As if the EU didn't have enough problems ...
Even before the euro crisis, people were worried about Europe’s pension bomb. State-funded pension obligations in 19 of the European Union nations were about five times higher than their combined gross debt, according to a study commissioned by the European Central Bank, Bloomberg reports. Their ageing populations have left them with a 30 trillion euro mind-numbing problem (yes, you read right - 30 trillion).
The taller they are ...
There is an "unhealthy correlation" between the building of skyscrapers and subsequent financial crashes, according to Barclays Capital.
The Volker Rule under fire
Forces are building against the US imposition of the 'Volker Rule'. The Volcker Rule is designed to prohibit most "prop trading" by banks, where institutions take positions for their own accounts, but Wall Street has argued that the restrictions will also hamper "market making", where a bank stands between a buyer and seller of securities. Canada and Japan both worry that markets for their securities will dry up, reports the FT. Ditto New Zealand?
Getting started
"The most important thing for a young man is to establish credit - a reputation and character."
John D Rockefeller
more below ...
| 8 am | --- 52 week -- | |||||||
| Today | yesterday | high | low | |||||
| -------- | -------- | --------- | --------- | |||||
| FX rates | NZ$1=US$ | 0.7957 | 0.7835 | 0.8822 | 0.7174 | |||
| NZ$1=AU$ | 0.7723 | 0.7693 | 0.8085 | 0.7276 | ||||
| Gold | in US$/oz | 1,639 | 1,615 | 1,895 | 1,319 | |||
| in NZ$ | 2,035 | 2,035 | 2,314 | 1,705 | ||||
| Copper | in US$/t | 7,641 | 7,503 | 10,147 | 6,785 | |||
| in NZ$ | 9,456 | 9,456 | 13,507 | 8,299 | ||||
| Crude oil | in US$/bl | 102.94 | 102.28 | 118.70 | 89.69 | |||
| in NZ$ | 128.90 | 128.90 | 149.14 | 117.26 | ||||
| US Treasuries | 30 yr bond | 3.02% | 3.06% | 4.73% | 2.88% | |||
| Dow | DJIA 30 | 12,426 | 12,467 | 12,919 | 10,402 | |||
Employment confidence slips
The Westpac McDermott Miller Employment Confidence index fell 4.6 points in the December quarter, from 104.2 to 99.6. This is the lowest level of the index since June 2009, when it stood at 96.1.
Who says crime doesn't pay?
It was once confined to the sun-baked, sleepy south of Italy but the Mafia is now that country's biggest business enterprise, with an annual turnover of NZ$225 billion, according to an authoritative report.
Big debt
NZ government gross debt (securities on issue) ended the year at NZ$65.4 billion, down from a high in October of NZ$70.9 billion which was the all time high-water mark, RBNZ data shows. It also shows that NZ public agencies are holding less, while the financial sector holds more than 50% now.
Growing appetite
China’s gold imports from Hong Kong, a proxy for overseas buying, set a record in November for the fifth consecutive month as demand from the world’s largest gold consumer continued to defy expectations, reports the FT. China’s gold imports have soared in recent months, as Chinese investors pour their savings into popular gold bars and consumers start to buy gold gifts for Chinese New Year.
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