Worldwide Financial Group Cornerstone [Australia Could Be Next]

World Business (‘Cornerstone Worldwide’) Antipodean commodity boom hasn’t insulated Australia and New Zealand from contagion
By: Richard Drake
 
Aug. 26, 2008 - PRLog -- A note to investors at Cornerstone Worldwide has reportedly stated that the world's financial tsunami has blown through Australia and New Zealand recently creating concerns of contagion across the Pacific region.

The Cornerstone Worldwide note apparently mentioned that the punishment suffered by financial shares in Sydney this week came after investor flight forced National Australia Bank (NAB) to slash a £400m bond sale by two thirds.

The retreat comes days after the Melbourne lender shocked the markets by announcing a 90pc write-down on its £550m holdings of US mortgage debt, an admission that it AAA-rated securities are virtually worthless.

Last week, New Zealand's central bank cut interest rates last week on concerns that the economy may have started edging toward a recession. Housing starts slumped 20pc in June to the lowest since 1986. Cornerstone Worldwide’s investor note speculated that the commodity boom in its mining sector has “taken some of the sting” out of the downturn but the government had still been unable to generate a current account surplus despite increasing revenues.

Shifting focus to the Antipodean currencies, the noted allegedly stresses that both the Australian and New Zealand dollars have fallen hard in recent days and now appear to be breaking down through key technical support against major currencies, including the US dollar.
End
Source:Richard Drake
Email:Contact Author
Zip:E145LB
Tags:Cornerstone Worldwide, Cornerstone, Worldwide
Industry:Financial
Location:London City - London, Greater - England
weekly-online PRs
Trending News
Most Viewed
Top Daily News



Like PRLog?
9K2K1K
Click to Share