web analytics

Into Black-Scholes: where all the money went

Written By: - Date published: 11:14 am, May 2nd, 2012 - 15 comments
Categories: capitalism - Tags:

A very interesting article on the BBC – the financial formula that ruined the world.

Well, that’s a bit sensationalist, but it’s a formula that allowed intuition to be taken out of “options” trading and computers to move in.  And with the “understanding” of the maths of futures there was a move into more and more complex derivatives.

Around 1970 Professor Myron Scholes and his colleague Fischer Black worked out a formula so that if you have the right combination of a commodity and options to buy and sell that commodity you end up with a “risk-free” portfolio.

“We were like kids in a candy story in the sense that we described options everywhere, options were embedded in everything that we did in life,” said Scholes.

And so faster and faster trading of derivatives followed – by 2007 $US1 quadrillion in derivatives were being traded: 10 times the total production of goods in human history.

But with faster trading and more complex derivatives came problems.  Traders were more vulnerable to simplifications and mistakes.  And with everyone using very similar formulae, in the event of a large movement unpredicted by the formula everyone gets the same sell result…

Scholes received the Nobel prize for economics in 1997; in 1998 his hedge fund crashed.  The firm lost $4bn in 6 weeks with the Russian financial crash, but hedge funds and banks didn’t change course.  10 years later it was Lehman Brothers.

Professor Ian Stewart of Warwick Uni describes it as a morality tale:

“It’s very tempting to see the financial crisis and various things which led up to it as sort of the classic Greek tragedy of hubris begets nemesis,” he says.

“You try to fly, you fly too close to the sun, the wax holding your wings on melts and you fall down to the ground. My personal view is that … the bankers’ hubris did indeed beget nemesis. But the big problem is that it wasn’t the bankers on whom the nemesis descended – it was the rest of us.”

So we end up with the debt, bailouts and pain; and meanwhile the bankers bonuses keep rolling on in and executive salaries keep rising…

15 comments on “Into Black-Scholes: where all the money went ”

  1. The Baron 1

    A bit sensational indeed. The article makes reasonably clear that it wasn’t so much the model that ruined the world, but the way in which it was used: – for example:

    “Not all of those subsequent technologies, says Scholes, were good enough. “[Some] had assumptions that were wrong, or they used data incorrectly to calibrate their models, or people who used [the] models didn’t know how to use them.””

    In other words, it was the uses of this model are what ruined the world rather than the model itself. This is always the way in economics and finance though – you have to “lab” to test theories in, so unlike other sciences, you have to live with the consequences and errors of your experiments.

    In a way, this is the same as the great socialist experiments of the 20th century – except most of those ended with everyone starving to death rather than simply going broke; or the great NZ experiment of the 80s, where we don’t yet seem to have turned into the envy of the developed world… for all of these negative examples, there are plenty of positive ones where the economic theory has been bourne out well.

    Roll of the dice, I guess.

    • Poission 1.1

      The axiomatic assumption of BS is arbitrary eg pricing follows a geometric Brownian motion with constant drift and volatility.

      This is an incorrect assumption as it susceptible to random chance ie Black Swans.such as the CHCH event .Leemans Southern Cross etc.

      All open systems experience interference which tends to breakdown the mode locked system,this can either be from an external shock or instability from within the system.

      There is a significant distance between the mathematical physics community and the financial modelling community ,a good example is where Bob May is a co author,where the authors suggested that the “infected” banks should have been quarantined .

      http://www.nature.com/nature/journal/v469/n7330/full/nature09659.html

      • Poission 1.1.1

        here is the relevant part from Haldane and May

        Events external to the banking system, such as recessions, major wars, civil unrest or environmental catastrophes, clearly have the potential to depress the value of a bank’s assets so severely that the system fails. Although probably exacerbated by such events, including global imbalances (China as producer and saver, the United States as consumer and debtor), the
        present crisis seems more akin to self-harm caused by overexuberance within the financial sector itself. Perhaps as much as two-thirds of the spectacular growth in banks’ balance sheet over recent decades reflected increasing claims within the financial system, rather than with nonfinancial agents. One key driver of this explosive intrasystem activity came from the growth in derivative markets.

        In 2002, when Warren Buffet first expressed his view that ‘‘derivatives are financial weapons of mass destruction’’16, markets—although booming— seemed remarkably stable. Their subsequent growth, illustrated in Fig. 1, has been extraordinary, outpacing the growth in world gross domestic product (GDP) by a factor of three. In some derivatives markets, such as
        credit default swaps (CDS), growth has outpaced Moore’s Law. These developments contributed significantly towards an unprecedented influx of mathematically skilled people (quantitative analysts) into the financial/ banking industry. These people produced very sophisticated techniques (including APT), which seemingly allowed you to put a price on
        future risks, and thus to trade increasingly complex derivative contracts— bundles of assets—with risks apparently decreasing as the bundles grew.

  2. ianmac 2

    So we end up with the debt, bailouts and pain; and meanwhile the bankers bonuses keep rolling on in and executive salaries keep rising…

    Have been wondering about that. With any of the Bill English austerity measures can you point to any which would seriously affect the higher income people, apart perhaps from losing their jobs?
    Conversely what effect do the measures have on the lowest quarter of income earners?
    Someone must have worked out a definitive effect.

  3. Draco T Bastard 3

    The real problems are money and greed. Money allows the “economy” to move into delusion and greed pushes people to want more and more. Unfortunately, our economic theories are based upon these problems.

  4. Glad someone at the Standard finally starts looking at international finance.

    As we speak 84% of all trade is done by high frequency trading computers and only 16% by human traders. High frequency trading is a system not just for trading but it is a means to manipulate the market in the direction the big banks want it to go. It is also used to destroy countries such as Greece, Spain and lately my country of origine Holland.

    Without a trace the too big too fail banks including John Key’s Bank of America manipulate the stock market at their hearts content raking in billions of digital cash which have nothing, absolutely nothing to do with the main street economy which in the US for all intends and purposes has gone the way of the dodo.
    In the mean time Central banks around the world are printing money like there is no tomorrow and globally wages are stagnant causing inflation and deflation at the same time with food prices rising and the not so important stuff dropping in price causing whole sectors of production in China to collapse too.

    Here is what Max Keiser and Ellen Brown (Web of debt) have to say about the high frequency trading fraud. In the 2010 interview the percentage of high frequency trading was only about 70%.
    The software programs and derivatives algorithms by the way were developed by banks such as Merrill Lynch in the late 90s and here is a quote from John Key about his time as the manager of the Bonds and Derivatives department of Merrill Lynch:

    “I had a whole lot of people working for me who were at the cutting edge of delivering quite complex and new and innovative products. They tended to either be a new product or into a new market, usually the emerging markets, Russia, Brazil, Argentina. I wasn’t the guy sitting there dreaming it all up, but I was the guy who was responsible for those people.” Unauthorised biography July 2008 NZHerald (Eugene Bingham)

    In fact it can be argued that the Black Monday economic collapse may have been one of the first computer generated collapses and it was only four days later that patient zero Bankers trust forex trader Andrew Krieger with the aid of non other than John Key (solely responsible for the trades) attacked the NZ dollar with the first computerised Derivatives attack in history.

    • Gosman 4.1

      There is no hard evidence that John Key was working with Andrew Krieger during the late 80’s ‘attack’ on the NZ dollar. Regardless of this is the fact that Krieger took a position that the NZ dollar was overvalued and was therefore proved right. There isn’t anything wrong with this. It could be argued that Krieger in fact helped the NZ economy by lowering the NZ dollar and therefore the Export sector.

      • travellerev 4.1.1

        The shill again!

        Here is the link to my open letter to Eugene Bingham after which the NZ herald removed 5 pages from the unauthorised biography, Funnily enough all the pages pertaining to the banking career of John Key.

        Thanks Gosman for opening this door to inform more people and please people make up your own mind

        • Gosman 4.1.1.1

          Once again you have no hard evidence that he was working with Krieger, mere fantasical speculation on your part.

          You also haven’t dealt with the fact that causing the NZ dollar to devalue to a more suitable level helped NZ exporters so I’m unsure why you think this is a bad thing.

          • travellerev 4.1.1.1.1

            Interesting! It seems important to you to keep John Key and Andrew Krieger and the first (Krieger named patient Zero in a book about how we got into the derivative mire) derivatives attack on a currency, repeated in Thailand (again hitting the Kiwi’s in their wallets) 
            Krieger and John Key were connected with each other in two important newspaper articles which both quoted his boss as saying that the money was in the millions and that John Key was the sole counter part. John Key says he can’t remember whether it was buys or sells (Funny thing amnesia) and that it was in August 1088 anyway which is a lie.

            Andrew Krieger according to three different newspaper articles, all downloaded and archived in hard copy by the way, had left the Bankers trust in December 1987 and trading in June 1998 after a short spell with Soros. The only time Krieger dealt in that unknown little currency the NZ dollar was in the week after the 1987 Black Monday while both him and John Key worked for the then unregistered (They could trade but not perform other banking functions and registered in August 1988) Bankers trust.

            So we’ve got a lying John Key and a provable connection to millions of trade with Andrew Krieger who only dealt in those massive amounts of money on that fateful day.

            I wonder what a judge would say. Having said that what is of course is the real tragedy is why the MSM does not ask him about that very first derivatives attack and how he knew the product would cause the financial house of cards to collapse.

            Here is what he had to say about it on breakfast TV not so long ago.

            By the way Gossie it’s almost time to go home and thanks again for the exposure and saying there is no hard evidence doesn’t make it so just because you don’t want it to be.

            • Gosman 4.1.1.1.1.1

              From what I know the ‘attack’ on the NZ Dollar did not involve derivatives. Where is your evidence that it did?

              [Edit: It does indeed seem like it involved options trading ]

              • In 1986, [Bankers Trust] hired a young currency options trader from Salomon Brothers called Andy Krieger who had graduated from the Wharton School after studying Sanskrit and philosophy at the University of Pennsylvania. He quickly became one of the most aggressive dealers in the world, with the full sanction of Bankers. While most of the bank’s currency traders had an upper dealing limit of $50 million, Krieger’s was in the region of $700 million—around a quarter of the bank’s capital at the time. By using options, Krieger could leverage this exposure to many times that size ($100,000 of currency options would buy control of $30 million to $40 million in actual currency). In 1987 he did this to launch a speculative attack on the New Zealand dollar. If his own claims can be believed, he sold short the entire money supply of the country. In a matter of hours, the NZ dollar plunged 5 percent against the U.S. dollar. It was enough, at any rate, to draw an angry complaint from the New Zealand central bank. But with typical arrogance, Sanford later turned this on its head. “We didn’t take too big a position for Bankers Trust,” he grumbled, “but we may have taken too big a position for that market.” It was New Zealand’s fault, in other words, for being too small to cope with Bankers. (from Apocalypse roulette)
                Using the relatively new techniques afforded by options, Krieger took up a short position against the kiwi worth hundreds of millions of dollars. In fact, his sell orders were said to exceed the money supply of New Zealand. The selling pressure combined with the lack of currency in circulation caused the kiwi to drop sharply. It yo-yoed between a 3 and 5% loss while Krieger made millions for his employers. (Investopia)

                 

                • Gosman

                  You still haven’t explained why this is a bad thing. Lowering the value of the NZ dollar helped NZ exporters. It is in fact what I see many leftists argue needs to happen in NZ today.

  5. Rich 5

    Around 1970 Professor Myron Scholes and his colleague Fischer Black worked out a formula so that if you have the right combination of a commodity and options to buy and sell that commodity you end up with a “risk-free” portfolio.

    Sorry, but this is totally bogus.

    Portfolio risk and Black-Scholes are different things. If you have multiple options and underlyings, simple arithmetic gives you the risk profile – how much you gain/lose at each price. If that line’s flat, then it’s risk free (but it would typically be flat negative – you’d always make a loss).

    The Black-Scholes formula takes one number (option price) and turns it into another (implied volatility). You can run it backwards, but to get a useful answer, you’d need to predict the future volatility of the underlying commodity price. It helps traders, but it isn’t a magic formula that you just run and out comes profit.

  6. jack 6

    The Black-Sc holes formula is work wondered because these formula has some negative points . I agree for this post but my friend previous some year all of the word under the reaction .find more information related to more formula visit http://tradingcomputersonline.com/

Recent Comments

Recent Posts

  • Speech to Contact Energy event at Parliament
    It’s great to be here to celebrate Contact Energy’s new 580 million dollar geothermal power station to be built on the Tauhara field near Taupō. I would like to congratulate Contact on this project, which will see a 152 megawatt power station operating 24 hours a day, 7 days a ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Technical amendment to Medicines Act
    The Government is aware of a High Court decision today about processes to grant provisional consent to some approved medicines, and is making a technical amendment to modernise the law. The Court has said that while the Minister of Health can, under Section 23 of the Medicines Act, grant approval ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • COVID-19 fund benefits hundreds of thousands of learners
    More than 2,000 schools, kura and early learning services me ngā kōhanga reo have been funded to help more than 300,000 New Zealand children and young people affected by the COVID-19 lockdowns, Education Minister Chris Hipkins said. More than $30 million from the Urgent Response Fund has been allocated between ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Speech to the AI Summit
    Check against delivery. E ngā mana, e ngā reo, e ngā karanga maha o te wā, tēnā koutou, tēna koutou, tēna tātou katoa. Ki ngā mana whenua o Tāmaki Makaurau, Tāmaki herenga waka, nei rā aku mihi ki a koutou. Nōku te hōnore kia haere mai ki te whakanuia tēnei ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • COVID-19 milestone: 5000th vaccinator completes specialised training
    A significant COVID-19 workforce milestone has been reached, with the 5000th vaccinator completing specialised training to administer the Pfizer/BioNtech vaccine, COVID-19 Response Minister Chris Hipkins says. “A huge amount of work has been going on behind the scenes to boost numbers of trained vaccinators and this is a milestone worth celebrating,” ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Immigration Reset: Setting the scene
    TIHEI MAURI ORA Tuia te whakapono Tuia te tumanako Tuia te aroha Tuia te hunga ora Ki te hunga ora Tihei Mauri ora Ka nui te mihi ki a koutou Tena koutou, tena koutou, tena koutou katoa. Thank you for being here tonight as I outline the government’s planning to ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Australia New Zealand Leaders’ Meeting 2021
    Prime Minister Jacinda Ardern has announced that Australian Prime Minister Scott Morrison will visit New Zealand for the annual Australia-New Zealand Leaders’ Meeting on 30 and 31 May. Prime Minister Morrison, accompanied by Mrs Morrison, will arrive in Queenstown on Sunday 30 May and talks will take place on the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • International collaboration delivers new tools to help tackle agricultural emissions
    The Global Research on Agricultural Greenhouse Gases (GRA), an alliance backed by New Zealand is delivering promising new technologies such as cow vaccines and probiotics to tackle agricultural emissions, Minister of Agriculture Damien O’Connor said. Eleven research projects, funded and delivered under the alliance of 64 countries, have been recently ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Take your time and get home safe this Road Safety Week
    The Government is urging Kiwis to drive carefully and check their speed, Transport Minister Michael Wood said at the start of Road Safety Week.                 Michael Wood said despite the Government investing in safer roads, drivers still need to take care.     ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Budget boosts Carbon Neutral Government commitment
    Budget 2021 delivers $67.4 million to support the transition to a carbon neutral public sector by 2025 State Sector Decarbonisation Fund receives significant boost to support more schools, hospitals and other government organisations to replace coal boilers with clean alternatives Funding boost will also accelerate the Government’s ‘electric vehicles first’ ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Report shows progress on Homelessness Action Plan
    The Government has welcomed the release of the second progress report on the Homelessness Action Plan, showing that good progress is being made on every one of the immediate actions in the Plan. “Homelessness will not be solved overnight, but I am pleased to see that this plan is continuing ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Arts and cultural festivals get funding boost
    One of New Zealand’s oldest cultural festivals and a brand new youth festival are amongst four events to win grants to help them grow, attract new audiences, and boost local economies.  Economic and Regional Development Minister Stuart Nash has announced new support from an incubator fund launched last year to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt to rev up reductions in transport emissions
    The Government is calling for feedback on a range of potential policies to eliminate emissions in the transport sector. Transport Minister Michael Wood today released Hīkina te Kohupara – Kia mauri ora ai te iwi - Transport Emissions: Pathways to Net Zero by 2050, a Ministry of Transport report outlining ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government recognises David McPhail’s contribution to New Zealand comedy and television
    Minister for Arts, Culture and Heritage Carmel Sepuloni today pays tribute to David Alexander McPhail (11 April 1945 – 14 May 2021) – New Zealand comedian, actor, producer and writer. David McPhail ONZM QSM had a comedy career that spanned four decades, across both television and theatre.  “David’s contribution to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Support for drought-stressed regions fills a need
    An innovative iwi-led plan to help maintain water supply to a far North community battered by drought is set to get underway with support from the Government, Acting Minister for Emergency Management Kris Faafoi says.  “The impacts of climate change are not something that just our grandchildren will have to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • KiwiSaver default provider scheme improvements slash fees, boosts savings
    Hundreds of thousands of New Zealanders will be significantly better off in retirement following changes to the default KiwiSaver scheme, Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark said today. The new default provider arrangements, which will take effect once the terms of the current providers ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Industry leadership for our training system becomes reality
    Six new Workforce Development Councils formally established today will ensure people graduate with the right skills at the right time to address skill shortages, Education Minister Chris Hipkins said. Every industry in New Zealand will be covered by one of the following Workforce Development Councils: •           Hanga-Aro-Rau – Manufacturing, Engineering ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Rotorua Emergency Housing update
    The Government has announced a suite of changes to emergency housing provision in Rotorua:  Government to directly contract motels for emergency accommodation Wrap around social support services for those in emergency accommodation to be provided Grouping of cohorts like families and tamariki in particular motels separate from other groups One-stop ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Further COVID-19 vaccine and economic support for the Pacific
    New Zealand will be providing protection against COVID-19 to at least 1.2 million people in the Pacific over the coming year $120 million in Official Development Assistance has been reprioritised to support Pacific economies in 2021 Foreign Affairs Minister Hon Nanaia Mahuta and Associate Health and Foreign Affairs Minister Aupito William ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Statement on the escalation of violence in Israel, the Occupied Palestinian Territories and Gaza
    Foreign Affairs Minister Nanaia Mahuta today expressed Aotearoa New Zealand’s grave concern at the escalation of violence in Israel, the Occupied Palestinian Territories, and Gaza. “The growing death toll and the large numbers of casualties, including children, from Israeli airstrikes and Gazan rockets is unacceptable,” Nanaia Mahuta said “Senior officials met ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Trade Minister to travel to UK and EU to progress free trade agreements
    Trade and Export Growth Minister Damien O’Connor announced today he will travel to the United Kingdom and European Union next month to progress New Zealand’s respective free trade agreement negotiations. The decision to travel to Europe follows the agreement reached last week between Minister O’Connor and UK Secretary of State for ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pre-Budget speech to Business New Zealand
    Kia ora koutou katoa It’s great to be here today, at our now-regular event in anything-but-regular times. I last spoke to some of you in mid-March. That was an opportunity to reflect on an extraordinary 12 months, but also to reflect on how the future was shaping up. In what ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Te Hurihanganui growing with Nelson community celebration
    Nelson is the latest community to join the Te Hurihanganui kaupapa to drive change and address racism and bias in education, Associate Education Minister Kelvin Davis announced today. Speaking at today’s community celebration, Kelvin Davis acknowledged the eight iwi in Te Tau Ihu for supporting and leading Te Hurihanganui in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Te Hurihanganui Nelson Community Celebration 
    Te Hurihanganui Nelson Community Celebration  Victory Community Centre, Nelson   “Racism exists – we feel little and bad”. Those were the unprompted words of one student during an interview for a report produced by the Children’s Commissioner in 2018. They were also the words I used when I announced the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Child wellbeing reports highlight need for ongoing action
    The Government has released the first Annual Report for the Child and Youth Wellbeing Strategy and the second Child Poverty Related Indicators (CPRI) Report, both of which highlight improvements in the lives of children as a result of actions of the Government, while setting out the need for ongoing action.  ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Formal consultation starts on proposals for Hawera schools
    Education Minister Chris Hipkins today announced a formal consultation for the future of schooling in Hawera. "Recent engagement shows there is a lot of support for change. The preferred options are for primary schools to be extended to year 7 and 8, or for a year 7-13 high school to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • He Whenua Taurikura: New Zealand’s Hui on Countering Terrorism and Violent Extremism
    The Government is progressing another recommendation of the Royal Commission of Inquiry report into the terrorist attack on Christchurch masjidain by convening New Zealand’s first national hui on countering terrorism and violent extremism. He Whenua Taurikura, meaning ‘a land or country at peace’, will meet in Christchurch on 15 and ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Hundreds of new electric cars for state sector
    Total of 422 new electric vehicles and charging infrastructure across the state sector $5.1 million for the Department of Conservation to buy 148 electric vehicles and install charging infrastructure $1.1 million to help Kāinga Ora buy 40 electric vehicles and install charging infrastructure 11,600 tonnes of carbon emissions saved over ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Apartments give new life to former Trade Training hostel
    A building that once shaped the Māori trade training industry will now revitalise the local community of Ōtautahi and provide much needed housing for whānau Minister for Māori Development Willie Jackson announced today. The old Māori Trade Training hostel, Te Koti Te Rato, at Rehua Marae in Christchurch has been ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Opening of Te Kōti o Te Rato at Rehua Marae, Ōtautahi
    *Check with delivery* It is a great pleasure to be here with you all today. I acknowledge Ngāi Tūāhuriri and the trustees of Te Whatu Manawa Māoritanga o Rehua Trust Board. The opening of six new apartments on these grounds signifies more than an increase in much-needed housing for Ōtautahi. ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Major step to pay parity for early learning teachers
    Certificated teachers on the lowest pay in early education and care services will take another leap towards pay parity with their equivalents in kindergartens, Education Minister Chris Hipkins said in a pre-Budget announcement today. “Pay parity for education and care teachers is a manifesto commitment for Labour and is reflected ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand Wind Energy Conference
    Tēnā koutou katoa Tēnā koutou i runga i te kaupapa o te Rā No reira, tēnā koutou, tēnā koutou, tēnā tatou katoa  Thank you Grenville for the introduction and thanks to the organisers, the New Zealand Wind Energy Association, for inviting me to speak this morning. I’m delighted that you ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to New Zealand Drug Foundation 2021 Parliamentary Drug Policy Symposium
    Speech to Through the Maze: On the road to health New Zealand Drug Foundation 2021 Parliamentary Drug Policy Symposium Mōrena koutou katoa, Tēnei te mihi ki a koutou, Kua tae mai nei me ngā kete matauranga hauora, E whai hononga ai tatau katoa, Ka nui te mihi! Thank you for the opportunity ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Govt to deliver lower card fees to business
    Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses approximately $74 million each year. “Pre COVID, EFTPOS has ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government support boosts Arts and Culture sector
    Government support for the cultural sector to help it recover from the impact of COVID-19 has resulted in more cultural sector jobs predicted through to 2026, and the sector performing better than forecast. The latest forecast by economic consultancy ‘Infometrics’ reflects the impact of Government investment in keeping people in ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt takes further action against gang crime
    The Government will make it illegal for high risk people to own firearms by introducing Firearms Prohibition Orders (FPOs) that will strengthen action already taken to combat the influence of gangs and organised crime to help keep New Zealanders and their families safe, Police Minister Poto Williams and Justice Minister ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Thousands of MIQ spaces allocated to secure economic recovery
    Five hundred spaces per fortnight will be allocated in managed isolation facilities over the next 10 months, many for skilled and critical workers to support our economic recovery, COVID-19 Response Minister Chris Hipkins and Agriculture Minister Damien O’Connor say. “The Trans-Tasman bubble has freed up more rooms, allowing us to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand Sign Language Week a chance to recognise national taonga
    This week (10 – 16 May 2021) is New Zealand Sign Language Week (NZSL), a nationwide celebration of NZSL as an official language of New Zealand. “We’re recognised as a world leader for our commitment to maintaining and furthering the use of our sign language,” says Minister for Disability Issues ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Economic resilience provides more options in Budget 2021
    Securing the recovery and investing in the wellbeing of New Zealanders is the focus of Budget 2021, Grant Robertson told his audience at a pre-budget speech in Auckland this morning. "The economy has proven resilient in response to COVID-19, due to people having confidence in the Government’s health response to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pre-Budget speech to BNZ-Deloitte Auckland Breakfast Event
    Thank you for the invitation to speak to you today, and to share with you some of the Government’s thinking leading into this year’s budget. This will be my fourth time delivering the annual Budget for the Government, though the events of the past year have thrown out that calculation. ...
    BeehiveBy beehive.govt.nz
    1 week ago