Embracing emotion in the workplace
Play • 24 min
For far too long, a warped idea of professionalism has tainted the workplace, say Liz and Mollie, two friends who  encourage employees to bring their emotions to the office.
Economy Watch
Economy Watch
Interest.co.nz / Podcasts NZ, David Chaston
Bond yields make huge move up
Kia ora, Welcome to Friday's Economy Watch where we follow the economic events and trends that affect New Zealand. I'm David Chaston and this is the International edition from Interest.co.nz. Today we lead with news where the most interesting move globally has been the forced move by our Government to have the RBNZ target housing. Interest rate rises may become a self-fulfilling consequence. But first in the US, new orders for durable goods in January rose much more than in December and came in much higher than expected with a +4.5% rise year-on-year. Orders for non-defence capital goods were up an even better +6.8% suggesting boardrooms are investing again. The number of new regular jobless claims fell sharply last week to +710,000 (a 3 month low) and the new number of people on these claims is 4.8 mln, an equivalent drop. But there were +451,000 initial claims for Pandemic Unemployment Assistance. Both are still large levels but they do seem to be trending lower. However, pending home sales slipped in January from December and this was an unexpected result. And the prior month's data was revised lower. But they are still well above the levels of January 2020. The Kansas City Fed's factory survey is the latest regional survey out and that reports activity that is climbing and new order growth. But they are seeing lots of weather-related interruptions. In Texas, a string of financial defaults arising from their power crisis threatens to start a domino effect in the state, all a consequence of the rocketing up of the electricity price in that period. In Canada, weekly earnings data shows little change but is +6.4% higher than year-ago levels. This is largely the result of lower-paid jobs falling away however. In China that are celebrating "the elimination of poverty" and showering Chairman Xi with accolades for the accomplishment. China is having trouble containing its African Swine Fever pandemic. The outbreak is returning again after not really having been defeated in the first round and the emergence of a resistant strain. In Taiwan, industrial production is climbing fast, up almost +19% in January from a year ago. Retail sales growth is returning too after lagging for a while, up +3.6% on the same basis. In the UK, public transport frequency is being reduced as riders continue to shun that form of commute Wall Street has turned sharply lower today and restarting their losing streak, with the S&P500 down by -1.9% in early afternoon trade and now at its lowest point in a week. There is a tech rout underway and the rising bond yields are accentuating the downward trend. Yesterday the NZX50 Capital Index ended its session down another -1.2%. In fact, in four days, the NZ exchange has lost -3.3% and since the start of the month it is down -7.6% in pretty much a one-way slide. The UST 10yr yield is up dramatically today, up +8 bps at 1.46%. This sell-off now has global momentum, all based on rising expectations for inflation, expectations central bankers can't halt despite their attempted unison jawboning. The New Zealand Govt 10 year yield has raced up another +18 bps to be at 1.88%. Recall, it was at 1.16% at the start of the month and 1.02 at the start of the year, so the repricing has been sharp, with the largest rises in the past few days. The savage sell-off of New Zealand bonds yesterday was after the RBNZ was forced to add housing to its policy remit. Bond managers think the RBNZ will now have no option but to raise interest rates to preserve affordability. And that may have been made into a self-fulfilling consequence. The price of gold will start today down another -US$31 at US$1770/oz and falling. Oil prices are marginally firmer and are now at just over US$63.50/bbl in the US, while the international price is just over US$66/bbl. And the Kiwi dollar opens at 74.3 USc with another rise from this time yesterday. It is close to its high more than 4½ years and it has risen +33% in a year. Against the Australian dollar we are holding at 93.4 AUc. Against the euro we have slipped slightly, back at 60.8 euro cents. That means our TWI-5 is now up at 75.2 and also a 4½ year high. The bitcoin price is now at US$50,827 and +2.4% higher than this time yesterday. It did get up to US$52,076 in between but is drifting lower now. Volatility in the past 24 hours is still high at +/- 4.1%. You can find links to the articles mentioned today in our show notes. And get more news affecting the economy in New Zealand from interest.co.nz. Kia ora. I'm David Chaston. We will do this again on Monday.
6 min
NZ Everyday Investor
NZ Everyday Investor
Podcasts NZ / WorldPodcasts.com / Gorilla Voice Media
Beyond GameStop - Have the rules of the game changed? 138 / Julian McCormack
_——————_ A recent Goldman Sachs report into the US financial markets found parts of the market “appear frothy,” with “signs of unsustainable excess.” The peaks we’re seeing today, particularly among high-growth stocks and stocks with negative earnings appear to point to some kind of economic unreality. “We’re a long way up the gang plank in terms of valuation,” said Julian McCormack. “It’s a very elevated point in the history of the market” When people start using words like “froth” and “bubble,” there’s a secondary assumption that at some point, the thin membrane surrounding it will soon break, releasing everything beneath in a cloud of water droplets and hot air. To Julian, parts of the markets of today, particularly with the evangelism around tech stocks, evokes memories of the bubble in the 1920’s. People back then started out their adult lives hopping on a horse to get to work and sending a carrier pigeon home to remind their kid to turn the open fire off. Within a relatively short period they were zooming around town in cars and calling their mates on the telephone — imagine how euphoric and unstoppable people felt during this time. We all know what happened next as the Great Depression hit and people were brought back to reality, fast. Today everything is changing again. Innovation is causing constant change to the operation of our daily lives, and naturally this builds euphoria — a hype which seeps into share markets and ultimately supercharges sentiment. But is it really a bubble, or are we operating in a new kind of system, governed by rules not yet written? Interest rates are almost guaranteed not to rise, we’ve busted through any previous points of resistance in terms of all time highs in almost every sector – perhaps the punchbowl of quantitative easing has been replaced with a glass table, a rolled up twenty, and a little white bag. The state of many parts of the current market is punctuated by a massive “if.” And as much as some commentators will try to tell you they have a perfect model for what is going on, there is no clear guard rails for these unprecedented times. As Julian says, we must be wary of “the absolute impossibility of predicting outcomes in a chaotic system.” So what do we do – what’s a rational response to an irrational situation? Cash out and stuff it in the mattress? Wait it out – call for the end of the world so that hopefully the market hears you? Or diligently keep building, knowing that in the long term, you should be okay? While there’s no perfect answer, Julian reminds investors of the importance of keeping the investment fundamentals in mind. “We all must be reminding ourselves to exercise general cautionary principles, even if markets might push higher,” says Julian. ________________________________________________________________ The NZ Everyday Investor is brought to you in partnership with Hatch. Hatch, let's you become a shareholder in the world's biggest companies and funds. We're talking about Apple and Zoom, Vanguard and Blackrock. So, if you're listening in right now and have thought about investing in the US share markets, well, Hatch has given us a special offer just for you... they'll give you a $20 NZD top-up when you make an initial deposit into your Hatch account of $100NZD or more. Just go to https://hatch.as/NZEverydayInvestor to grab your top up. __________________________________________________________________ Like what you’ve heard? You can really help with the success of the NZ Everyday Investor by doing the following: 1- Tell your friends! 2- Write a review on Facebook, or your favourite podcast player 3- Help support the mission of our show on Patreon by contributing here 4- To catch the live episodes, please ensure you have subscribed to us on Youtube: 5- Sign up to our newsletter here NZ Everyday Investor is on a mission to increase financial literacy and make investing more accessible for the everyday person! Please ensure that you act independently from any of the content provided in these episodes - it should not be considered personalised financial advice for you. This means, you should either do your own research taking on board a broad range of opinions, or ideally, consult and engage an authorised financial adviser to provide guidance around your specific goals and objectives. If you would like to enquire around working with Darcy (an authorised financial adviser), you can schedule in a free 15 min conversation just click on this link _____________________________________________________________________________
49 min
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