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Hello, I’m David Chaston with Ninety at nine, brought to you by interest.co.nz. This
is where you get everything you need to know in 90 seconds at 9 o’clock, including news
of strong house building in the US.
Today is the news for other than the Fed decision. We will have a separate report on that when
it is available after 8:30am this morning.
There were other things going on in the world, and that included American housing start data
which rose a stunning 22% in November above its October level. In fact, it is now at its
highest level in nearly six years. Residential building consent data also came in above expectations.
In China, the country’s biggest Bitcoin exchange stopped taking deposits in the Chinese
currency, sending the price of Bitcoins tumbling in one of its biggest markets globally. There
is even talk of 'panic selling'.
Going the other way, average prices of new homes in 70 Chinese cities rose to another
fresh high. Demand remains strong despite the government's efforts to cool the market.
In Japan they reported their biggest November trade deficit on record as imports climbed
more than 20% from a year earlier, because consumers are buying ahead of a sales-tax
increase next April. The Bank of Japan is also talking about doing even more bond buying
(QE).
In Australia, the Government there has announced a AU$100 mln package to create jobs for Holden
workers, but also announced it will end so-called corporate welfare and resist corporate rent-seeking.
And finally, the size of China's aluminium over-capacity has become apparent overnight
with some amazing figures announced. Even with 20% of its existing industry idle, it
is adding major new capacity, and taking out relatively little. The world-wide aluminium
industry is facing a very bleak future and prices will plummet.
All the major commodities and financial instruments are pretty much marking time ahead of the
Fed announcement.
The NZ dollar starts today at 82.2 USc, 92.6 AUc, and the TWI is unchanged at 77.5.
I’m David Chaston, and that was 90 at nine, brought to you by interest.co.nz.