What BNB Told The Market
This is Babcock and Brown’s statement to the market yesterday: the fate of the entire group, the investment bank and the 10 listed funds depends upon the optimism in this statement being full realised.
Read MoreDr Shane Oliver On Oil
The credit crunch has weakened the world economy, but not led to a global recession; but there’s a growing risk that the surging oil price will, according to the AMP’s chief strategist and economist, Dr Shane Oliver.
Read MoreHousing, Confidence Down
Figures out later today will give a hint of the impact of the slowdown on employment, but not much.
Read MoreMarkets: Oil, Inflation, Corn, US Petrol
Oil prices dropped $US4 a barrel to around $US134 a barrel, the Dow rose by just over half a per cent as blue chips held firm, but tech stocks fell and the broader market was flat.
Read MoreNZ Building Slumps Further
It’s no wonder NZ Reserve Bank governor, Allan Bollard hinted last Thursday that New Zealand’s official interest rates would be cut later this year, even though inflation was expected peak around 4.7% for the Consumer Price Measure by September.
Read MoreAsia Reacts To Oil
It’s not a reply to the weekend surge in oil prices, but China’s latest directive telling lenders to set aside more money to cut bank lending is probably the most effective move it can make, seeing it seems to be baulking at freeing up all commodity prices and won’t lift interest rates.
Read MoreUS Jobs: Behind May’s Fall
While the surge in oil prices set off a surge of concern around the world as prices jumped 16% last week, the US jobs figures for May have sent a chill through financial markets because they undermined the emerging suggestion in America that things economic were not as bad as all the forecasts were suggesting, especially those talking recession.
Read MoreDIARY: It’s The US, Again
Oil, oil and more oil will be the focus this week for local and international markets, especially in the US where there’s a strong feeling the economy is doing as badly as many consumers think, not as some of the official figures might suggest.
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