Here's my summary of the key news overnight in 90 seconds at 9 am, including news of good American economic data driving markets.
The Dow hit a new record high of 15,587 at 2am this morning. It's falling back in late trade, but it may still close at a record level. The S&P500 also hit a new intra-day record.
US oil prices spiked higher overnight, and given some major infrastructure changes in the US they are now almost equivalent to international prices.
They were up US$2 overnight to US$108/barrel, still well below the US$147 in July 2008 and US$115 in April 2011, but the move up will push our pump prices higher. Those pump prices are at record levels basically because of new taxes we have imposed on ourselves.
Driving these benchmarks higher were a much better-than-expected fall in US jobless claims, and continuing better-than-expected US regional manufacturing surveys.
Yields on benchmark US Treasuries rose, prices fell. In fact the US sold 10-year Treasury Inflation Protected Securities (TIPS) at a positive yield for the first time since November 2011 with investors no longer willing to pay a premium to guard against the threat of rising consumer prices.
In contrast, yields fell on 10 year Aussie government stock, as they did on NZ government stock too.
There were more stunning rises in US TBTF bank earnings. This time Morgan Stanley reported profits that rose by 66% compared with those of a year ago. But they also said they no longer meet the proposed new minimum leverage standards.
In China, June new home prices rose in all but one city, and this reinforced the challenges Premier Li has in trying to rein in speculative investment, even as their economy slows.
The NZ dollar starts today at 79.0 USc, 86.2 AUc which is its highest level since November 2008, and the TWI is at 75.0.
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3 Comments
Trans-Pacific Partnership Agreement (TPPA) about to take place in Malaysia.
How will this affect NZ minimal wages??????????????
http://www.nakedcapitalism.com/2013/07/how-the-transpacific-partnership…
Ulysses says: July 18, 2013 at 11:16 am
Yes. One point not emphasized in this article is that the TPP will make it possible to challenge wage laws and other labor protections. Does Bangladesh allow a minimum wage of less than $2.50/day? Then the U.S. can be sued and forced to pay damages for presuming to maintain a minimum wage of > $7/hour. This is why President Obama’s call for raising the minimum to $9 is a completely bs attempt at covering up the fact that the TPP his administration is pushing will devastate the living standards of working Americans. The whole thing is a race to the bottom!
The points that you raise are important. I felt sorry for you sitting there - all day on your own.
In the 1980's an old American living in Golden Bay NZ, by the name of Stanley Reay used to send regular letters-to-the-editor of the Nelson Mail. Someone should search out Stanley's letters and put them up onto the internet somewhere.
Stanley Reay mapped out the future of global finance and economic affairs in very clear words. He turned out to be 100% correct. A very clever man. Stanley's future has now arrived.
One of Stanley's last letters outlined the prospect of an Asian worker being paid the same as a NZ worker - to manufacture the same item. He did not forecast the Asian workers wage rising!
His words were not wasted. I listened and I learned - and planned.
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