Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search


Molesworth & Featherston (Weekend) – 2nd Dec. 2005

Molesworth & Featherston - Weekend Update edition

Business and Political News
Friday, December 2 2005

In the latest edition:

Direct Link To This Week's Weekend Update Edition:


What goes up

The kiwi dollar is touching 95 cents Australian and it’s over seventy US cents again, driven by a simple rule of economics - when more people want to buy something, its price goes up. Overseas holders of cash want to buy our currency and stash their money here where they can earn interest rates well above those offered by our competitors. They believe they’re on a one-way bet: We can’t afford to allow our currency to fall because the inflationary pressure would be intolerable with price rises already outside the Policy Targets Agreement. The Reserve Bank is picked to increase interest rates again next Thursday as it tries to bring price rises back inside the three percent limit, making New Zealand bonds look even better.

Contrary to widespread claims that the economy is isn’t. We’re borrowing because we think our incomes will be good enough to pay the cash back. GDP is growing - albeit more slowly, but still growing. And detailed surveys of exporters don’t really support the widespread claims exporters are being hammered, either. Last week’s DHL Export Barometer found nearly two thirds expect their individual businesses to increase offshore sales over the next twelve months:

The DHL Barometer found two thirds of exporters expect greater profitability over the next 12 months, and their expectations have been strengthening this year.

There are risks ahead. The Ministry of Economic Development's briefing to its gaggle of incoming ministers says things will get tougher in the next couple of years - and not just for exporters.

The rapid growth of China, India and other Asian economies will force New Zealand to shift more toward the skilled end of the value chain. It will also keep pushing up the prices of fuel and raw materials, as well as transport, although as Chinese incomes rise so will its importance as a market. The Ministry says we need ‘large’ investments in transport, electricity generation, gas prospecting and electricity transmission.

Public financing and ‘wide-ranging’ regulation will be needed because competition in the infrastructure sectors is weak. It’s also making a limp call for more privatisation of the energy SOEs, calling for increased ‘private sector expertise and market disciplines’.



The Governor’s Edition of Molesworth & Featherston is smarter, it arrives midweek and covers the issues in thoughtful depth. This Christmas you can give a subscription to a mate for half price if you upgrade now with your credit card.


The Government hopes for an end to ongoing criticism over Winston Peters’ appointment as foreign minister outside the government. But fresh criticism in the EU Parliament keeps the issue alive. Page 3.


Many of our readers, contributors and the people we write about will be at the Press Gallery Christmas Party. So Molesworth & Featherston is springing sponsorship. For the white wine. You know we can’t take sides. Page 4.


Michael Cullen recruits a new press sec from TVNZ, staff at Fairfax’s suburbans are revolting and the EU is asked to add Internet sharing of music to anti-terrorism laws. Page 5.


The Weekend Update is a complimentary, condensed edition of the paid-subscription only Governor’s Edition published last Tuesday.

For the inside oil on politics and business in Wellington - and to subscribe to the Governor's edition see… Pay for a Governor's Editions subscription HERE

Direct Link To This Week's Weekend Update Edition:

© Scoop Media

Top Scoops Headlines


Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>



Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>


Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>


Get More From Scoop

Top Scoops
Search Scoop  
Powered by Vodafone
NZ independent news