The full pdf version of the Weekly Overview is contained here.
World Outlook Slightly Better
Thursday January 17th 2013
In this week’s lead article I take a look at how the world is looking like a less dangerous place at the moment. But because money printing is playing a role in the rise in sentiment it would be wrong to conclude that there is a normal cyclical upturn underway. In fact as this year progresses talk will increasingly turn to how to withdraw the huge monetary injections undertaken by central banks. But for now a positive ball is rolling in some parts of the world – which brings one to New Zealand’s rolling investment ball – housing.
This week we round off last week’s discussion about expats with some comments received during the week plus an invitation. If you are an expat reading this and interested in offering your services while offshore to an NZ business wanting to effectively utilise the knowledge and connections you have then email me and we’ll talk. firstname.lastname@example.org Equally if you are an NZ business looking to access an expat to see how they can assist you then also email me.
This week we take a look at one of the special factors which contributes to less than optimal growth in New Zealand’s economy – the unwillingness on the part of many employers to hire skilled and highly motivated expats. This past month has seen an intriguing LinkedIn discussion of the disappointment many expats have felt at employer attitudes back in NZ. I discuss the issue in this week’s Overview and have prepared a paper available here. http://tonyalexander.co.nz/wp-content/uploads/2012/11/Expathiring.pdf
Over the past week there has been a marginal lessening of worries about Greece and the US fiscal deficit situation. So investors have bought risky assets and the Kiwi dollar is back above US 82 cents. In the FX section we look at why the NZD is high and is likely to stay that way.
The central global themes currently are better than expected data in China and the United States but worries about the US budget deficit, Japan shrinking 0.9% in the September quarter with political dysfunction, and Europe facing increasing social unrest and deepening short, medium, and long term economic woe.
This week I have been busy with many things so have confined my headline article to just a run-through of my main themes which include a high and rising NZD, rising house prices, labour market tightening from mid-2013, flat interest rates and NZ’s growth constraint being lack of connectivity and our Kiwi business culture rather than institutions, savings and tax rates.
Structural worries offshore, low inflation at home.
Friday October 19th 2012
This past week I have been on the road giving talks to audiences in Dublin, Paris, London and tomorrow Hamburg so I’ve not had much time for placing content in this week’s Overview. I’ve not carved off separate sections into pdfs this week either. In the introductory section I give an opinion about many problems persisting overseas but it should be noted for that for the moment US data have been good and progress is being made on European debt issues – hence the strength in sharemarkets and in the NZ dollar in spite of the much lower than expected NZ inflation number.