinner-table in the '60's, and building a working model. This was admittedly with linear brushes, and wheeled - how much energy to run the electro - I presume it's electro - magnets in this one? How much build energy in the tubes? How much entropic heat energy on tha air displacement? Science beats wide-eyed believers, every time.
But 'different'? No, it ain't that. 1840 - 1905.......... Surprised some folk championing it can't remember.........
http://en.wikipedia.org/wiki/Linear_motor
Meanwhile, the US government’s budget deficit for the 10 months to July fell 38% from the same period of last year. The deficit narrowed to US$607.4 billion from US$973.8 billion.
For the year to September 30, the Obama administration projects the deficit will shrink to US$759 billion, the smallest one in five years. More tax and payments to the Treasury from Fannie Mae and Freddie Mac as the US housing market improves are helping.
US T10's yield rose 4 bps assuming the Fed cannot buy that which is not available.
The ODT reports David Shearer saying a strategy for regional development would be one of the first things a Labour government would look at.
"In Dunedin yesterday as part of a tour marketing the party's power policy, Mr Shearer said there needed to be political action to stem the tide of Dunedin job losses, mostly the result of the streamlining or centralising of government services."
http://www.odt.co.nz/news/dunedin/268497/shearer-says-regional-push-lab…
How old is David Shearer?
Do any of these jokers ever do any research?
Do they ever look over their shoulders
Do they ever check with the elderhood
Regional Development was the catchphrase of the 1970's and 1980's
Even huge Regional Development subsidies
Tried it
Done it
Didnt work
Insightful comments , my question is how does Labour plan to pay for all of this . It can only be done by TAX AND SPEND .
I can tell you that if I have to pay any more taxes to fund Labours plans , I am going to stop working.
I will even consider moving to Fiji as a Tax exile .
Right now I bill clients and charge GST , and then pay staff who have done the work and pay the PAYE .
Roughly 40 cents of evey dollar that comes in the door here goes out in these 2 Taxes.
And , that does not include the folowing taxes which we also pay Rates , fuel levies ,RUC , numerous Licences , ACC levies , Company Tax, Kiwisaver employer contributions , etc.
And I carry all the risks of being in business , its not worth it if we are going to pay yet more in taxes
Tax- and - spend- Socialism only works until the Government runs out of other peoples money to spend
The vote buying frenzy starts in earnest.
Interesting thing is cities super-scale, so its a benefit to have major cities grow, here is yet another Pollie who wans to reverse that. Par for the course, dont want to know about anything that threatens BAU and getting elected, rinse and repeat every 3 years. When it blows up of course they will claim no one saw it coming, just like last time and the time before.
regards
Labour doesn't get regional development in the same same as it doesn't get affordable housing.
Proper regional development is not some idea or process that comes from Wellington, it is the regions themselves reconfiguring the local publics services to better serve local workers, businesses and the community in general.
Labour mangles the language in the same way regarding affordable housing. They say they will provide affordable housing when what they mean is that developers will have to allocate a certain proportion of new housing to the 'affordable' category. They do not care if the average house prices become more or less affordable, as long as they can point to some 'afordable' housing.
Headline - US budget narrows
The art of mis-direction
The US Federal Budget Balance
For the month of May 2013 was a deficit of -$138 bn
For the month of June 2013 was a surplus of +$116 bn
For the month of July 2013 was a deficit of -$98 bn
From June to July is a deterioration of -$214 billion
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