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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 the
first major set piece by the new Fed boss.
This morning before the US Congress, Fed Chairman Janet Yellen pledged to maintain the Bernanke
policies by scaling back stimulus in "measured steps" and signaled that the bar is high for
a change to that plan.
As she spoke, data out on job openings and labour turnover in December showed a marginal
decline to just below 4 million.
And separately the Federal Reserve said it will vote next week on new standards for banks
operating in the United States, including a proposal for foreign banks that has been
heavily criticised by their home regulators. Next Wednesday, they will finalise rules that
require foreign banks with big American operations, like Deutsche Bank and Barclays, to put all
their subsidiaries in a single holding company. Then those intermediate holding companies
will have to meet the same capital standards as US banks. The Europeans have implied retaliation.
Staying in the US, it looks like the latest debt ceiling limit will get raised without
hassle as Republican leaders stunned some members by offering to help pass the necessary
vote without any strings attached.
Markets liked what Yellen had to say; New York equities are up 1% in mid afternoon trade.
UST benchmark 10yr bond yields are also up, now at 2.72%. Oil is essentially unchanged
although it has slipped below US$100/barrel; however gold is up strongly again and now
over US$1,290/oz.
These are signals for 'risk on'.
At home today we get the first detailed look at January retail sales with the electronic
card transaction data released this morning.
The NZ dollar has risen against the USD overnight and it starts today at 83.4 USc, 92.2 AUc
and the TWI is now up to 78.4.
I’m David Chaston, and that was 90 at nine, brought to you by interest.co.nz.