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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (36831)	7/11/2008 10:37:00 AM
From: elmatador	Read Replies (1) \| Respond to of 217570

What happens to a country with record-high interest rates. New Zealand House Sales Fall 42% on Year, Prices Drop (Update1) By Tracy Withers July 11 (Bloomberg) -- Sales of New Zealand houses slumped for a fourth straight month in June as record-high interest rates curtailed demand for property. The number of homes sold dropped 42.4 percent to 4,305 from 7,474 a year earlier, according to a report from the Real Estate Institute of New Zealand Inc. e-mailed to Bloomberg News today. Sales were at the lowest level since December 1991. A cooling real estate market and rising debt levels are eroding the spending power of consumers, and may have pushed the economy into a recession. Reserve Bank Governor Alan Bollard last month said it is likely he will cut the benchmark interest rate from a record-high 8.25 percent later this year as slowing domestic demand eases pressure on inflation. ``Households are coming under financial pressure from all fronts,'' said Nick Tuffley, chief economist at ASB Bank Ltd. in Auckland. ``The Reserve Bank will continue to expect further weakness in the housing market, given that the imbalance between supply and demand remains.'' Investors are deferring decisions on buying or selling until a clearer trend emerges, the institute said. Lower prices are being accepted to complete faster sales. ``There isn't a lot of confidence in the residential property market,'' Murray Cleland, the institute's national president, said in a statement. Still, ``the market is finding its own level and there is certainly no indication of any significant slump in values.'' House Prices The median house price fell 2.2 percent from a year earlier to NZ$340,000 ($258,000). Prices declined NZ$5,000 from May. The median time it took to sell a house increased to 53 days, the highest since January 2002, from 49 days in May. Housing makes up about 80 percent of the total assets owned by New Zealand households. As values fall and high interest rates increase credit costs, householders are becoming more reluctant to borrow and spend. Household spending fell 0.4 percent in the first quarter, while the overall economy also contracted. Eight of 13 economists surveyed by Bloomberg News expect the economy also shrank in the second quarter, pushing New Zealand into the first recession in 10 year. A second report today showed New Zealanders' average net wealth posted the biggest fall in almost 10 years in the first quarter as house prices and stocks declined while rising interest rates increased debt. Stocks, Pensions Net wealth, which includes the value of homes, investments and bank deposits less debt, dropped 1.6 percent in the first quarter to NZ$369,250, according to the report from Auckland- based financial adviser Spicers. The value of stocks and pension funds fell 1.8 percent while debt increased 2.2 percent, Spicers said in the report e-mailed to Bloomberg News. Falling net wealth adds to signs household spending may slow, curbing economic growth. Consumer confidence fell to a 17- year low in the first quarter and the economy contracted 0.3 percent. ``We expect the value of housing assets to remain under pressure for the foreseeable future,'' Spicers said. ``Houses are taking longer to sell, prices continue to come under pressure and household budgets are straining.'' In Australia, net wealth of a median family was A$326,000 ($313,000) in 2006, according to a government-commissioned report published this month. To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.

To: TobagoJack who wrote (36831)	7/11/2008 11:38:53 AM
From: carranza2	Read Replies (2) \| Respond to of 217570

Added DGP. Awash in a lovely sea of gold and green.

To: TobagoJack who wrote (36831)	7/11/2008 4:32:12 PM
From: elmatador	Read Replies (1) \| Respond to of 217570

Iraq toughens stance on U.S. troop withdrawal www.chinaview.cn 2008-07-10 00:59:59 Print BEIJING, July 9 (Xinhua) -- Iraq's stance in negotiations with the U.S. over the country's security has been getting tougher, a trend obviously seen when a Iraqi security officer demanded a definite deadline of U.S. troops' withdrawal. Iraq will reject any security pact with the United States unless a specific date for withdrawal of U.S.-led troops is set, Iraqi national security advisor Muwafaq al-Rubaie said in Najaf on Tuesday. "Our stance in the negotiations with the Americans will be strong. We will not sign any memorandum of understanding without specifying a date for the withdrawal of foreign troops from Iraq," al-Rubaie told reporters in the Shi'ite holy city. As security conditions in Iraq improve, the Iraqi government's stance in negotiations with the U.S. have become tougher. al-Rubaie's remarks were the toughest since the beginning of negotiations on a security pact between the two countries in March, analysts say. Iraqi Prime Minister Nuri al-Maliki publicly announced Monday that his country was seeking a timeline for the withdrawal of U.S. troops. "The current trend is to reach either a memorandum of understanding for the departure of the troops, or a memorandum of understanding for setting a timetable for their withdrawal," al-Maliki said during a meeting with a group of Arab ambassadors in Abu Dhabi, capital of the United Arab Emirates, Baghdad and Washington are currently holding talks aimed at reaching a deal on continued U.S. military presence in Iraq after a UN mandate expires in December. The security pact, also known as Status of Forces Agreement (SOFA), has to be signed by the end of July according to a declaration of principles agreed upon by U.S. President George W. Bush and al-Maliki last November. Some observers point out that the Iraqi government has hardened its position in recent days because it thinks the Bush administration is eager to sign an agreement before the November elections, which could give Iraq a chance to win a better deal. The Bush administration has repeatedly rejected calls for any specific withdrawal timetable. The White House responded to al-Maliki's comments Monday by saying the talks were aimed at reaching an agreement on a framework for future U.S.-Iraqi relations rather than a "hard date" for U.S. withdrawal from Iraq. The U.S. State Department also rejected Iraq's demand to set a timetable for a pullout, emphasizing that the withdrawal of its troops will be based on ground conditions. "The U.S. government and the government of Iraq are in agreement that we, the U.S. government, we want to withdraw, we will withdraw. However, that decision will be conditions-based," State Department spokesman Gonzalo Gallegos said. "We're looking at conditions, not calendars here," he said. Apart from the difference of opinion on a specific withdrawal timetable, controversy in either country about the contents of a likely agreement has further complicated the ongoing talks. Iraq's Deputy Parliament Speaker Khalid al-Attiya said any deal reached by the Iraqi government must be approved by deputies and the document will probably be rejected if American troops are immune from Iraqi law. According to the Iraqi constitution, any national agreement needs to be approved by a two-thirds majority in parliament, he pointed out. However, it seems unacceptable to the U.S. to let its soldiers be subject to Iraqi law, analysts say. Washington has SOFA pacts with many countries, which exempt U.S. troops from trial or prison terms abroad. Meanwhile, control of military operations and airspace, as well as detention of prisoners are all bones of contention between the two nations.