Every weekday morning just after 6.50 am I talk with Marcus Lush on Radio Live about the latest news in business, markets, economics and personal finance.
I usually send through suggestions the night before or earlier in the morning.
Sometimes we veer off into other areas or pick up on things that happen overnight.
But here's my suggestions as of 6.15 am this morning. I'll update later with a link to the audio. Here's the link.
Marcus,
1. Housing market activity improved gradually in August, but prices are trending sideways in most places except for the most central parts of Auckland and Christchurch.
Wellington prices are falling. See our report here on the latest from REINZ and QV.
2. Finance Minister Bill English is now getting a bit worried about the slowing global economy and the risks of a European financial markets meltdown.
He said yesterday that risks are building for New Zealand’s economy as the sovereign debt crisis in Europe worsens, with stronger than expected domestic economic growth in the short-term at risk.
Bigger than expected economic challenges in Australia could mean demand for New Zealand exports will come off, while jitters in global financial markets were a risk for the government and banks here due to their reliance on access to international funding lines, English said. See Alex Tarrant's article here.
3. Here's a billion dollars wasted. Most of it will have been borrowed and much of that offshore. NZ Lotteries made sales of NZ$926 million last financial year and profits of NZ$183.3 million. Just NZ$500 million was paid out in prizes, which meant there were costs of NZ$243 million. It seems to be a recession proof monopoly. See more here at Stuff.
4. Here's another great lark. This time it's for lawyers, accountants and consultants. The split of Telecom will cost NZ$150 million. A shareholder booklet on the demerger of Telecom and its Chorus network business put restructuring costs at between $85 million and $120 million, including fees for lawyers, accountants, corporate advisers and communications. A further $20 million to $30 million may be spent on separating the IT systems. See more here from BusinessDesk,
cheers
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(Updated with link to audio)
16 Comments
Bernard, can you post a list of the people on the board of Lotto? Its ok Bernard did a quick google.
http://www.nzlotteries.co.nz/wps/wcm/myconnect/lotteries2/nzlotteries/G…
Judy Kirk was National party President, others ring a bell from my National party day's, it was common knowledge that the Lotto board was for party hacks and then there were the other boards like Landcorp, NZ post, Kiwi rail, most of these are now taken by retiring Mp's that dont get posted to an Embassy as Ambassador.
Jeez AJ....ya gotta have some pork in the pot or the system don't work...that's what directorships are all about...that's what taxpayer dosh is for...we can't have failed and old pollies left to fend for themselves and live on the pension....the whole PPP, special committees and working groups and SOEs are all about..... providing for the old party farts.
So Wally it's official , we live in a-
Kleptocracy, alternatively cleptocracy or kleptarchy, from Greek: κλέπτης (thief) and κράτος (rule), is a term applied to a government subject to control fraud that takes advantage of governmental corruption to extend the personal wealth and political power of government officials and the ruling class(collectively, kleptocrats), via the embezzlement of state funds at the expense of the wider population, sometimes without even the pretense of honest service. The term means "rule by thieves". Not an official form of government such as a democracy, republic, monarchy, or theocracy; a kleptocracy is rather a pejorative for a government perceived to have a particularly severe and systemic problem with the selfish misappropriation of public funds by those in power.
Effects
The effects of a kleptocratic regime or government on a nation are typically adverse in regards to the faring of the state's economy, political affairs and civil rights. Kleptocracy in government often vitiates prospects of foreign investment and drastically weakens the domestic market and cross-border trade. As the kleptocracy normally embezzles money from its citizens by misusing funds derived from tax payments, or money laundering schemes, a kleptocratically structured political system tends to degrade nearly everyone's quality of life.
In addition, the money that kleptocrats steal is often taken from funds that were earmarked for public amenities, such as the building of hospitals, schools, roads, parks and the like - which has further adverse effects on the quality of life of the citizens living under a kleptocracy.[2] The quasi-oligarchy that results from a kleptocratic elite also subverts democracy (or any other political format the state is ostensibly under).[3]
Mohammed el-Arian of Pimco is infinitely more consistent than his partner Bill Gross. He told Bloomberg that Europe is “on the verge of a full-blown financial system crisis”.
Dutch Finance Minister Jan Kees de Jager told Dutch financial news show “RTL Z” earlier today that his ministry was “prepared or preparing for all conceivable scenarios and even the almost inconceivable scenarios.”
The staid voice of JP Morgan opined that “the EU crisis is about to reach its climax..this is the endgame for EMU”.
US Fed boss Tim Geithner abruptly cancelled all other plans yesterday and flew to Poland in readiness for an EU Finance Minister’s summit this coming Friday. Given he’d only just got back from Marseilles, it seems obvious that Geithner knows it’s now or never: he wasn’t scheduled to join the Summit. In fact, his attendance is unprecedented.
Sergio Marchionne, the CEO of Italian carmaker Fiat, told reporters in Frankfurt that the eurozone banking system was “going off the rails”.
anyone caught up with denninger today ?
"there were costs of NZ$243 million"...all above board we assure you...there was the advertising to spin the dream and the awful admin costs with the personal vehicles and expense cards and hotel accommodation and drinkies and entertainment and clothing allowances and insurances and oh shit the list is endless....did I leave out the payments to the directors...silly me.
Perhaps we can add the sideline of nepotism to the kleptocracy.
I see Bill English is to be probed by Commerce Commission about
dodgy appointment of brother Merv to some Health position.....hmmmm
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=107…
Can we have some perspective, please?
Of the NZ$243 million not paid out in prizes, how much of that ended up going back to the ocommunity in the form of lottery commission grants? From Stuff:
New Zealand Lotteries has raised $3 billion for community funds over the past 24 years, including more than $8 million for the Christchurch earthquake.
Organisations to benefit from Lotteries included Age Concern, St John, Barnardos, Plunket, Women's Refuges and Cancer Societies, as well as major institutions such as Te Papa and the Zealandia wildlife sanctuary.
$3 billion is a lot but over 24 years is $125 million pa. All allocated without political fear or favour by amongst others Judy Kirk, ONZM:
Judy Kirk, ONZM, was appointed Chair of the NZ Lotteries board in May 2009. She is an experienced director with a wide knowledge of fundraising and business. She was recently appointed a director of Metservice NZ.
Mrs Kirk previously chaired the New Zealand Lottery Grants Board national welfare committee and the Rotorua regional lottery distribution committee for five years.
She also served as President of the New Zealand National Party for seven years.
And how much was spent on actual weekly air time in a prime time Saturday night spot? And on advertsing?
I think when you examine these costs there's not going to be a lot of "fat" to trim off.
So out with it, are you suggesting it should be privatised for greater efficiency or simply stopped?
Link to the audio is here: http://www.radiolive.co.nz/Housing-is-up-and-is-Lotto-a-waste-of-money/…
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