Thursday, November 3, 2016

FOUR HEADLINES

NZL UNEMPLOYMENT RATE DOWN AGAIN ... this time to 4.9% and better than market expectations.   Interesting that over the period 1985-2016 our unemployment rate averaged 6.13%.    There are lies, damned lies and statistics ... this is a good statistic.

NZL BEST PLACE TO DO BUSINESS ... this from the World Bank.   NZL has displaced Singapore from its place as No. 1 ... a position it has held for the last decade.   Labour and the Unions are crying fowl/foul but what's new?   The more astute might detect a degree of correlation with the previous headline.

DAIRY PRICES SURGE with whole milk powder up 20% in the latest GDT auction.   This is the sixth increase in seven auctions and comes on the back of a tightening of supply.   Another 'crisis' solved (and by the market too). Labour's crisis cupboard is increasingly bare.

McCULLY/MFAT ABSOLVED OF ILLEGALITY on the Saudi sheep deal.   The A-G's report made clear it was not a lot of things that had been claimed.  "It was not corrupt, it was not a bribe and it was not a facilitation payment (as had been alleged in Parliament) ... The payments to the Saudi businessman were made as part of a legally valid contract for services and were spent with the necessary approvals" ... Lyn Provost, Auditor-General.    There are other aspects of the report that do not reflect well on the players but, for me, the bottom line is that McCully was attempting to achieve cut-through in a trade deal with the Saudi's ... a trade deal that will benefit NZL.    Sometimes to make it happen you need to think outside the square.   That's politics and politics ain't prissy.

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