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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
February ended on a generally positive note.
All eyes are currently on the geo-political tensions over the Ukraine and the Crimea,
but on the economic front the news is more sanguine.
But the Americans have reduced their estimate of growth in the final quarter of 2013 to
2.4%. That was down sharply from the 4.1% rate in the third quarter and was due to weaker
consumer spending components. These make up the bulk of what goes into US GDP.
In New York, equities ended February at a record high, and bond yields ended down. The
benchmark UST 10 year finished at 2.65% having never gotten even near the 3% level some were
expecting.
Gold actually rose more than 5% to end the month at US$1,325/oz although it was softer
during last week. Oil also rose about 5% in the month, but all of that was in the first
two weeks - from then, it has been stable.
Equities rose a bit less than 4% over February with generally good results being reported.
Over the weekend, Warren Buffett's Berkshire Hathaway result was revealed and there were
profit jumps there too to new records. Despite that, his results trailed the S&P500.
In China, the official large-firm PMI came in at 50.2, only just in expansion territory
and down of the previous result. China is also widening the bands of its managed float
for its currency. A more volatile exchange rate will likely result.
In Australia, the RBA is expected to leave their cash rate on hold tomorrow at their
regular monthly review. While there are concerns about their domestic economy and looming labour
market tensions, things have been working reasonably well recently. However, that view
will be tested later in the week with new key data. December GDP figures come out on
Wednesday, which are forecast to show only modest growth. And there are growing worries
about jobs in the wake of Qantas announcing that 5,000 jobs are to be axed.
The next RBNZ review is on Thursday next week.
The NZ dollar rose steadily as last week progressed and we start today at 83.9 USc, 94.0 AUc and
the TWI is at 78.7.
I’m David Chaston and that was 90 at nine, brought to you by interest.co.nz.