Bernard Hickey details the key news in 90 seconds at 9am in association with BNZ, including news that Fletcher Building, New Zealand’s biggest listed company, has reported a better than expected first half profit. Its profit fell 10%, but this was better than expected by analysts. Fletcher Building is doing well from the government spending on roads, hospitals and stadiums. It’s Laminex division has also rebounded.
Meanwhile, Standard and Poor’s has issued BB credit ratings for PGG Wrightson Finance and Fisher and Paykel Finance, which is enough to get them into the extended government deposit guarantee scheme. Standard and Poor’s gave Manchester Unity Credit Union in Napier a B+ rating, which isn’t enough for the extended guarantee.
Meanwhile, British unemployment rose and the Bank of England’s monetary policy committee resolved 9-0 not to print more money. The US Federal Reserve’s minutes talked more about withdrawing stimulus and selling bonds that were bought up during the great crisis of late 2008 and early 2009. That will soak up cash and push up interest rates globally.