Bernard Hickey details the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including news late on Friday night that employment growth in the world's largest economy was weaker than expected.
US jobs grew 39,000 in November, which was less than than the 150,000 widely expected and less than the 200,000 needed to push unemployment lower. Instead the US unemployment rate rose to 9.8%, near record highs.
Despite that, the Dow closed higher on Saturday morning our time and US bond yields fell as expectations of inflation ebbed away.
This widened the yield differential between New Zealand's higher interest rates and lower US interest rates, which made the New Zealand dollar more attractive. It rose to 76.5 USc in morning trade and has risen from 74 USc over the last week.
There was also talk that Europe would expand its bailout fund to cope with Portugal and possibly Spain. This helped stabilise global stock markets. For now at least.
Looking ahead, the Reserve Bank of New Zealand is expected to leave the Official Cash Rate on hold at 3% when it releases its quarterly Monetary Policy Statement at 9 am on Thursday.
The focus will be on the outlook and when the Reserve Bank is expecting to hike interest rates. Most expect either a March 10 or a June quarter resumption in rate hikes.
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7 Comments
I can't see the details as it's a pay to read article in todays online NBR but someone doesn't like our dear leader?
here's the headline:
Crafar on Hickey: They should have stapled his throat
Oh no..what could this mean?
Time to start shelling the Chatham Islands, i reckon..
It's a sick world when people are buying and investing on bad news. The governments and central banks around the world has truly created some twisted investment incentives.
-Moral hazard?? Noo, but we're not bailing out everyone, only the most counter productive elements of society.
"The European Central Bank has decided to calm financial markets by buying huge amounts of public debt and extending generous liquidity conditions, and is pressing European leaders to step up to the plate in turn." stuff.co
How does it go.....orchestrated littany of spin and BS......
"According to the notes on the meeting Clinton expressed America's "deep anxiety" and asked Rudd's advice on the management of China's growing economic muscle.
Rudd described himself as a "brutal realist" on China and said that while all efforts should be made to bring China into the international community, the region should be prepared to deploy force "if everything goes wrong". herald
What a laugh.....no not the fact that Rudd has both feet in his gob, we knew that was always the case........the bit where Clinton asked for advice!...haaaaaaaaarhahaha......and even funnier that Clinton would expose "deep anx" over China's growing economic muscle..........
Time to short Spain....oh what a pain.....
"Spain's troubled economy will not follow Greece and Ireland in seeking international financial aid, Finance Minister Elena Salgado says.
"No", she told Les Echos business newspaper on Monday, "because our (economic) fundamentals do not justify it."
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