Here's my summary of the key news overnight in 90 seconds at 9 am, including news on some election campaigns.
The long-running Australian campaign has seen very low polling for the governing Labor Party even after a 'good news' week for them. There is still a long way to go in this one, however, as the election is not until mid-September. But even though it will have less impact on us, more interesting is the rise of the anti-euro party in Germany.
The political establishment has dismissed Germany's new anti-euro party as a fear-mongering populist aberration that could implode even before a looming federal election.
But the first congress of the "Alternative for Germany" showed that the movement, launched only a few months ago by a group of renegade academics, journalists and businessmen, is striking a chord with voters and may prove an influential force come September. The Germans vote a week later than the Australians.
Back in Australia, banks have been benefiting from much lower money costs and will come under more pressure to pass on reductions, especially as they argued that high margin costs were the reason they didn't cut in full earlier. In the meantime, their bottom lines have been getting the boost.
Gold ended last week down sharply having wiped out all the gains it had posted since early 2011 and all eyes will be on the precious metal when markets open today. It closed under US$1,500/oz and silver fell to under US$26/oz. Oil and metals also fell.
The Kiwi dollar starts today at 85.8 USc, 81.8 AUc, the Japanese yen has risen a bit to 84.5, and our TWI is at 78.8
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3 Comments
John Ward at his best,
In stark contrast to that vain plea for escape, there are moves afoot from all dark corners everywhere to close down any debate about anything. It’s easy to see why this is: when that level of argument has reached the stage of Open Bank Reconciliation, the last thing any of those in power want is people actually thinking about how utterly risible it is. What we endured last week was more and more clowns juggling the truth about the past onstage, while others argued with ersatz passion that anyone putting money in a bank must accept the same risk “as everyone else” in the future.
Imagine going to pick up your car after a service, and you get there to discover it’s been sold.
“Yurrh,” says the grease-monkey, “Sorry squire – we ‘ad ter sell it, see? Went bust dint we?”
“But I gave you business…I didn’t invest in it,” you insist.
“Caveat emptor mate, caveat emptor…there is no alternative”.
Professors Lars Feld and Peter Bofinger said states in trouble must pay more for their own salvation, said arguing that there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs. “The rich must give up part of their wealth over the next ten years,” said Prof Bofinger
"states in trouble must pay more for their own salvation, said arguing that there is enough wealth in homes and private assets across the Mediterranean to cover bail-out costs. “The rich must give up part of their wealth over the next ten years,” said Prof Bofinger."
Just the sort of focus I expressed post Cyprus. Wealth will be targeted wherever it lies, for NZ that will be housing.
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