Here's my summary of the key news overnight in 90 seconds at 9 am, including news that in the US orders for durable goods rose in December for a fourth consecutive month. Meanwhile a closely watched gauge of business investment also rose. Both indicate that American manufacturing output will keep improving in early 2013. This data underpinned a rise in the US dollar this morning, a rise in the Dow, and a fall in the gold price.
The news buoyed markets internationally with the FTSE100 at its highest in five years.
In Europe a Brussels court has ruled that Iceland did not break European free trade laws on deposit guarantee schemes by refusing to compensate Dutch or British depositors after Icesave’s owner, Lansbanki, collapsed in 2008.
The judgment removes any hope either government had of pursuing the Icelandic government for interest on their respective local bail-outs. It also raises serious questions about Europe’s cross-border banking arrangements, which allow overseas lenders to “passport” into a country without being subjected to local financial regulation.
In China, there was news that Goldman Sachs is poised to sell its stake in the world's largest bank, the Industrial & Commercial Bank of China. This is the bank that recently showed an interest in gaining a New Zealand banking license.
In car news, Toyota retook the title of world's largest auto maker, beating out General Motors and Volkswagen. Toyota's 2012 global sales rose 23% to 9.75 million vehicles.
There has been a spread of talk internationally about the DCD milk tainting issue. Fonterra has accused the Labour party of making 'drastic' claims that undermine its trading position. It seems there is a European standard for the fertiliser additive and that the sample found last year came in at 100 times below that standard.
The New Zealand dollar starts today sharply lower at 83.0 USc, 79.9 AUc, with the TWI down to 74.8.
No chart with that title exists.
5 Comments
Fe Fonterra tainted milk. Where was the research and risk analysis before they introduced this chemical. Did they think that this was going to be swept under the carpet and never come out. You cant blame customers for being upset. It is their health and their money.
Smart arse and wise after the event - yes maybe. But these people are suposed to be profesional and it is their job to make sure that these things never happen. The potential costs probably significantly out weigh that of a bit of precautionary effort. Ditto PSA, Ditto Fruit fly etc, etc.
Theo said "I'm sorry. I get a little bit emotional about it. I don't like this kind of attitude," Attitude..? you don't like his attitude...? Theo said...."If you do those allegations, you better come with some evidence," ...... "What you are doing here is not just a Fonterra issue, it is a New Zealand issue. You are attacking your key sector of the country. How very UnNew Zealand of that treacherous little upstart. Theo said "The commentary from our Chinese agents says they feel comfortable with where are at." Well,. ha, they would be, by comparison now wouldn't they, I mean come on seriously the impact of malomine was a little easier to spot. Theo said...."We should not need to disclose in our whole business things we want to improve. It would get [to be] a zoo. We could not run the company." No of course not Theo, you should be fully entitled to keep a lid on any potential leech of toxins traceable in the product , after all the consumers are only drinking it , it's not like it's thier profits that could suffer. Your not related to Johhny the Finger by any chance are you Theo....?
Theo's not here to speak for himself Stephen H...so I'll say it for him..!
Ouch..! that hurts...!......... I don't like your attitude..!
it's not about being correct ,it's about being in control........peasant..!
(or words to that effect I believe)
I take it Stephen you don't subscribe to the trickle down effect...?
I'm certainly feeling something warm and steaming coming over me when Theo sets about telling me where it's at.
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