Here's my summary of the key news overnight in 90 seconds at 9 am, including news that the Americans have come back to work in a positive mood.
And we start in a similar way with the globaldairytrade auction recording strong gains, up 3.1% on the previous auction. More details here »
The Dow has reached its highest level in more than five years (October 2007), touching 14,050 soon after opening and holding the gains in midday trading. Euro stocks rose as well.
Driving the sentiment were gains in German investor confidence and expectations of major M&A activity between big office-supply store chains. Google topped US$800/share for the first time. Gold however has fallen back to close to US$1,600/oz.
On the other hand, the British currency is under pressure on swirling rumours it is about to lose its AAA credit rating from S&P. Against the NZ dollar, it is now at a new record post-float low.
The OECD said the economies of its 34 members shrank by 0.2% in Q4 last year, dragged down by the EU.
In the US, a new attempt by two bi-partisan ex-senators is underway to solve their latest budget problems. They have updated their plan to reduce US government deficit spending by US$2.4 trillion over 10 years through a combination of spending cuts, a healthcare overhaul and major tax reform. These two have credibility although their first attempt failed.
US Federal Reserve officials are starting to worry about a backlash from paying billions of dollars to commercial banks when the time comes to raise interest rates. The growth of the Fed’s balance sheet means it could pay between US$50 and $75 bln a year in interest for holding those additional bank reserves it has imposed, at the same time as it makes losses and has to stop sending money to the US Treasury. Could be a bad look.
There has been a blow to the proponents of PPPs. In Brisbane, the Airport Link project has collapsed and it is likely private parties will shy away from similar arrangements given their experience here. It was placed into administration yesterday just seven months after the road opened. Not enough cars are using the road to enable it to repay debts. The Airport Link collapse is the latest big Aussie toll road to have failed to meet the traffic forecasts underpinning the decision to build them.
And finally, there has been a daring diamond heist in Brussels. A well organised gang dressed as police drove on to the tarmac and took NZ$60 million in stones right as they were being loaded. No-one has been arrested yet.
The kiwi dollar is up marginally again this morning against the US dollar at 84.7 USc, but unchanged at 82.0 AUc, and the TWI is at 77.0.
No chart with that title exists.
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The Dow has reached its highest level in more than five years (October 2007), touching 14,050 soon after opening and holding the gains in midday trading. Euro stocks rose as well.
Driving the sentiment were gains in German investor confidence and expectations of major M&A activity between big office-supply store chains. Google topped US$800/share for the first time. Gold however has fallen back to close to US$1,600/oz.
Silly me - I am thinking the Federal Reserve's net $46.59 billion liquidity injection, last Wednesday, found it's way into the derivative portion of the market indices.
I was doing just that - luxuriating in the faux wealth of a higher NZD against other offerings, until I noticed this Bloomberg report: :
The New Zealand dollar fell against its 16 major peers after reports that China has destroyed some milk powder imported from the South Pacific nation.
The so-called kiwi dropped versus the U.S. dollar and yen after Beijing News reported China’s quarantine administration destroyed milk powder for three different brands, citing the government agency. The currency pared losses after Auckland- based Fonterra Cooperative Group Ltd. said none of its products were destroyed
A woman has been taken into hospital after eating horse meat burgers from tesco
Her condition is said to be stable
So they have found a Horse burger in tesco.
What's next, My Little Pony?
Not entirely sure how Tesco are going to get over this hurdle.
Waitress in Tesco asked if I wanted anything on my Burger.
So I had a $5 each way !
Tesco Quarter Pounders: The affordable way to buy your daughter the
pony that she's always wanted!
Had some burgers from tesco for my tea last night....
I still have a bit between my teeth
Unused HMV vouchers are now being accepted at Tesco.
Just tell them HMV means 'Horse Meat Voucher'
Tesco are now testing all their vegetarian burgers for traces of unicorn
Anyone want a burger from Tesco? Yay or neigh?
"I've just checked the Tesco burgers in my freezer...AND THEY'RE OFF"
I'm so hungry, I could eat a horse....."
I guess Tesco just listened.
Tesco now forced to deny presence of zebra in burgers, as shoppers
confuse barcodes for serving suggestions.
A cow walks into a bar. Barman says 'why the long face?'
Cow says 'Illegal ingredients, coming over here stealing our jobs!'
I hear the smaller version of those Tesco burgers make great horse d'oeuvres.
These Tesco burger jokes are going on a bit. Talk about flogging a
dead.. NO! NO NO NO!
Said to the Mrs these tesco burgers given me terrible trots
To beef or not to beef.
That is equestrian
Fella sees a sign outside a London Butchers "Chicken Sausages"
Say's to the Butcher "these all Chicken?"
"Na there's a bit of horse in there, Guvner"
"How much Horse?"
"arf and arf, Guvner"
"so it's 50% chicken and 50% horse"
"That's right Gunvner, one chicken and one horse"
US Federal Reserve officials are starting to worry about a backlash from paying billions of dollars to commercial banks when the time comes to raise interest rates. The growth of the Fed’s balance sheet means it could pay between US$50 and $75 bln a year in interest for holding those additional bank reserves it has imposed, at the same time as it makes losses and has to stop sending money to the US Treasury. Could be a bad look.
Too bad the Fed cannot wait for the ink to dry before it monetises the most recent US Treasury debt offering - I guess the lure of the current positive carry regime attracts internal employee bonus payments. Read ZH article
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